From Finance to Enterprise: How NCDC Is Building a New Engine for Cooperative Growth

India’s cooperative sector is entering a new phase—one in which access to finance is increasingly being combined with enterprise creation, innovation, technology, skills and stronger market linkages. At the centre of this transition is the National Cooperative Development Corporation (NCDC), which is expanding its role from a financing institution to an enabler of a broader cooperative ecosystem.

The scale of this transformation is reflected in NCDC’s FY 2025–26 performance. The institution sanctioned financial assistance of ₹1,55,362 crore and disbursed ₹1,27,598 crore, supporting 14,864 cooperative societies and reaching more than 1.86 crore members. But the larger story lies beyond the headline numbers.

From financing cooperatives to creating enterprises

NCDC is helping create new avenues for cooperative-led growth across emerging areas such as mobility, exports, organics and quality seeds. As a founding member, it is supporting new cooperative enterprises including Bharat Taxi, NCEL, NCOL and BBSSL—signalling a shift towards cooperatives becoming larger participants in organised economic activity.

This approach is important because the future of the cooperative movement will depend not only on how much capital reaches societies, but also on how effectively that capital translates into sustainable businesses, stronger value chains and better market access.

The expansion is also visible geographically. NCDC now has 19 regional offices and nine satellite offices, with the latter covering six locations in the North-East, Ladakh, Jammu, Sikkim and a new regional office in Vijayawada. The objective is straightforward: bring financial assistance and developmental support closer to cooperatives, particularly in remote and underserved regions.

Putting innovation on the cooperative agenda

Another emerging priority is innovation.

Through the Sahakar Innovation Scheme, cooperatives can access grants of up to ₹25 lakh. The initiative is designed to encourage cooperatives to develop innovative projects, diversify their activities and identify new opportunities for sustainable growth.

For a sector traditionally associated with agriculture, dairy, credit and rural livelihoods, such initiatives can potentially broaden the definition of what a modern cooperative can be—particularly as new business models and technologies reshape rural markets.

Finance that is scaling with demand

NCDC’s financial assistance has grown at an approximate 40% CAGR over the past five years, reflecting the increasing scale and reach of cooperative finance.

The numbers also point to the diversity of sectors being supported. During 2025–26, NCDC assisted 17,964 dairy cooperatives, supporting the next phase of the White Revolution. It also disbursed ₹10,005 crore to 56 cooperative sugar mills for modernisation and expansion.

At the grassroots level, the focus extends to Farmer Producer Organisations (FPOs) and Primary Agricultural Credit Societies (PACS). NCDC supported the formation and promotion of 1,863 FPOs, while 1,000 PACS were strengthened.

Together, these interventions indicate a wider strategy: strengthen institutions at different points of the rural economy so that producers, farmers and cooperative members can participate more effectively in organised markets.

Building capability, not just capacity

Capital alone cannot create sustainable enterprises. Recognising this, NCDC has also placed emphasis on training and institutional capacity.

Through the Laxmanrao Inamdar National Academy for Cooperative Research and Development (LINAC) and its Regional Training Centres, 227 training programmes were conducted in 2025–26, training 21,688 participants.

This investment in human capability is critical as cooperatives take on more sophisticated functions—from managing larger businesses and adopting technology to accessing new markets and competing in increasingly formalised value chains.

A broader role for the cooperative economy

The evolution of NCDC comes at a time when cooperatives are being viewed not merely as instruments of rural development, but as potential engines of enterprise, employment and inclusive economic growth.

The institution’s FY 2025–26 performance suggests that the next chapter of cooperative development is being built around three interconnected priorities: access to capital, institutional capability and market-oriented enterprise creation.

Its work across mobility, exports, organics, seeds, dairy, sugar, FPOs and PACS reflects an attempt to create a more diversified cooperative economy.

The significance of this shift extends beyond individual cooperative societies. A stronger cooperative ecosystem can potentially give millions of members a larger stake in formal markets and emerging economic opportunities.

For NCDC, therefore, the ambition is no longer simply about financing cooperatives. It is about helping them become stronger, more capable and more competitive economic institutions. That is the larger promise behind the cooperative growth story: stronger cooperatives can create stronger rural enterprises—and, in turn, contribute to a more self-reliant and prosperous India.