The Indian Cooperative Movement: A Vehicle for Aatmanirbhar Bharat

 The Indian Cooperative Movement: A Vehicle for Aatmanirbhar Bharat

By Dinesh K Kapila, CGM NABARD (Retd)

(Published in The Cooperator, Nov 2025).  

My work and exposure has only strengthened my conviction  that what India requires is an active network of cooperatives along the entire spectrum of size, turnover and products / services. The vision of Aatmanirbhar Bharat (AB), or we can say Self-Reliant India, necessitates an economic structure that promotes distributed growth, resilience, financial awareness and inclusivity across the entire demographic spectrum. It is my considered view that the Indian Cooperative Movement is not merely a supplementary mechanism as often perceived but a core institutional vehicle uniquely positioned to deliver the decentralized, grassroots economic transformation required by the AB mandate. Cooperatives bridge the critical gap between centralized national policy goals and localized implementation, particularly in rural and agricultural supply chains. Should it be conceived to be only for rural areas is a moot point though.

 

We need to reiterate the core philosophy of cooperatives which are built on the values of, Self-help, Self-responsibility, Democracy, Equality, Equity, Solidarity. These values are put into practice through the Seven Cooperative Principles, which guide their operations. Voluntary and Open Membership; Open to all willing to accept the responsibilities of membership, without discrimination along with Democratic Membership with One member, one vote (primary cooperatives); members actively set policies and make decisions; Members contribute to and democratically control the capital of their cooperative   and take economic decisions; they exercise and guard their autonomy and independence and function as Self-help organizations controlled by their members, even maintaining autonomy when dealing with external entities like the government; Provision for members, elected representatives, managers, and employees to contribute effectively and by organizing training and capacity building sessions; Strengthening the cooperative movement by working with other cooperative institutions at the local, national, regional, and international levels; alongside  a concern for the community and working for the sustainable development of their communities.  This will be the touchstone for Cooperatives to be adjudged as furthering AB India.

 

The cooperative sector model as we know, based on self-help, democratic control, and equity aligns quite appropriately with the five pillars of AB (Economy, Infrastructure, System, Vibrant Demography, and Demand) and can be envisioned as reasonably robust if scaled up. Historical cooperative successes, such as the achievement of self-sufficiency in the dairy sector (Amul) and fertilizer production (IFFCO), serve as powerful prototypes for large-scale import substitution and export competitiveness. The sector has undergone in-depth structural reforms, spearheaded by the Ministry of Cooperation (MoC) since 2020. Key interventions include the transformation of Primary Agricultural Credit Societies (PACS) into multi-functional Common Service Centres (CSCs) and the ambitious World’s Largest Decentralized Grain Storage Plan. Furthermore, legislative updates, notably the Multi-State Cooperative Societies (MSCS) (Amendment) Act, 2023, address historical vulnerabilities by strengthening governance, transparency and accountability, which underlines its fit with the 'System' pillar.

 

As assessment of the challenges and gray areas would be in order as despite India having a large number of cooperatives, the true spirit and functional efficiency often fall short due to several deep-seated challenges. Political and Bureaucratic Interference do erode the functional autonomy, Government control, excessive regulation, and involvement of bureaucracy and politicians in the management and daily functioning of cooperatives directly undermine the core principle of autonomy and independence. Politicization impacts their functioning as member-centric organizations. The lack of democratic control and participation is evident often as the leadership of many cooperatives, thereby violating the principles of democratic membership.

 

Apathy of the members is at times indicated by many ordinary members lacking the  awareness of the cooperative's objectives, their rights, or the rules, or their responsibilities, leading to low participation in decision-making and a failure to exercise self-responsibility.  A major concern is managerial and functional weaknesses with many cooperatives being managed by non-professionals, part-time, or inefficient personnel, leading to mismanagement, operational inefficiencies, and sometimes fraud. Inadequate capital is another concern, a lack of savvy financial and savings culture among members. Alongside a focus or dependence on government support. Audit stays weak and the sector is highly concentrated in a few states while other regions remain largely underdeveloped, limiting the full potential of the sector.

