Introduction to the National Cooperative Policy 2025
On July 24, 2025, Union Minister Amit Shah unveiled the National Cooperative Policy 2025 in New Delhi, marking a significant milestone in India’s journey toward inclusive and sustainable economic growth. This visionary policy, launched under the leadership of Prime Minister Narendra Modi, aims to revitalize the cooperative sector, positioning it as a cornerstone of India’s development model. By fostering collaboration, transparency, and technological integration, the policy seeks to empower millions of citizens, particularly in rural areas, to contribute to and benefit from India’s economic progress.
The cooperative sector, often overlooked in favor of corporate models, has been reinvigorated by this policy, which builds on the foundation laid by the first cooperative policy introduced in 2002 under the Atal Bihari Vajpayee government. The National Cooperative Policy 2025 is designed to address the unique needs of India’s diverse population, ensuring that economic growth is inclusive, equitable, and sustainable. With a focus on empowering individuals, fostering entrepreneurship, and integrating modern technology, this policy aims to make cooperatives a driving force in achieving India’s goal of becoming the world’s third-largest economy by 2027.
The Vision of Cooperative Prosperity
The core vision of the National Cooperative Policy 2025 is to achieve prosperity through cooperation, encapsulated in the motto “Sahakar Se Samriddhi” (Prosperity Through Cooperation). This vision aligns with India’s broader goal of becoming a developed nation (Viksit Bharat) by 2047, the centenary of India’s independence. The policy emphasizes a people-centric economic model that prioritizes the well-being, employment, and satisfaction of every citizen over mere GDP growth.
A People-Centric Economic Model
Unlike global economic models that often prioritize macroeconomic indicators like GDP and GDSP, the National Cooperative Policy 2025 places the individual at the heart of economic development. It recognizes that true economic progress is achieved when every citizen, regardless of their socio-economic background, is empowered to contribute to and benefit from the nation’s growth. This approach addresses the shortcomings of conventional economic models, which have often sidelined individual welfare in favor of aggregate growth metrics.
Empowering the Marginalized
The policy places a strong emphasis on uplifting marginalized communities, including rural women, Dalits, and tribal populations. By fostering cooperative enterprises in villages, the policy aims to provide these communities with access to resources, capital, and opportunities for economic participation. This inclusive approach ensures that the benefits of economic growth reach the 80 crore citizens who have historically been left behind in the race for development.
Historical Context: Building on a Legacy
The cooperative movement in India has a rich history, with the first National Cooperative Policy launched in 2002 under the leadership of the Bharatiya Janata Party (BJP) government. That policy laid the groundwork for recognizing the potential of cooperatives in driving economic and social development. However, the cooperative sector faced challenges, including outdated infrastructure, limited access to capital, and a lack of technological integration.
The establishment of the Ministry of Cooperation in 2021, under the visionary leadership of Prime Minister Narendra Modi, marked a turning point for the sector. Over the past four years, the ministry has worked tirelessly to rejuvenate cooperatives, transforming them into vibrant, competitive, and future-ready entities. The National Cooperative Policy 2025 builds on these efforts, introducing a comprehensive framework to address the sector’s challenges and unlock its potential.
Reviving a Declining Sector
In 2020, many economic experts dismissed the cooperative sector as a “dying sector.” However, the concerted efforts of the Ministry of Cooperation have reversed this perception. Today, cooperatives stand shoulder-to-shoulder with corporate entities in terms of priority, taxation benefits, and access to development funds. This transformation is a testament to the government’s commitment to making cooperatives a viable and sustainable economic model.
Key Pillars of the National Cooperative Policy 2025
The National Cooperative Policy 2025 is built on six key pillars designed to strengthen the cooperative ecosystem and ensure its long-term sustainability. These pillars address the structural, operational, and societal aspects of cooperatives, ensuring that they are professional, transparent, and technologically advanced.
1. Strengthening the Foundation of Cooperatives
The policy focuses on empowering grassroots cooperative units, particularly in rural areas. By providing access to resources, training, and capital, the policy aims to strengthen primary cooperative societies, ensuring that they are robust and capable of driving local economic growth.
