Cooperative Sector’s Expansive Role in National Economy Highlighted: No Separate GDP Data Maintained Yet

New Delhi- The Ministry of Cooperation has clarified that there is currently no separate database maintained to assess the cooperative sector’s contribution to the national or state-level Gross Domestic Product (GDP). Despite this, data from the Statistical Profile-2018 on the Indian Cooperative Movement—published by the National Cooperative Union of India (NCUI)—offers valuable insights into the estimated share of cooperatives across various sectors of the Indian economy.

As per the report, cooperatives play a pivotal role in sectors ranging from agriculture and fertilizers to sugar, dairy, and fisheries. Notably:

• Agricultural Credit: Cooperatives disbursed 13.4% of total agricultural credit in 2016–17. Specifically, 19.13% of short-term agricultural credit to small and marginal farmers came through cooperatives.

• Kisan Credit Cards: By March 2017, 67.3% of Kisan Credit Cards were issued by cooperative and regional rural banks, with 50.2% attributed to cooperatives alone.

• Fertilizers: Cooperatives distributed an estimated 35% of fertilizers and contributed 28.8% of total fertilizer production in 2016–17.

• Sugar Industry: Cooperative sugar factories accounted for 38.63% of total installed units, producing over 30.6% of the country’s sugar output.

• Dairy Sector: Cooperatives marketed an impressive 84.17% of liquid milk they procured, demonstrating a strong link between rural procurement and urban supply chains.

Other key contributions include:

• Wheat Procurement: 13.3%

• Paddy Procurement: 20.4%

• Fair Price Shops (urban + rural): 20.3%

• Storage Facilities (PACS level): 55.5% of village-level storage is managed by cooperatives

• Employment Generation: 13.3% direct employment and 10.91% self-employment generated via cooperatives

In the fisheries sector, 20.05% of active fishermen are engaged through cooperatives.

The data, while dated to 2016–2018, highlights the deep-rooted integration of cooperatives in India’s socio-economic fabric, especially in rural empowerment, food security, and supply chain resilience.

In a written reply to a question in the Lok Sabha,

Minister of Cooperation Amit Shah further informed that the government is using PFMS (Public Financial Management System) to track fund utilization and ensure real-time expenditure reporting across Central Sector Schemes. PFMS enables last-mile tracking and just-in-time release of funds through modules like EAT (Expenditure Advance Transfer) and platforms such as SNA, CNA, and TSA.

The Ministry emphasized that registration on PFMS is mandatory for all implementing agencies of Central Schemes, ensuring financial transparency and better governance in scheme execution.