 

The full realization of the cooperative potential for AB is contingent upon overcoming persistent challenges, including regulatory friction between central and state governments, deficits in professional management, and digital literacy gaps at the grassroots level. Therefore, maximizing the contribution of the cooperative sector demands targeted policy interventions focused on regulatory harmonization, mandatory professional standards for leadership, and accelerated integration of cooperative enterprises into national digital market platforms. Stress should be on building an explicit culture of what being a cooperative entails and adhering to the concept and the cultural values of the system.  

While on training in the Philippines years ago a Cooperative Society was visited in a large village. This Society was into training and extension, credit within assessed limits, limited savings products, negotiating contracts with input suppliers and their association for extension upto harvesting, contracting for lifting of the produce, capacity building of members and had even as a small venture mobilized local teachers as a cooperative. A question as to the support and dependence on the Govt or Govt arms elicited a clear and straightforward response as to their conceptualizing their work for the year as a part of the Coop System but not as a subordinate dependent institution.  Such a response has not been observed within the nation over a long career.   

The Vision of Self-Reliant India (Atmanirbhar Bharat Abhiyan)

The Aatmanirbhar Bharat Abhiyan is a strategic framework aiming to make India and its citizens independent and self-reliant “in all senses”. This goal transcends mere import reduction; it is a blueprint for structural economic resilience designed to handle disruption and drive global growth. The strategy rests on five foundational pillars:

1.     Economy: The objective is to achieve quantum jumps in economic growth, demanding structural shifts away from import dependency towards an export-driven growth model.

2.     Infrastructure: This pillar mandates the development of modern physical infrastructure, encompassing roads, railways, airports, and digital connectivity, including services like telemedicine and tele-law.

3.     System: Success relies on technology-enabled systems, supported by rational tax structures and simple, clear laws designed to enhance efficiency and ease of business.

4.     Vibrant Demography: Utilizing India's demographic dividend—the large youth population and capable human resources—is central to driving sustained economic growth and cultivating entrepreneurial mindsets.

5.     Demand: This involves the full utilization of the power of demand and supply chains, promoting domestic production through initiatives like 'Vocal4Local' and 'Made in India'.

The overarching strategic objectives under AB include comprehensive supply chain reforms for agriculture and positioning India as a global manufacturing hub.

The Cooperative Principle in National Development

The cooperative movement in India possesses a deep historical legacy, formalized in 1904 with the introduction of the Cooperative Credit Societies Act. While initially credit-focused, the movement expanded significantly post-Independence, with national planning emphasizing the cooperative method for all aspects of community development, including urban banking, industrial production, consumption, and housing.

 

The core function of cooperatives is to promote financial inclusion, especially by providing credit to farmers and small entrepreneurs who often struggle to access conventional banking services. This structure fosters rural development, reduces socio-economic disparities, and empowers local communities. Fundamentally, cooperative societies operate on the democratic principle of "one member, one vote" and distribute surplus based on member participation rather than capital investment. This structure promotes self-reliance and acts as a mechanism to alleviate exploitation by eliminating intermediaries and ensuring fair prices for producers.

The main types of cooperatives in India are consumer, producer, marketing, housing, and credit societies. Other types include agricultural, worker, and multi-state cooperatives, which focus on specific sectors like farming, employment, and large-scale operations.
Overall, the objective is to provide goods and services at affordable price points, reducing intermediate layers, collectively bargaining as small producers or MSMEs, affordable housing etc. Women Cooperative Societies are there too.

 

The Personalised Perspective.

