India’s Cooperative Movement: A Catalyst for Rural Development
India’s cooperative movement is undergoing a significant transformation in recent years, with various success stories emerging across different states. From the powerful marketing federations in Gujarat to the thriving sugar cooperatives in Maharashtra and the rise of women-led poultry groups in Jharkhand, the landscape of cooperative enterprises is evolving rapidly.
The National Cooperative Development Corporation (NCDC), established in 1963 under the Ministry of Cooperation, plays a pivotal role in driving this change. As one of the country’s premier institutions and financial supporters of cooperative initiatives, NCDC is at the forefront of promoting progress through the cooperative model.
Driving Inclusive Growth Through Cooperatives
With over 8.44 lakh cooperative societies and more than 30 crore members in India, the cooperative sector has become a cornerstone of the country’s socio-economic fabric. NCDC plays a crucial role in fostering rural development and advancing the larger vision of Viksit Bharat by 2047. The Corporation has achieved remarkable financial performance and has adapted effectively to policy changes, focusing on inclusivity, innovation, and self-sufficiency.
One key indicator of NCDC’s growth is its substantial increase in payouts, which surged more than sixteen times in the span of ten years—from ₹5,735.51 crore in FY 2014–15 to ₹95,182.88 crore in FY 2024–25. By October 2025, NCDC had already disbursed ₹49,799.06 crore for FY 2025–26, highlighting its ability to meet the escalating demand for cooperative development.
Promoting Inclusivity and Empowerment
NCDC’s commitment to inclusivity is evident in its targeted support for underrepresented communities. Between FY 2021–2022 and FY 2024–25, the Corporation allocated ₹57.78 crore in loans exclusively to SC/ST cooperatives, ensuring equitable access to credit and institutional assistance. Women-led cooperatives have also experienced significant empowerment, receiving ₹4,823.68 crore in funding from 2022 to 2025.
Furthermore, NCDC has played a pivotal role in strengthening key sectors of the economy, such as the sugar industry. By March 2025, sugar mills had received a total support of ₹33,311.79 crore, enabling them to modernize production facilities and participate in India’s burgeoning ethanol market.
Driving Innovation and Sustainable Growth
NCDC has introduced specialized programs to address emerging needs and drive innovation in the cooperative sector. Initiatives like Yuva Sahakar, Ayushman Sahakar, and Dairy Sahakar have provided targeted support to young entrepreneurs, healthcare cooperatives, and dairy industry players, respectively.
Moreover, NCDC’s Digital Sahakar program is facilitating India’s digital transformation by supporting tech-savvy cooperative ventures. The Corporation’s strategic initiatives, coupled with the Central Sector Scheme “Grant-in-Aid to NCDC,” underline its commitment to fostering a transparent, competitive, and technologically advanced cooperative ecosystem.
Empowering Communities for Self-Reliance
As India progresses towards self-reliance, NCDC’s strategic approach of expanding credit, promoting inclusive financing, fostering innovation, and building capacities is instrumental in driving community-owned development and enhancing rural livelihoods. The cooperative model remains a potent tool for rural socio-economic upliftment, with NCDC at the forefront of shaping a sustainable and inclusive cooperative renaissance in India.
