45,811 Cooperative Societies Under Liquidation in India
The Indian government recently revealed that a total of 45,811 cooperative societies out of the 8.32 lakh registered societies are currently under liquidation. The Minister of Cooperation, Amit Shah, provided these figures in a response to the Rajya Sabha, highlighting that as of March 2025, 6.37 lakh societies remain operational, while over 1.5 lakh are non-functional.
Cooperative Societies in Liquidation
“Out of the total 8,32,103 cooperative societies, 6,37,221 are functional, and 45,811 are under liquidation stage in India as of March 1, 2025,” Shah stated in his written reply. He also noted that a considerable number of societies, around 1.5 lakh, have ceased operations.
Government’s Efforts to Strengthen the Cooperative Sector
The government has been actively working to revitalize the cooperative sector since the formation of a separate Ministry of Cooperation in 2021. Several initiatives have been undertaken to strengthen the sector, including increased budget allocations in recent years. These initiatives aim to improve the efficiency and stability of the cooperative societies across India, fostering growth in rural and semi-urban areas where these institutions traditionally play a significant role.
Shah emphasized that the increased budget allocation over the past three years has had a positive impact, enabling the government to effectively implement key cooperative sector initiatives. These efforts are part of a broader plan to improve the functioning of cooperative societies, reduce the number of non-functional entities, and address the challenges faced by those in liquidation.
Impact on Rural Economies
The government’s focus on the cooperative sector is seen as part of its strategy to enhance economic resilience, particularly in rural economies that depend on such organizations for financial services, agricultural support, and other community-based initiatives.