The cooperative sector presents varied experiences across cooperative societies as also cooperative banks. Among the primary agriculture corporate societies, the Mahil Gehlan primary agri coop credit Society in District Nawanshahr in Punjab with its own clothing and textile Centre, its own banking section, its own centre for cosmetics to a range of consumer products and its own vehicle, is impressive, t was an experience to watch it function over the years. I was associated with the district and it left a lasting impact. There was another such society in in Hoshiarpur district, If I remember the Lambran was very well conceptualised  conceived, and operationalized. I also would like to mention here a primary society in district Ropar, where the Secretary of the Society was dynamic. It was hiring out farm machinery, two decades back, but the secretary could not produce any board resolution justifying his retaining ₹1,00,000 every evening for emergency expenditure. Obviously good governance and adhering to policies and principles is an area which needs strengthening is the business sense.

 

In one District Cooperative Bank when asked if they had drilled down to the market share and viability of each product, the earnings per product etc, the Board responded by saying now do we have to do this also. These are issues which highlight that the essence is developing in Boards and Officials a sense of business, commercial viability and astutely managing finances as also marketing products alongside consumer satisfaction. These are the main challenges while managing the cooperative or a cooperative bank. It has to be stressed time and again that the job of a function of a board was macro level policy approvals, placing  effective human resources, and studying the financial and operational viability rather than getting engrossed in routine administrative issues.

Successful cooperatives, which can be flagbearers for aligning with the objective of AtamNirbhar India are for example, the Hitkari Kamdhenu Society in Himachal Pradesh starting from with a small capital way back in 2001, it was awarded in 2021, the Best Milk Society of India, its growth is motivation by itself and so is its expansion into another district like Kullu. The Jabalpur Indian Workers Cooperative Society Limited is a success and maintains consistent training, capacity, building and a membership drive and on recruitment or even enrolling a member there is training and then all promotions are through the channel and all staff are members simultaneously and there is a sequence of meetings every month with the staff who are themselves members to make them aware about the movement and the development. The Aslali Primary Agriculture Society in Gujarat is another very good example with it’s modernised transparent digitized model for governance. It has sustainability and inclusivity and its paving the way for others to replicate the model, it has got agriculture finance, input distribution, a consumer store warehousing, it facilitates healthcare access, it mobilises savings and it does value addition. Product alignment with commercial viability and in harmony with consumer or member requirements is the key.

 

In Andhra Pradesh, the role of the tax development cell is again exemplary and there is the PACS  awareness pilot project in Una Himachal district which has produced very good results as regards embedding  required roles and responsibilities, bylaws and legal compliances and corporative principles.  

 

If there has been exasperation, it is linked to the slow pace, the non alignment of priorities with business goals and viability, interference by functionaries of the political parties at the PACS / District level, frequent transfers and movements and a lack of recruitment complementing the cooperative model.

 

The RCS, Registrar Cooperative Societies, has to evolve, this is a major concern, the RCS has to be a regulator cum  facilitator in the true spirit, the data base has to be updated real time, the officials have to be in harmony with the concept and idea of cooperatives. As an aside, it would be in order to study the number of legal cases lodged and attended to by the Dy RCS and above. Efficiency and productivity have to improve.    

 

The cooperatives can play a foundational role in India’s growth, not only agriculture or rule development, but even in the urban areas, the essence is to absorb the principles of the cooperative movement and to understand scale comes with time. It has to be operationalised. Incrementally and mutual dependence and Corporation would be the key. This could facilitate the strong commitment towards cooperatives across India would enable modernisation and capacity building of the movement and facilitate a self reliant India, the AtamNirbhar India.

As regards cooperatives, we also need to examine the potential for the cooperatives of professions, such as lawyers and doctors, but this is something which eludes our society and business fabric. If not in operations, it could be of Coop Credit Societies of Doctors or Lawyers etc. Young lawyers would only benefit from credit cooperatives offering insurance, consumer loans, savings etc; issues of trust and lack of knowledge are major barriers.  It would boost AB India.

