Union Minister Amit Shah unveils ambitious reforms on the Ministry of Cooperation’s fifth foundation day, launching a cooperative life insurer and expanding Bharat Taxi to 500 cities to empower rural economies and drive inclusive growth.

In a significant boost to India’s cooperative movement, Union Home and Cooperation Minister Amit Shah on July 6, 2026, outlined a comprehensive expansion strategy during the fifth foundation day celebrations of the Ministry of Cooperation. The announcements, including the establishment of a dedicated cooperative life insurance company and the nationwide scaling of the driver-owned Bharat Taxi platform, signal a renewed push towards professionalizing cooperatives, enhancing financial inclusion, and integrating them deeper into India’s economic fabric.

Shah emphasised that the past five years have been dedicated to identifying structural challenges and building a robust framework for long-term growth. With nearly 8.5 lakh cooperative societies and over 30 crore members, the sector already plays a pivotal role in key areas: handling about 20 per cent of agricultural credit, 35 per cent of fertilizer distribution, and 31 per cent of sugar production.

Strengthening insurance access through cooperatives

A flagship announcement was the decision to establish a cooperative life insurance company. This move aims to expand the sector’s footprint in insurance, building on the success of models like IFFCO-Tokio, a joint venture of the fertilizer cooperative IFFCO with a Japanese partner. Shah noted that the new entity would open fresh avenues for cooperatives while promoting financial security for rural and semi-urban populations often underserved by traditional insurers.

The initiative aligns with broader goals of deepening financial inclusion. Cooperatives, traditionally strong in agriculture, dairy, and fertilizers, are now diversifying into services that directly impact livelihoods. Industry observers see this as a step towards making insurance more accessible and community-driven, potentially increasing penetration in tier-2 and tier-3 cities.

Bharat Taxi: Empowering drivers and expanding mobility

Bharat Taxi, India’s first major cooperative-backed ride-hailing platform launched earlier in 2026, has shown promising early traction. Shah announced its expansion to 500 cities over the next two years, positioning it as a viable, driver-owned alternative in the mobility sector.

Unlike conventional aggregators, Bharat Taxi emphasises cooperative ownership, with drivers benefiting from profit-sharing models. Reports from its initial rollout highlight investments as low as ₹500 per driver, with potential returns tied to performance and platform earnings. This model aims to challenge market dominance by platforms like Ola and Uber while ensuring higher earnings retention for operators.

The expansion is expected to generate significant employment opportunities, particularly in rural and semi-urban areas, and promote sustainable mobility solutions. By scaling to 500 cities, the platform could serve millions, fostering a more equitable gig economy rooted in cooperative principles.

Bharat Beej and seed security

Complementing these initiatives, Shah highlighted plans to transform Bharat Beej Cooperative Society (Bharatiya Beej Sahakari Samiti Ltd or BBSSL) into India’s largest seed producer within three years. New production units will be set up across states to ensure farmers receive high-quality, certified seeds.

A key MoU was signed with the Indian Council of Agricultural Research (ICAR) to bolster seed systems. Tissue culture facilities were also inaugurated in Barabanki, Uttar Pradesh, and Jalgaon, Maharashtra, supporting advanced propagation techniques.

This focus on seeds addresses critical concerns around quality, availability, and affordability, while promoting organic farming practices. Shah stressed the importance of reducing chemical fertiliser dependency, citing successful circular economy models in sugar and dairy sectors that produce organic manure as a superior, cost-effective alternative to DAP.

Infrastructure, digitization, and governance reforms

The event featured several infrastructure launches, including the handover of 135 grain storage godowns (75,000 tonnes capacity), inauguration of 85 warehouses, and foundation laying for 47 more facilities. Sahakar Van projects by Amul and the National Cooperative Consumers’ Federation of India (NCCF) also received foundation stones.

Digitization efforts target 50,000 Primary Agricultural Credit Societies (PACS) to be converted into e-PACS, improving transparency, efficiency, and service delivery at the grassroots level. A nationwide database of cooperatives is being developed to aid policymaking.

Governance reforms emphasise professionalism. Tribhuvan Sahkari University will train experts in banking, dairy, marketing, and other areas, with merit-based appointments to phase in professional management from primary to apex levels. Model bye-laws for dairy cooperatives were released, alongside a publication documenting the ministry’s achievements.

Nine national-level cooperative societies now span diverse sectors, with Shah expressing confidence they will evolve into globally competitive institutions like Amul, NDDB, IFFCO, and KRIBHCO.

Rural economy and vision 2047

Union Minister for Fisheries, Animal Husbandry, and Dairying Rajiv Ranjan Singh highlighted synergies with the livestock sector. India remains the world’s largest milk producer, with 248 million tonnes in 2024-25. The Animal Husbandry Infrastructure Development Fund has mobilized substantial investments, creating additional processing capacity.

Shah urged dairy federations to increase milk-producing farmers by 35 per cent in two years through new PACS and societies. Cooperatives are also facilitating exports of agricultural produce, connecting villages to global markets. He reaffirmed that the Centre’s role is limited to policy, respecting state jurisdictions, with no complaints of overreach even from opposition-ruled states.

These measures are positioned as key contributors to India’s developed nation status by 2047, with cooperatives serving as pillars of prosperity and self-reliance.

Challenges and broader impact

While the announcements have been widely welcomed for their potential to revitalize rural economies, experts point to implementation challenges, including funding, state coordination, and competition in sectors like ride-hailing and insurance. Success will depend on effective execution, technological integration, and sustained member participation.

Experts say that the cooperative sector’s revival under the dedicated ministry has already yielded results, with increased exports, digital transactions via common ERP platforms, and empowerment of women and youth. As India navigates economic complexities, these community-centric models offer a balanced path to growth that prioritizes equity alongside efficiency.