India intends to establish a cooperative society in every rural settlement, encompassing approximately 500 million individuals.
India Unveils National Cooperative Policy 2025 to Modernize Rural Economy
India has taken a significant step forward in its quest for rural development and grassroots prosperity with the unveiling of the National Cooperative Policy 2025. The policy, announced by Union Minister Amit Shah, aims to modernize, professionalize, and expand the cooperative sector over the next 20 years (2025-2045).
The policy, which was crafted after extensive consultations with over 600 stakeholders and expert committees, focuses on establishing at least one cooperative society in every village. By 2026, plans are in place to set up about 2 lakh new multi-purpose Primary Agricultural Credit Societies (PACS).
The policy also seeks to leverage innovation, modern technology, and youth energy to revitalize the sector. Digitisation of cooperative operations and strengthening governance are key strategies to improve management and accountability.
The policy intends to bring around 500 million citizens, including rural women, Dalits, and Tribals, under the cooperative umbrella to foster inclusive growth. Key sectors like farming, dairy, fisheries, and banking will be boosted through cooperative growth and modern practices.
The ultimate goal is to enable cooperative organizations to play a key role in India becoming a developed nation by 2047. The policy promotes autonomy, transparency, ease of doing business, good governance, and a level playing field for cooperatives.
India currently has more than 8 lakh cooperative societies, comprising around 2 lakh credit cooperatives and 6 lakh non-credit cooperatives. The policy aims to create a conducive legal and regulatory environment for cooperatives, encouraging the development of a co-op business ecosystem, including access to international markets and increasing farmers' income.
The policy also seeks to make cooperative organizations professional, transparent, equipped with technology, and financially independent. It encourages an ecosystem for skilling and upskilling of youth and women for employment in the sector.
The National Cooperation Policy - 2025 has been prepared by a 48-member national-level committee headed by former Union Minister Suresh Prabhu. The policy intends to transform cooperatives into professionally managed economic entities based on co-op principles. It aims to reform and revamp various dimensions of the cooperative sector, making cooperatives future-ready by enhancing technology adoption for efficient and transparent management.
Union Minister Amit Shah urged the states to start implementing the new policy at the earliest. The policy encourages the entry of cooperatives in emerging sectors and aims to enhance cooperation among cooperatives, strengthen the co-operative structure, and expand geographical reach.
This latest policy announcement comes 23 years after a similar policy for cooperatives was introduced in 2002. The policy seeks to triple the cooperative sector's GDP contribution by 2034 and aligns with the vision of "Sahkar Se Samriddhi" (prosperity through cooperation) and broader national goals like Viksit Bharat 2047 (developed India by 2047).
(with Inputs from PTI)
- The National Cooperative Policy 2025, recently unveiled by Union Minister Amit Shah, intends to expand the cooperative sector with the help of technology and financial independence.
- The policy aims to bring around 500 million citizens under the cooperative umbrella, particularly focusing on rural women, Dalits, and Tribals, for promoting inclusive growth in the economy.
- India's objective is to transform cooperatives into professionally managed entities based on co-op principles, ensuring they are equipped with modern technology for efficient management.
- With the National Cooperative Policy 2025, there are plans to set up about 2 lakh new multi-purpose Primary Agricultural Credit Societies (PACS) to modernize and professionalize the sector.
- The policy encourages the development of a co-op business ecosystem, including access to international markets, as part of its mission to triple the cooperative sector's GDP contribution by 2034.
