National Cooperative Policy, 2025
Context
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The Union Ministry of Cooperation unveiled the National Cooperation Policy – 2025, marking a transformative moment in the history of India’s cooperative movement.
About
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First Policy: India’s first National Cooperation Policy was introduced in 2002.
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Second Policy: The 2025 Policy represents a renewed commitment to making cooperatives competitive, inclusive, and future-ready.
Pillars of the Policy:
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Strengthening the Foundation
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Promoting Vibrancy
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Preparing Cooperatives for the Future
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Enhancing Inclusivity & Expanding Reach
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Expanding into New Sectors
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Preparing the Younger Generation
Objectives:
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Triple the cooperative sector’s contribution to GDP by 2034.
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Increase cooperative societies by 30% from the current 8.3 lakh.
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Bring 50 crore new or inactive citizens into active cooperative participation.
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Establish at least one cooperative unit in every village & set up 5 Model Cooperative Villages in every tehsil (supported by NABARD).
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Establish PACS or primary cooperative units in every panchayat.
What are Cooperatives?
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A cooperative is an organization/business owned and operated by a group of individuals who share a common interest or goal.
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One-member, one-vote principle: Equal participation in decision-making regardless of capital contribution.
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Purpose: To meet the economic, social, or cultural needs of members rather than to maximize profits for external shareholders.
Cooperatives as India’s Economic Backbone
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Empowerment: Small farmers, artisans, fishermen, women & labourers gain collective bargaining power.
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Example: Amul uplifted millions of dairy farmers, many landless or marginal.
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Strengthening Rural Economy: Over 65% of India’s population lives in rural areas; cooperatives provide credit, inputs, marketing & infrastructure.
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Example: PACS are the first point of credit delivery in rural India.
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Promoting Self-Reliance: Reduces dependence on middlemen & large corporations by pooling local resources for production, processing & marketing.
97th Constitutional Amendment Act, 2011
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Made the right to form cooperative societies a fundamental right (Article 19).
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Added Directive Principle of State Policy on promotion of cooperatives (Article 43B).
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Added Part IX-B to the Constitution: “The Cooperative Societies” (Articles 243-ZH to 243-ZT).
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Authorized Parliament to make laws for multi-state cooperatives & state legislatures for other cooperatives.
Government Initiatives
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National Cooperative University: Foundation laid for ‘Tribhuvan Sahkari University (TSU)’ in Anand, Gujarat.
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Model Cooperative Village (MCV): Implemented by NABARD in selected villages of Gujarat.
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Ministry of Cooperation: Established in 2021 to focus on the sector.
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Empowerment of Scheduled Cooperative Banks: Treating them on par with commercial banks.
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Sahkar Taxi: Launched for profit-sharing with drivers.
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Three national-level multi-state cooperative societies: For export promotion, seed production, and branding & marketing of organic products.
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White Revolution 2.0: Focus on women’s participation.
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Expansion of PACS: Into Jan Aushadhi Kendras, fuel distribution, LPG delivery, and rural infrastructure services.
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