 

Strategic Alignment: Mapping Cooperative Ethos to AB Pillars

The institutional character of cooperatives makes them inherently aligned with the principles of self-reliance. The capacity of cooperatives to mobilize capital and human resources at the village level provides an essential foundation for the AB vision. One fundamental strength of utilizing cooperatives is the crucial advantage of decentralization as an AB hedge against concentration of wealth. While AB requires 'quantum jumps' in the economy , typically associated with large-scale industrialization, the cooperative model achieves economic self-reliance through distributed wealth (income being shared) and decision-making. With over 130 million farmers associated with Primary Agricultural Credit Societies (PACS)  the model ensures that economic expansion is democratically owned and inclusive, preventing the concentration of capital and making national self-reliance politically and socially resilient.

 

Furthermore, a significant strategic shift is evident in the transition from credit focus to comprehensive development. Historically, the movement centered on providing financial credit. However, the post-2020 initiatives focus on making PACS multi-purpose entities, encompassing dairy, fisheries, and non-credit commercial activities. This structural change recognizes that financial access alone is insufficient. By empowering the cooperatives to act as a producer, processor, and retailer, the structure is fundamentally designed to fulfill both the 'Demand' and 'Supply Chain' pillars of AB.

 

If PACS are fully computerised and integrated with CBS (Core Banking), that will be certainly a radical change. And for a PACS Secretary, there is a need for a fit and proper criteria and the recruitment criteria should be for MCOM / MBA equivalent officials while the existing cadre would require extensive reorientation. That would make a change. This coupled with good governance practices would rejuvenate the coop banks.

 

The AB Pillar as regards the Economy envisages a quantum jump in export driven growth, the cooperative mode to deploy would be the integration of value chains and import substitution, AMUL and IFFCO / KRIBCHO could lead it. As regards creating high grade physical and digital Infrastructure, the cooperative sector can complement with decentrailsed storage and digital access, as already underway The Pillar Three focuses on making systems technology enabled and simpler rules is underway through governance reforms and digitisatiion and the changes to the Multi State Coop Act and PACS as Multi  purpose centres are in sync with the same. The fourth pillar  centres around utilizing the youth in entrepreneurship or in having an entrepreneurial mindset, the objective is employment generation and capacity building, the internship programmes such as Saakar Mitra are on these lines as are ventures such as Lijjat Papad. We need to  expand upon this. The small holdings, the huge demographic  profile, weak supply chains all suggest the creation of a vibrant cooperative culture would be effective – including branded, well positioned cooperative stores and retail points. Pillar Four is Demand and Supply, meeting the requirements of both factors with a focus on local production and services, this could be through existing price support measures, market stabilization activities, utilizing PACS as retail touch points.

 

The essence of the above is that a nation with a demographic profile as we have, with marginal and small farmers, barriers and concerns about extension, inputs and marketing and storage, the need for MSMEs and Food Processing would need a viable and entrepreneurial cooperative system. That would conform to the objective of Atamnirbhar Bharat, all  along the supply and value chain. Importantly, we need cooperatives of professionals, service businesses, retail touch points etc. The Government may promote or sponsor but then the inherent business cum entrepreneurial drive as conceptualized should be energized. Governance is the key. This is the key to its upscaling.    

 

The Cooperative Ecosystem: Structure, Scale, and Systemic Foundations

India possesses the world's largest network of cooperatives. Primary Agricultural Credit Societies (PACS) form the essential backbone of this structure, serving the rural agrarian landscape and boasting a substantial membership exceeding 130 million farmers. These entities are the primary interface for credit and services at the village level.  Historically, the credit structure was organized into a strong three-tier system, primaries (PACS) at the base, Central Cooperative Banks at the middle, and Provincial Cooperative Banks at the apex, primarily designed to provide short-term and medium-term finance.

 

To prepare this immense structure for the demands of modern commerce and the AB System pillar, a foundational shift is underway: the strengthening of PACS through mandatory computerization. This initiative is a prerequisite for establishing technology-enabled systems across the entire cooperative ecosystem. The cooperative model has already demonstrated its unique capability to achieve self-sufficiency on a national scale across multiple critical sectors, albeit with varying degrees of Government patronage.  Perhaps it is time to now enable a shift to a more self independent structure aligned and working within a matrix of cooperative institutions, mutually beneficial yet largely autonomous.

