Bagmita Borthakur and Bishaldeep Kakati
India’s cooperative sector is witnessing a structural as well as strategic transformation, one that is profound in nature. It was in July 2021 that the Ministry of Cooperation was created under Union Home Minister Amit Shah, and since then cooperatives are recast as futuristic institutions rooted in participation, equity, and local entrepreneurship, as such these are no longer treated as vestiges of an older economic order. Replacing the paper‑bound and fragmented rules of the past, the Ministry with a unified, digital ecosystem has empowered citizens from the panchayat outwardly that has been instrumental in the growth of the cooperatives. On the 6th of July, every year, India celebrates International Cooperative Day, guided by the motto “Sahkar se Samriddhi” (Prosperity through Cooperation).
As of now, 67,000 Primary Agricultural Credit Societies (PACS), have been computerized by the Union Ministry of Cooperatives, out of which, 43,000 function as Common Service Centres delivering Aadhaar services, crop insurance verifications, and more. Cooperative-sector loan disbursals have also risen fivefold, reaching Rs 1.28 lakh crore and a real-time database tracks over 8 lakh cooperatives and 30 crore members, which highlights significant development in the sector. A cooperative taxi service is also in the scheme of things as planned by the government, alongside coming up with India’s largest cooperative insurance company to strengthen the sector from within.
Across India, more than 1.15 crore “Lakhpati Didis”, women earning over ₹1 lakh a year- testify to the cooperative movement’s potential to lift households beyond subsistence. This shows that cooperatives have moved beyond ‘financial entities’ to ‘community-centric institutions. The paradigm shift also has a profound human impact. The formalisation of cooperative structures in Northeast India holds significant potential to enhance income and autonomy, particularly within women-led farming and artisanal economies. Cooperatives already play a vital role in India’s economic landscape, accounting for approximately 20% of agricultural credit, over 33% of fertiliser distribution, and contributing 4.5% to the national GDP through sectors like dairy. Projections indicate that the cooperative sector could generate over 110 million jobs by 2030. The global prominence of Indian cooperatives exemplified by IFFCO and Amul securing the top two ranks globally in 2024 and the designation of 2025 as the UN International Year of Cooperatives, underscore a growing international recognition of the model. For Northeast India, this momentum presents a critical opportunity to assert leadership through contextually grounded, indigenous cooperative models, such as bamboo-based enterprises and regionally anchored dairy collectives. Prime Minister Modi has also stated, “Cooperatives are not just any system, but a belief, a spirit … the changing face of the rural and agricultural economy.” The improved digital infrastructure that is visible in local realities redefine the spirit of progress and development in the northeast region.
In the Northeast, cooperative presence has historically been sparse, credit access limited, and market linkages weak. But these reforms that speak more than statistics; are the levers of change for regions long left on the margins. The aim to establish two lakh new PACS, one in every panchayat, distinctively shows the Government’s long term desire to fulfill the promises; to reverse the same old scenes lingering since long. Shah while inaugurating the Gangtok conclave, rightly pointed, “Fifteen years ago, no one would have imagined cooperative dairy conclaves being held in a Himalayan state.” His observation reflects how far the cooperative ecosystem has travelled, and how central it is becoming to regional transformation. He highlighted a transformative vision for multipurpose Primary Agricultural Credit Societies (PACS) in the Northeast one that reimagines them not merely as credit providers, but as dynamic rural enterprise hubs. These institutions are now being structured to integrate diverse functions such as dairy operations, LPG distribution, farmer-producer organisations, retail outlets, and digital services within a single village-based unit. This integrated approach represents a fundamental shift in the cooperative model from functioning as transactional entities to becoming centres of participatory rural governance and inclusive development. Despite the Northeast’s abundance of natural resources and human potential, the region has historically remained on the margins of India’s cooperative framework. However, concerted efforts are now underway to change this narrative and position the region as a vital contributor to the country’s cooperative resurgence.
The impact has already been visible to the people . In Sikkim, smallholder dairy farmers now produce over two lakh litres of milk daily, a feat unimaginable a decade ago. At the heart of this change are women’s cooperatives, which empower women as stakeholders, not just workers. Shah rightly noted, “There can be no greater means for women’s empowerment than dairy.”
Assam stands as another example of a state with a cooperative legacy, the same that dates back to the Shillong Cooperative Town Bank in 1904. The state now has a presence of 9,000 cooperatives. Another famous model of Assam is the Purabi Dairy, which supports rural livelihoods through fodder, healthcare, and training. It also localises the Amul model while creating income-generating opportunities for farmers. Additionally, Guwahati Refinery Employees’ Cooperative Society (GRECS) is another excellent example of urban cooperative success. The GRECS that was established in 1961 now runs a petroleum outlet, clothing store, steel counter, and LPG distribution for over 5,000 customers, demonstrating how cooperatives can thrive in industrial settings and contribute to community welfare. Moreover, the growing commitment to cooperative governance in the case of Nagaland is reflected by MARCOFED. The region’s bamboo sector which is cardinal to the daily lives can turn into formal bamboo cooperatives with proper and focussed support. This if carried on in a proper and visionary way, can definitely generate jobs and also build global value chains rooted in sustainable practices.
While cooperatives in the Northeast are often still seen as government loan agencies, there is growing recognition that true cooperation is built on contribution, not just consumption. With its agro-climatic diversity, indigenous knowledge, and strategic cross-border location, the region is well-positioned to lead a cooperative-led development model. Scaling successful examples like GRECS and Purabi, integrating bamboo and horticulture value chains, and transforming PACS into multi-service rural hubs can unlock economic, social, and political capital. This vision aligns with the Act East Policy and the government’s designation of the Northeast as Ashtalakshmi, a symbol of eightfold prosperity. As India targets a $5 trillion economy, the Northeast’s cooperative movement is not just a development tool but a geopolitical asset. In a region long viewed through a deficit lens, cooperatives offer a new narrative one of dignity, participation, and potential.
Bagmita Borthakur is a PhD Research Scholar, BITS Pilani and Bishaldeep Kakati is an Advocate, Gauhati High Court.
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