As the world marks International Day of Cooperatives on July 5, 2025, India stands at the forefront of this global movement, reaffirming its faith in the transformative power of cooperatives. The day comes with added significance this year, as 2025 has also been declared the International Year of Cooperatives by the United Nations.
The Ministry of Cooperation has taken the opportunity to highlight the aims, achievements, and expanding horizons of India’s cooperative movement, which has emerged as a vital engine of rural development and inclusive economic growth.
From their historical roots in pre-independence India, cooperatives have evolved into a dynamic network of over 8.4 lakh societies that empower communities across every sector, from agriculture and dairy to banking, housing, and fisheries.
They function as people-centric enterprises built on shared ownership and democratic values, driving forward the idea of collective prosperity. The Ministry’s vision of “Sahkar se Samriddhi” is steadily taking shape through landmark initiatives designed to modernize and deepen the impact of cooperatives nationwide.
One of the most notable developments is the establishment of the Tribhuvan Sahkari University at Anand, Gujarat, the country’s first national-level cooperative university. Named after cooperative pioneer Tribhuvan Das Patel, the university will provide specialized training and education to professionals in the sector, ensuring a skilled workforce for the future. Union Home Minister and Minister of Cooperation Amit Shah will lay its foundation stone on July 5, marking a milestone in India’s cooperative journey.
India’s cooperative ecosystem is undergoing a digital transformation with the computerization of nearly 68,000 Primary Agricultural Credit Societies (PACS). These village-level institutions, which form the bedrock of India’s rural credit system, are being equipped with ERP systems to enhance efficiency, transparency, and service delivery. The Ministry has also issued Model Bye-Laws to streamline PACS operations and ensure uniformity across states.
Cooperatives are diversifying rapidly, with new multipurpose PACS, dairy and fisheries societies being set up in every village. Over 18,000 such entities have already been registered as of March 2025. These societies not only provide credit but also operate as Common Service Centers, Jan Aushadhi Kendras, and even Pradhan Mantri Kisan Samridhi Kendras. They are also entering new domains such as retail fuel and LPG distribution, making them self-sustaining hubs of local enterprise.
White Revolution 2.0, launched in December 2024, is another ambitious initiative aimed at boosting milk procurement by 50% over the next five years. Already, thousands of new dairy cooperatives have been formed, injecting new life into India’s livestock economy and expanding income opportunities for rural households.
In terms of financial empowerment, cooperatives have seen a slew of reforms. Income tax surcharges and MAT rates have been lowered for cooperative societies, and the cash transaction limits have been significantly raised. Cooperative Sugar Mills have received targeted support for ethanol production, including permission for multi-feed ethanol units and preferential procurement by oil marketing companies. Meanwhile, PACS have started issuing RuPay Kisan Credit Cards and operating micro-ATMs, bringing banking to the doorstep of farmers.
Urban Cooperative Banks (UCBs) and rural cooperative banks are being strengthened through regulatory reforms. The RBI has approved a new umbrella organization for UCBs, and a Shared Services Entity under NABARD for rural banks will be operational in 2025-26. These steps aim to ensure financial resilience and service innovation within cooperative banking.
The role of the National Cooperative Development Corporation (NCDC) continues to expand, with the institution disbursing Rs 95,000 crore in the current financial year, nearly 60% more than the previous year. With a new Rs 2,000 crore bond issuance approved, NCDC is poised to play an even larger role in financing cooperative ventures in the years ahead.
India’s celebration of International Cooperatives Day is part of a larger national action plan aligned with the UN’s declaration of 2025 as the International Year of Cooperatives. This includes workshops, exhibitions, and training programs designed to deepen awareness and widen participation in cooperative governance. A new National Cooperation Policy 2025 is also on the anvil, replacing the outdated 2002 policy and setting the direction for the future.
With these initiatives, India is not only honoring its rich cooperative legacy but also building new structures for a future where prosperity is shared and community-led development is the norm. The cooperative model has shown that inclusive and sustainable growth is not just an aspiration but an achievable reality.
As the world looks for models of resilience, equity, and participation, India’s cooperative movement offers a compelling blueprint, proving once again that when communities come together, they build not only better livelihoods but also a better tomorrow.