 

As an example, India’s ascent to the world’s largest dairy producer is inextricably linked to the inclusive cooperative model. This achievement supported approximately 70 million farmers in generating income, moving the nation from a position of deficiency in the mid-1960s to self-reliance and surplus today. The success of the cooperative model in dairy illustrates the multiplier effect of self-sufficiency. The institutional engineering inherent in the Anand pattern cooperative provided a guaranteed market and fair price for milk, substantially reducing transaction costs for millions of smallholders. This created stable, predictable income streams in rural areas. This stable, widespread rural demand then acted as a stimulus for other local economic activities, fueling entrepreneurship in a continuous, self-sustaining loop. Furthermore, analysis shows that cooperative membership, particularly among smallholders with less land, is directly associated with better incomes and poverty reduction. A concern though is the cost, on a comparative basis with nations focused in dairy.

 

Other sectors such as fertilizers and inputs are similarly success stories and align with the goal of Aatmanirbhar Krishi (Self-Reliant Agriculture) by reducing dependence on imported inputs. The Government has emphasized the need to produce fertilizers tailored to India's specific needs, urging a reduction in import dependence. Cooperatives such as the Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Krishak Bharati Cooperative Limited (KRIBHCO) play a pivotal role in strengthening indigenous production and promoting sustainable practices. IFFCO’s mission is explicitly aligned with the Aatmanirbhar Bharat vision through innovation and digital outreach. The cooperative’s introduction and scaling of products like Nano Urea and Nano DAP set a global benchmark for cooperative-driven sustainability and innovation while directly advancing the national resolve for self-reliance in farm inputs.

 

Policy Catalyst: The Ministry of Cooperation (MoC) and the AB Mandate

The establishment of the Ministry of Cooperation in 2021 underscored the Government's intent to harness the sector's potential under the philosophy of "Sahakar-se-Samriddhi" (Prosperity through Cooperation). The MoC has introduced forty eight initiatives focused on strengthening the cooperative sector.

 

A critical component of leveraging the 'Vibrant Demography' pillar is youth engagement and skill development. The National Cooperative Development Corporation (NCDC) launched the Sahakar Mitra: Scheme on Internship Programme (SIP), offering paid interns, thereby cultivating the capable human resources essential for AB. The imperative for digitalization as a precursor to economic viability is central to the MoC's strategy. Historically, cooperatives have been hampered by inadequate capitalization, lack of professional management, and poor financial viability. The computerization of PACS, along with the introduction of the National Cooperative Database (NCD) represents more than a mere technological upgrade. It establishes the transparency and standardized accounting necessary to modernize the sector. This foundational digital layer is vital for attracting professional managers and securing large-scale commercial financing, ensuring cooperatives transition from subsidized entities to competitive, viable businesses capable of fulfilling the AB economic vision.

 

There have been key policy developments like the approval for setting up two lakh new multipurpose primary cooperatives, including those in the dairy and fishery sector. There is the  Marg Darshika action plan, we have the national campaign on Corporation among cooperatives. There is the development of the cooperative governance index for rural cooperative banks which has got both qualitative and quantitative factors group under eleven categories and then there is the expansion of District cooperative banks to 240 new District Cooperative Banks alongside the banks accelerator programme. The National cooperative policy is the broad framework which is fostering innovation, expanding cooperatives into MSMEs and renewable energy and strengthening the legal framework to ensure accountability. These will certainly be integral to the drive for Atam Nirbhar Bharat.

 

A Discussion on Aatmanirbharta and Proven Models of Cooperative Success

The long history of successful Indian cooperatives as above provides concrete evidence that this organizational structure can deliver self-reliance by enabling mass participation in complex economic activities. The success of Amul is the most prominent example of how cooperatives achieve economic resilience and self-reliance through a strategic market entry. Amul excelled in import substitution, specifically by developing high-quality products that displaced previously imported goods. This strategic intervention filled market gaps arising from restrictive imports and simultaneously maintained price stability for domestic dairy products. Crucially, Amul scaled rapidly to compete successfully against large multinational corporations like Nestle and Glaxo on a national level. This success demonstrates that the cooperative model is highly effective in driving the 'quantum jumps' required by the AB economy pillar.

