Cabinet Injects ₹2,000 Crore Lifeline into Rural Cooperatives
The Union Cabinet on July 31, 2025, approved a significant ₹2,000 crore grant to the National Cooperative Development Corporation (NCDC) over the next four years. This injection of funds is aimed at bolstering the rural economy.
The grant will empower NCDC to leverage an additional ₹20,000 crore in loans for cooperative societies across the nation. This translates to substantial credit support for millions of farmers and rural entrepreneurs.
NCDC’s impressive 99.8% loan recovery rate underscores the financial prudence and effectiveness of its operations. The organisation currently serves over 8.25 lakh cooperatives, representing a vast network of 29 crore members.
This substantial financial boost promises to significantly enhance credit access for India’s vast cooperative sector, directly impacting the livelihoods of millions and strengthening the rural economy. The move is expected to contribute to increased agricultural productivity and rural development initiatives.
