The Ministry of Cooperation, established on July 6, 2021, plays a pivotal role in enhancing the cooperative movement in India. Its primary focus is to ensure transparency, governance, and equitable participation within the cooperative sector. Previously, cooperatives were managed under the Department of Agriculture, Cooperation, and Farmers Welfare. The ministry aims to elevate the sector's contribution to socio-economic development.
In recent years, the Ministry has made significant strides:
India is home to approximately 800,000 cooperatives that operate across a range of sectors, directly impacting around 400 million people. Key types of cooperatives include:
By 2030, the cooperative sector is expected to create between 55 to 56 million self-employment opportunities, a marked increase from 30 million in 2018. It is also anticipated to contribute between 3 to 5% to India’s GDP, aligning with the Ministry’s efforts to modernize and expand the sector's impact.
The Ministry is actively working to integrate cooperatives into the Open Network for Digital Commerce (ONDC), aiming to enhance market access and upgrade digital infrastructure. This initiative will enable cooperatives to adopt advanced technologies and compete effectively in a modern economy.
Multi-state cooperatives address challenges such as limited market access, allowing operations across states. The Ministry supports organizations like IFFCO, Kribhco, Nafed, and NDDB, which focus on exports and organic products, thus enhancing cooperatives’ market reach and access to financial resources.
PACS are crucial to rural economic activities. The Ministry plans to establish 65,000 new PACS, with 20,000 set to be developed in the next five years. Efforts are underway to computerize PACS and simplify procedures for winding up to improve efficiency and governance.
The draft policy aims to create an umbrella organization under the Reserve Bank of India (RBI) and NABARD for enhanced coordination and financing. It emphasizes strengthening the institutional capacity of cooperatives and fostering collaboration among them.
The Ministry has introduced tax incentives, such as reducing the surcharge on income tax for cooperatives earning between ₹1 crore and ₹10 crore from 12% to 7%. These measures aim to alleviate financial burdens and promote growth.
Cooperatives have made significant contributions to exports through organizations like NCCL (National Cooperative Consumers Limited). The cooperative sector has generated over ₹40,000 crore in export revenue by trading in products such as rice, sugar, spices, and onions.
Through initiatives like establishing PACS for ration shops, agricultural pumps, and medical stores, the Ministry is focused on providing essential services to rural areas. This not only benefits the rural population but also fosters employment and self-reliance.
The cooperative sector continues to face challenges in modernizing infrastructure, adopting technology, and improving governance. Additionally, concerns regarding central overreach in state-governed cooperatives need to be addressed to maintain operational efficiency.
By 2030, the Ministry aims to integrate cooperatives with modern technologies and global markets, while reinforcing their traditional values of mutual cooperation and collective growth. The ultimate goal is to position cooperatives as a vital component of India’s socio-economic progress, emphasizing that collective effort and shared prosperity are the foundations of a thriving society.
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