Modi's ₹2,000 Crore Grant to Fuel Cooperative Growth

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Central Sector Scheme “Grant-in-Aid to the National Cooperative Development Corporation (NCDC)” with a total outlay of ₹2,000 crore for the period 2025–26 to 2028–29 (₹500 crore per year).

This grant will empower NCDC to mobilize up to ₹20,000 crore from the open market over four years, enabling it to extend loans to cooperative societies for new projects, capacity expansion, modernization, technology upgrades, and working capital requirements. The scheme is expected to benefit approximately 2.9 crore members across 13,288 cooperatives in sectors including dairy, fisheries, sugar, textiles, food processing, cold storage, labour, and women-led cooperatives.

NCDC will oversee loan disbursement, monitoring, and recovery, either directly or through state governments. The initiative aims to boost productivity, profitability, and employment, while strengthening the liquidity position of cooperatives and creating income-generating assets.

With over 8.25 lakh cooperatives and 29 crore members nationwide, the scheme is poised to make a significant impact—particularly in high-priority sectors such as dairy, poultry, fisheries, and women-led enterprises—contributing to inclusive and sustainable economic growth.

News by Rahul Yelligetti.