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National Cooperative Policy, 2025

July 25, 2025 en

Brief Context

Context The Union Ministry of Cooperation unveiled the National Cooperation Policy – 2025, marking a transformative moment in the history of India’s cooperative movement. What are Cooperatives? A cooperative (or co-op) is an organization or business that is owned and operated by a group of individuals who share a common interest, goal, or need.

Source Content

Syllabus: GS2/ Governance, GS3/ Economy

Context

The Union Ministry of Cooperation unveiled the National Cooperation Policy – 2025, marking a transformative moment in the history of India’s cooperative movement.

About

India’s first National Cooperation Policy was introduced in 2002.
The second cooperation policy in 2025, represents a renewed commitment to making cooperatives competitive, inclusive, and future-ready.
Pillars of the National Cooperation Policy, 2025:
- Strengthening the Foundation
- Promoting Vibrancy
- Preparing Cooperatives for the Future
- Enhancing Inclusivity and Expanding Reach
- Expanding into New Sectors
- Preparing the Younger Generation
Objectives of the Policy:
- Triple the cooperative sector’s contribution to GDP by 2034.
- Increase cooperative societies by 30% from the current 8.3 lakh.
- Bring 50 crore new or inactive citizens into active cooperative participation.
- Establishment of at least one cooperative unit in every village & set up 5 Model Cooperative Villages in every tehsil, supported by NABARD.
- Establish PACS or primary cooperative units in every panchayat.

What are Cooperatives?

A cooperative (or co-op) is an organization or business that is owned and operated by a group of individuals who share a common interest, goal, or need.
These individuals, known as members, participate in the cooperative’s activities and decision-making process, typically on a one-member, one-vote basis, regardless of the amount of capital or resources each member contributes.
The main purpose of a cooperative is to meet the economic, social, or cultural needs of its members, rather than to maximize profits for external shareholders.

Cooperatives as India’s Economic Backbone

Cooperatives empower small farmers, artisans, fishermen, women, and labourers by giving them collective bargaining power.
- Example: Amul has uplifted millions of dairy farmers, many of whom are landless or marginal farmers.
Strengthening Rural Economy: Over 65% of India’s population lives in rural areas. Cooperatives provide credit, inputs, marketing, and infrastructure support.
- PACS (Primary Agricultural Credit Societies) are the first point of credit delivery in rural India.
Promoting Self-Reliance: Cooperatives reduce dependence on middlemen and large corporations by pooling local resources for production, processing, and marketing.

97th Constitutional Amendment Act 2011

– It established the right to form cooperative societies as a fundamental right (Article 19).
– It included a new Directive Principle of State Policy on the Promotion of Cooperative Societies (Article 43-B).
– It added a new Part IX-B to the Constitution titled “The Co-operative Societies” (Articles 243-ZH to 243-ZT).
– It authorizes the Parliament to establish relevant laws in the case of multi-state cooperative societies (MSCS) and state legislatures in the case of other cooperative societies.

Initiatives Taken by Government

The government has laid the foundation stone for India’s first national-level cooperative university, ‘Tribhuvan Sahkari University’ (TSU), in Anand, Gujarat.
The Model Cooperative Village (MCV) programme, has been implemented by the National Bank for Agriculture and Rural Development (NABARD) in selected villages of Gujarat.
The Ministry of Cooperation in India was established in 2021, to provide a renewed focus on the Cooperative Sector.
Empowerment of Scheduled Cooperative Banks, treating them on par with commercial banks.
Launch of ‘Sahkar Taxi’ to ensure profit-sharing with drivers.
Establishment of three national-level multi-state cooperative societies for, Export promotion, Seed production and Branding and marketing of organic products.
Initiatives like White Revolution 2.0, with a focus on women’s participation.
Expansion of PACS into Jan Aushadhi Kendras, fuel distribution, LPG delivery, and rural infrastructure services.

Concluding Remarks

The National Cooperation Policy, 2025 is a visionary step to mainstream cooperatives as engines of inclusive and sustainable development.
As India approaches its centenary of independence in 2047, a reformed cooperative sector could be key to achieving the vision of Aatmanirbhar Bharat.

Source: PIB