Ministry of Cooperation: Steering India's grassroots economy with reform and reach

When the Ministry of Cooperation was created in July 2021, it marked more than just administrative restructuring. It was a clear signal that India's vast cooperative sector, with over 8 lakh societies spanning agriculture, dairy, fisheries, housing, and credit, would finally have a national-level representation and platform for growth and reform. Four years later, it is evident that the Ministry has functioned as both a set of signposts, offering long-term direction, and a collection of weathervanes, responsive to immediate needs and evolving realities. The cooperative sector has long been a key yet silent backbone of the country’s rural economy.

- RAKESH ARRAWATIA/ SATYENDRA PANDEY

From dairy collectives to credit societies enabling small-scale entrepreneurship, cooperatives have expanded livelihoods, enhanced market access, and supported economic inclusion across the country. Yet, for decades, policy approaches to the sector remained fragmented, often confined to state boundaries and disconnected from national priorities. The creation of the Ministry changed that dynamic, bringing with it both structural intent and operational agility. In its first four years, the Ministry has moved beyond intent to delivery. A series of 60 major initiatives has defined this period, reinforcing its role as both a guiding force and an adaptive institution.

One of the most significant signposts is the “2,516 crore programme to computerise over 63,000 Primary Agricultural Credit Societies (PACS). These grassroots credit institutions are vital to rural livelihoods, and their digital transformation is enhancing transparency, operational efficiency, and service delivery. With implementation progressing steadily across states, it is a clear marker of systemic reform, backed by on-ground responsiveness. Another milestone is the roll-out of model bylaws for PACS in 2023, enabling these institutions to diversify beyond credit operations.