This International Cooperative Day, India’s grassroots model is not just driving inclusion—it’s creating jobs, boosting incomes, and inspiring the world.
From the milk factories of Gujarat to the poultry farms of Odisha, India’s cooperative revolution is rewriting what rural ambition looks like. On July 6, as the world observes International Cooperative Day, India stands tall in showcasing a model that’s empowering farmers, uplifting women, and turning villages into engines of self-sustaining growth.
Led by Prime Minister Narendra Modi’s vision and driven by Union Home and Cooperation Minister Amit Shah, India’s cooperative sector has undergone a dramatic makeover. What was once a scattered network of local societies has evolved into a dynamic, digitally driven ecosystem, fuelling a new era of rural enterprise under the ‘Sahkar se Samriddhi’ movement.
Take Amul, India’s best-known cooperative success. From humble origins in Gujarat, it has grown into a multinational brand that competes with the biggest global dairy names. It is providing livelihoods to 36 lakh milk producers and inspiring similar cooperative models across states like Karnataka, Punjab, and Maharashtra. It’s not just a story of milk brand, it’s a movement of empowerment.
India’s cooperative muscle is now being recognised globally. In the International Cooperative Alliance’s 2024 rankings, homegrown champions IFFCO and Amul (GCMMF) claimed the top two spots for turnover-to-GDP per capita, putting India ahead of cooperative-heavyweights like Denmark and the Netherlands, where similar models power dairy, housing, and retail sectors.
The renewed energy into this movement isn’t just about global rankings or economic statistics. It’s about real people, real incomes, and real change.
In Gujarat’s Chiloda village, Umaid Thakore, 41, secured an interest-free loan without stepping into a bank—thanks to a digitised Primary Agricultural Credit Society (PACS).
In Odisha, Sumati Mundari, 38, transformed a ₹4 lakh SHG loan into a thriving poultry and dairy business, making over ₹1.6 lakh a year. She now proudly bears the title ‘Lakhpati Didi’—one among 1.15 crore rural women who have crossed that income mark.
These aren’t isolated stories. They’re snapshots of a larger shift where cooperatives are becoming vehicles of self-generated employment and financial independence. India has over 8.5 lakh cooperative societies, serving 29 crore members. They deliver 20% of the country’s agricultural credit, distribute 35% of fertilisers, and contribute 4.5% of GDP through dairy alone. This quiet force is driving a job-rich, inclusive economy.
Until a few years ago, the sector was burdened by outdated systems and fragmented governance. That changed with the formation of the Ministry of Cooperation in 2021, which injected focus, speed, and digital transformation. Nearly 68,000 PACS are being computerised of which 43,000+ already digitised and upgraded into Common Service Centres. These centres now offer over 300 government services, from Aadhar updates to railway bookings, right at villagers’ doorsteps.
The National Cooperative Development Corporation’s loan disbursements have leapt from ₹25,000 crore in 2021 to ₹1.28 lakh crore in 2025, unlocking growth and entrepreneurship at the last mile.
Looking ahead, the government aims to set up 2 lakh new PACS, ensuring credit, services, and livelihoods reach every corner. New-age cooperatives are also taking root—like a profit-sharing taxi service and a cooperative-led insurance company, which is expected to emerge as India’s largest private insurer.
This shift is redefining the cooperative’s image from a welfare relic to a modern, entrepreneurial engine. As PM Modi said in February 2024, cooperatives are the “foundation of an Atmanirbhar Bharat.” In May 2025, Amit Shah urged for greater tech integration and market linkages to amplify impact.
With 2025 declared as the International Year of Cooperatives by the United Nations, the world is watching. And India’s cooperative story is no longer panning out at a local level—it’s a global blueprint for inclusive growth. From creating livelihoods and boosting incomes to empowering women and energising grassroots entrepreneurship, India’s cooperative movement is doing more than transforming rural life. It’s rewriting the very definition of progress for the world’s largest democracy.
Gautam Mukherjee: The writer is an economic and political analyst and columnist. He regularly writes for different national dailies and participates as a panelist on news channels.
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