 

This model underscores that scale and inclusivity are mutually reinforcing within the cooperative framework. Amul’s global stature is defined not just by its size (the largest milk producer) but by its capacity to stabilize incomes for 70 million smallholders. Because the ownership structure mandates equitable wealth distribution among its members, the success of Amul guarantees that the benefits of national self-reliance reach the base of the pyramid, creating robust and equitable economic development that single-entity corporate structures cannot replicate.

Similarly, input security via IFFCO and KRIBHCO leads to self-sufficiency in agricultural inputs. By focusing on domestically developed, efficient technologies, these cooperatives actively reduce India’s reliance on global supply chains for essential farm inputs, a critical step in fortifying the 'Demand' and 'Economy' pillars. Shri Mahila Griha Udyog Lijjat Papad (Lijjat) provides a compelling blueprint for leveraging the 'Vibrant Demography' pillar through women’s entrepreneurship and promotes female economic empowerment on a massive scale. Lijjat’s success demonstrates that true self-reliance (Aatmanirbharta) is achieved when locally produced, high-quality goods (like their standardized papads) achieve global competitiveness, ad it is exporting to twenty five countries. In commodity markets, cooperatives play a crucial role in mitigating volatility. The Central Arecanut and Cocoa Marketing and Processing Co-operative (CAMPCO) functions effectively as a price stabilizing mechanism. While it does not fix prices, CAMPCO maintains consistent procurement from growers, particularly when market prices are sluggish or declining. 

The New Initiatives Align with Atamnirbhar Bharat.

The analysis as above would indicate that the cooperative network as a primary engine for AB is a work in progress within a holistic vision. The Ministry of Cooperation and its varied and broad ranging initiatives across varied verticals suggest a focus on improving infrastructure, integrating technology, and enhancing governance. The most significant contemporary reform is the transformation of the Primary Agricultural Credit Societies (PACS) into multi-functional, modern enterprises. The new Model Bye-Laws enable PACS to significantly diversify their business beyond traditional credit activities. This transformation empowers PACS to diversify income streams and become robust local economic pillars, moving decisively beyond their traditional role The other is the key policy decision utilizing PACS as Common Service Centres (CSCs). This integrates the rural cooperative structure directly into the digital governance framework, delivering a huge number of digital and welfare services, including Aadhaar-based services, financial literacy training, and facilitating Direct Benefit Transfers (DBT).

Furthermore, PACS are being designated to function as Pradhan Mantri Kisan Samriddhi Kendras (PMKSKs), operating as "One Stop Shops" for farmers. Here, farmers can access critical agricultural inputs and services, such as fertilizers, seeds, farm implements, and soil/seed testing. This dual role, providing both government services and commercial inputs, ensures diversified revenue for PACS and generates essential employment opportunities at the village level.  This convergence highlights the strategic advantage of integrating digital access points (CSCs) with physical infrastructure investments (warehouses and hiring centers). This potentially could, if implemented correctly, enable a localized storage and service facility evolve as a combined logistics, commerce, and governance access point.

 

A critical bottleneck in agricultural self-reliance is inadequate storage capacity. The MoC has  introduced the 'World’s Largest Grain Storage Plan in Cooperative Sector'. This visionary plan involves establishing decentralized storage facilities and other agricultural infrastructure at the PACS level. The economic impact of this decentralized infrastructure is multi-fold. It directly reduces post-harvest losses, a significant factor in supply chain inefficiency. And these initiatives align closely with AB.

 

The Government has addressed structural flaws through the Multi-State Cooperative Societies (MSCS) (Amendment) Act, 2023. This legislative reform targets enhancing transparency, accountability, and governance. The key provisions introduced to strengthen the system include the establishment of a Co-operative Election Authority and financial accountability through a Panel of Auditors. The aim is to professionalize the sector. This is essential for boosting external trust among financial institutions and potential private partners, thereby unlocking the large-scale commercial investment needed to scale cooperative enterprises and meet the AB 'Economy' objectives.

