The Indian government plans to establish a cooperative life insurance company as part of its efforts to expand the cooperative sector into financial services and strengthen the broader cooperative ecosystem.
Announcing the initiative at the fifth Foundation Day of the Ministry of Cooperation, Union Cooperation Minister Amit Shah said the proposed insurer would support the government's strategy of extending cooperatives beyond their traditional focus on sectors such as dairy, sugar and fertilisers.
Mr Shah said the new insurer would help drive the growth of cooperatives in the insurance sector, noting that the Indian Farmers Fertiliser Cooperative (IFFCO) has already established a presence in insurance through a joint venture with a Japanese partner.
The proposed insurer is expected to build on this experience as the government broadens the role of cooperatives in financial services.
Mr Shah also announced that the government's Bharat Taxi initiative will be expanded to 500 cities over the next two years, citing its strong early performance as an example of how cooperatives are diversifying into new sectors beyond their traditional base.
India is home to around 850,000 cooperative societies with a combined membership of more than 300m, making it one of the world's largest cooperative networks.
Reflecting on the Ministry of Cooperation's progress since its establishment in 2021, he said a series of reforms had been introduced to strengthen governance, transparency and professionalism across the cooperative sector, while broadening its role in emerging industries, including financial services.