Introduction

• Union Home and Cooperation Minister Amit Shah launched the new National Cooperative Policy 2025, replacing the old 2002 policy after 23 years.

• It aligns with the vision “Sahkar se Samriddhi” (Prosperity through Cooperation).

• The policy aims to modernise, expand, and make the cooperative sector inclusive, transparent, and tech-driven over the next 20 years.

 Background and Political Context

• India has over 8.4 lakh cooperative societies, reaching 31 crore people, especially in Maharashtra and Gujarat.

• In 2021, the Ministry of Cooperation was established to strengthen this sector.

• The new policy aims to increase cooperatives by 30%, expanding them into underrepresented states like Uttar Pradesh and Bihar.

 Vision and Goals

• Increase the cooperative sector’s GDP contribution threefold by 2034.

• Establish at least one cooperative society in every village.

• Ensure 50 crore people actively participate in cooperatives.

• Strengthen self-reliance and local economic activity.

 Six Pillars of the Policy

1. Strengthening foundational systems – legal, financial, and institutional frameworks.

2. Promoting vibrancy – revamping and energising existing cooperatives.

3. Preparing for future challenges – through digital tools and innovation.

4. Enhancing inclusivity – involving women, youth, and marginalised groups.

5. Expanding into new sectors – like tourism, green energy, and insurance.

6. Youth engagement and capacity building – training next-generation cooperative leaders.

 Key Initiatives and New Areas of Focus

• Support for cooperatives in non-traditional sectors:

  • Green energy

  • Tourism

  • Sahkar Taxi services

  • Insurance

• PACS (Primary Agricultural Credit Societies) can now:

  • Run fuel stations, LPG services, Jan Aushadhi Kendras, and CSCs

  • Implement schemes like Har Ghar Jal and PM Surya Ghar Yojana

 Model Cooperative Villages

• Every tehsil will develop five model cooperative villages in partnership with NABARD and state cooperative banks.

• These villages will focus on:

  • Dairy, fishery, floriculture, agri-services

  • Promoting women and tribal participation under White Revolution 2.0

 Institutional Reforms and Technology Integration

• Full computerisation of PACS operations.

• Technology-based governance for accountability and transparency.

• Cluster monitoring systems for better tracking and coordination.

• Review of cooperative laws every 10 years to remain up-to-date.

• Establishment of Tribhuvan Sahkari University for professional training.

• Of the 83 reform points identified, 58 are under implementation, and 3 are completed.

 Economic Contributions of Cooperatives (as of 2025)

• 20% of agricultural credit

• 35% of fertiliser distribution

• 30% of sugar and 10% of milk production

• 21% of fishery sector

• 13% of wheat and 20% of paddy procurement

 Challenges

• Regional imbalance: Dominance in western states; weak presence in northern and eastern states.

• Poor governance in many cooperatives due to politicisation and lack of professionalism.

• Low awareness and participation among youth and women.

• Lack of modern technology and digital tools in rural cooperatives.

• Limited financial autonomy and dependence on state funding.

• Legal complexity due to overlapping central and state laws.

 Way Forward

• Ensure uniform cooperative laws and better Centre-State coordination.

• Provide training and capacity building to cooperative leaders and members.

• Promote digitalisation and financial literacy at the grassroots.

• Encourage women and youth participation to make cooperatives future-ready.

• Increase transparency and accountability through audits and governance reforms.

• Expand cooperatives in underserved sectors and regions, ensuring inclusive growth.

 Conclusion
The National Cooperative Policy 2025 is a bold step to transform India’s cooperative movement into a vibrant, inclusive, and tech-enabled system. It seeks to make cooperatives the engine of rural development, self-reliance, and economic democracy.