 

Challenges and Gray Areas.

Despite the focused policy focus and resource allocation, the cooperative movement faces significant systemic and operational constraints that threaten to slow its acceleration toward achieving the goals of Aatmanirbhar Bharat. The main areas to address are as referred to, firstly, the lack of professional management and skilled human resources remains a major operational challenge. Recruits should not view it as a Government job.  Furthermore, governance issues and excessive governmental control often compromise the democratic, self-governing character of cooperatives, leading to mismanagement and the dormancy of many societies. While massive resources are dedicated to digital infrastructure (PACS computerization, CSCs) interaction indicates that gaps in digital literacy exist. If the primary membership and local management lack the necessary skills, the utilization of multi-functional digital entities will remain suboptimal.

The lack of success and non viability of the Land Mortgage Coop Banks is indicative of the inability to adapt, diversify the product base and to build upon the time tested relationship with the farming community. The membership was more of a fiction and limited to AGMs. That gap has lead to their battling viability and an erosion of the customer base. Cooperative Banks are as of now on a lower profile in terms of market share though there s an uptrend. The concern is would it sustain once the intrinsic linkages with the Govt programmes dilute.

The gray area is the required efficacy, productivity and viability. And Human Resources. And understanding the imperative of running a business. These remain core areas of concern and indicate focused capacity building initiatives are mandatory. The implementation of national cooperative reforms is constrained by Centre-State coordination issues. Since cooperatives are primarily a state subject, uneven state adoption of modern legislative and governance models compromises the ability to create standardized national value chains and integrated platforms. Regulatory and Legislative Harmonization would reduce policy conflict.

Many PACS remain hampered by inadequate capitalization and imbalances as also weak linkages with modern financial institutions and commercial value chains, making their growth as viable business enterprises challenging. Policy and digital initiatives cannot substitute for good governance, business acumen, astute commercial management and branding as also pro active participation by members. Mandatory Professionalization and Capacity Building is required to  address the human capital deficit as it is essential for institutional efficiency and scaling commercial operations.

We need standardized, specialized training modules for all elected board members and key management staff of high-turnover cooperatives and all newly designated multi-purpose PACS. This training must explicitly cover digital management, modern finance, and commercial logistics. The lack of professional expertise is a major barrier to competitive scaling. The focus must shift from merely building digital infrastructure to ensuring its profitable utilization. Accelerate the technological integration of PACS and cooperative federations with national digital platforms, specifically the e-National Agriculture Market (eNAM) and the Government e-Marketplace (GeM). To transition PACS into autonomous, viable business entities, their financial foundation must be fortified

The Indian cooperative movement stands as a unique major structural solution to the challenge of achieving decentralized and inclusive self-reliance under Aatmanirbhar Bharat. The discussions as above demonstrate the model's unparalleled ability to drive self-sufficiency on a massive scale, even its transformative potential. The current policy focus—centered on the comprehensive transformation of PACS, the establishment of decentralized infrastructure like the Grain Storage Plan, and critical governance reforms through the MSCS Act 2023—is correctly targeted at addressing the systemic inefficiencies that have historically constrained the sector.

 

However, the continued success of this strategic alignment is dependent on resolving a critical policy tension: the paradox of scale versus autonomy. Centralized oversight, necessary for accountability and scaling reforms, must be carefully balanced to avoid eroding the local autonomy and democratic control (one member, one vote) that is fundamental to the cooperative ethos and its economic success. Maintaining the integrity of the 'System' pillar requires governance that promotes transparency without stifling grassroots initiative. By diligently implementing the prescribed legislative and capacity-building measures, particularly mandatory professionalization and accelerated digital literacy programs, the cooperative sector can solidify its position as the engine driving inclusive, self-reliant growth for a AB India.

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