India's cooperative sector: 5 years of inclusive growth milestones
Synopsis
Five years after its creation, India's Ministry of Cooperation has converted 50,000 PACS into digital entities, unlocked ₹1.55 lakh crore in NCDC sanctions, launched AI-powered cooperative banking, and pushed cooperatives into urban mobility via Bharat Taxi — signalling that cooperatives are no longer a legacy sector but an active instrument of economic policy.
Key Takeaways
50,000 Primary Agricultural Credit Societies (PACS) converted to e-PACS on the Ministry of Cooperation's 5th Foundation Day, 6 July 2025 .
NCDC sanctioned ₹1.55 lakh crore and disbursed ₹1.27 lakh crore in FY2025-26 .
PACS digitalisation outlay raised to ₹2,925.39 crore from ₹2,516 crore in 2022.
White Revolution 2.0 targets a 50% rise in milk procurement by 2028-29 ; 25,282 dairy cooperatives registered so far.
Bharat Taxi has 6.37 lakh drivers and 35.77 lakh customers , with expansion to 7 new cities planned.
New platforms Sahakar CBS and Sahakar Sahyogi launched to modernise urban cooperative banking.
India's Ministry of Cooperation marked its 5th Foundation Day on 6 July 2025 by releasing an official factsheet documenting how the country's cooperative ecosystem — one of the largest in the world — has been reshaped into a driver of inclusive economic growth over the past five years. From digital banking to rural storage and dairy expansion, the transformation spans nearly every sector of the economy.
Key Milestones at the Foundation Day Event
The Foundation Day programme featured several landmark announcements. A total of 50,000 Primary Agricultural Credit Societies (PACS) were converted into e-PACS, marking a sweeping digitisation of grassroots credit institutions. Foundation stones were laid for 47 grain storage godowns to bolster cooperative storage infrastructure across rural India.
A Milk Supply Review Dashboard Portal for the National Dairy Development Board (NDDB) was also launched to improve the management of milk procurement and distribution nationwide.
New Digital Banking Platforms Unveiled
Two flagship initiatives of the National Urban Cooperative Finance and Development Corporation (NUCFDC) were unveiled at the event: Sahakar CBS and Sahakar Sahyogi. Sahakar CBS is a centralised Core Banking Solution designed specifically for Urban Cooperative Banks, while Sahakar Sahyogi is a conversational AI-powered platform built to enhance customer services and banking operations. Together, they signal a concerted push to modernise urban cooperative finance.
Financing and Digital Outlay
Technology has become central to cooperative governance, according to the factsheet. The financial outlay for the digitalisation of PACS has been raised to ₹2,925.39 crore in 2025, up from an initial allocation of ₹2,516 crore in 2022. The National Cooperative Development Corporation (NCDC) has also played a pivotal role: during FY2025-26, it sanctioned ₹1.55 lakh crore and disbursed ₹1.27 lakh crore. Additionally, ₹2,320 crore has been disbursed to Farmer Producer Organisations (FPOs) and Cluster-Based Business Organisations (CBBOs) under the scheme for the formation and promotion of 10,000 FPOs, as of May 2026.
White Revolution 2.0 and Dairy Expansion
The cooperative dairy sector is being strengthened under 'White Revolution 2.0', which targets a 50 per cent increase in milk procurement by 2028-29. According to the factsheet, 25,282 dairy cooperative societies have been registered so far, laying the groundwork for a significant expansion of India's dairy supply chain.
Bharat Taxi: Cooperatives Enter Mobility
Among the more distinctive cooperative ventures is Bharat Taxi, an initiative of Sahakar Taxi Cooperative Limited. The platform currently has 6.37 lakh registered drivers and 35.77 lakh registered customers. It is presently operational in Delhi-NCR, Gujarat, Lucknow, Chandigarh, Mumbai, Jaipur, and Kanpur, with expansion planned to Ranchi, Patna, Guwahati, Bhopal, Kolkata, Indore, and Nagpur in the coming months. This marks cooperatives' entry into the gig-economy mobility space, directly competing with private aggregators.
'As India advances on its path of inclusive and sustainable development, cooperatives will continue to foster equitable growth and resilience,' the official statement said. The breadth of initiatives announced on 6 July suggests the Ministry intends to accelerate that trajectory into the next phase of cooperative-led development.
Point of View
Or are they primarily institutional metrics? Converting 50,000 PACS to e-PACS is a genuine infrastructure achievement, but digital access without financial literacy and last-mile connectivity risks replicating the same elite-capture dynamics that plagued cooperative governance for decades. The NCDC's ₹1.55 lakh crore sanction figure is substantial, but disbursement lagging sanction by over ₹28,000 crore in a single year points to execution friction that the factsheet glosses over. Bharat Taxi entering seven more cities is a bold cooperative-economy experiment — but its long-term viability against well-capitalised private aggregators will be the real test of whether this model is sustainable or subsidised.
NationPress
6 Jul 2026
Frequently Asked Questions
What is the Ministry of Cooperation's 5th Foundation Day?
The Ministry of Cooperation's 5th Foundation Day was observed on 6 July 2025, marking five years since the Ministry was established. The event showcased major milestones including the conversion of 50,000 PACS into e-PACS, new dairy and storage infrastructure, and the launch of AI-powered cooperative banking platforms.
What are Sahakar CBS and Sahakar Sahyogi?
Sahakar CBS is a centralised Core Banking Solution for Urban Cooperative Banks, and Sahakar Sahyogi is a conversational AI-powered platform to improve customer services and banking operations. Both were unveiled as flagship initiatives of the National Urban Cooperative Finance and Development Corporation (NUCFDC) on 6 July 2025.
What is White Revolution 2.0?
White Revolution 2.0 is a government initiative to strengthen India's cooperative dairy sector, with a target of increasing milk procurement by 50 per cent by 2028-29. As of the latest factsheet, 25,282 dairy cooperative societies have been registered under this drive.
How much has NCDC sanctioned and disbursed in FY2025-26?
The National Cooperative Development Corporation (NCDC) sanctioned ₹1.55 lakh crore and disbursed ₹1.27 lakh crore during FY2025-26. It also disbursed ₹2,320 crore to FPOs and Cluster-Based Business Organisations under the 10,000 FPOs scheme as of May 2026.
Where is Bharat Taxi currently operational and where will it expand?
Bharat Taxi, run by Sahakar Taxi Cooperative Limited, is currently operational in Delhi-NCR, Gujarat, Lucknow, Chandigarh, Mumbai, Jaipur, and Kanpur. It plans to launch in Ranchi, Patna, Guwahati, Bhopal, Kolkata, Indore, and Nagpur in the coming months, with 6.37 lakh registered drivers and 35.77 lakh customers on the platform.