2. Legal Flexibility and Resilience
To ensure the sustainability of cooperatives, the policy introduces legal reforms that provide flexibility in operations. If a cooperative unit fails, the policy facilitates its liquidation and the registration of new units, ensuring that no village or panchayat is left without a cooperative presence.
3. Promoting Vibrancy and Self-Reliance
The policy encourages the creation of dynamic and self-reliant cooperative ecosystems. By fostering innovation and entrepreneurship, it aims to make every cooperative unit a thriving entity capable of meeting future challenges.
4. Encouraging Inclusivity
Inclusivity is a cornerstone of the policy, with a focus on increasing the participation of women, youth, Dalits, and tribal communities in cooperative enterprises. By expanding membership and encouraging diverse representation, the policy ensures that cooperatives reflect the needs and aspirations of all sections of society.
5. Expanding into Emerging Sectors
The policy promotes the entry of cooperatives into emerging sectors such as healthcare, tourism, taxis, insurance, and green energy. By diversifying their operations, cooperatives can tap into new markets, create jobs, and contribute to sustainable development.
6. Building a Future-Ready Cooperative Ecosystem
To prepare cooperatives for the challenges of the 21st century, the policy emphasizes the integration of technology, transparency, and professional management. By leveraging digital platforms and data-driven decision-making, cooperatives can enhance their efficiency and competitiveness.
Achievements of the Cooperative Sector
The past four years have witnessed remarkable achievements in the cooperative sector, driven by the proactive efforts of the Ministry of Cooperation. These achievements have laid the foundation for the ambitious goals outlined in the National Cooperative Policy 2025.
Restoring Pride and Confidence
One of the most significant achievements of the cooperative sector is the restoration of pride and confidence among its members. Today, even the smallest cooperative unit stands tall with a sense of purpose and self-assurance, ready to compete with corporate entities on equal terms.
Digital Transformation
The computerization of Primary Agricultural Credit Societies (PACS) has revolutionized their operations, enhancing transparency and efficiency. The creation of a national cooperative database, complete with geo-mapping, has enabled better monitoring and resource allocation.
Model Cooperative Villages
The introduction of model cooperative villages, initiated by the National Bank for Agriculture and Rural Development (NABARD), has set a new benchmark for rural development. These villages serve as templates for integrating cooperatives into the rural economy, with plans to establish five model cooperative villages in every tehsil.
Expanding Cooperative Enterprises
Cooperatives have made significant strides in diverse sectors, including healthcare, retail, and renewable energy. For instance, over 4,108 PACS have been approved to operate Pradhan Mantri Jan Aushadhi Kendras, providing affordable medicines to rural communities. Similarly, 393 PACS have ventured into retail fuel distribution, and over 100 have secured LPG distributorships.
Empowering Women Through the White Revolution 2.0
The policy builds on the success of the White Revolution, which transformed India’s dairy sector through cooperatives like Amul. The White Revolution 2.0 aims to further empower women by increasing their participation in dairy cooperatives, creating new opportunities for economic independence.
The Role of Technology in Cooperatives
Technology plays a pivotal role in the National Cooperative Policy 2025, enabling cooperatives to operate efficiently and transparently in a rapidly changing world. The policy emphasizes the following technological interventions:
Digital Platforms for Visibility
The creation of digital platforms for cooperative societies will enhance their visibility and accessibility. These platforms will enable cooperatives to showcase their products and services, connect with consumers, and expand their market reach.
Transparent Management Systems
By leveraging technology, cooperatives can implement transparent management systems that ensure accountability and trust. This includes the use of data analytics, blockchain, and other emerging technologies to streamline operations and reduce inefficiencies.
Capacity Building Through Training
The policy emphasizes capacity building through digital training programs for cooperative members. By equipping them with the skills needed to navigate the digital economy, the policy ensures that cooperatives remain competitive and future-ready.
Addressing Socio-Economic Challenges
The National Cooperative Policy 2025 is not just an economic strategy; it is a social movement aimed at addressing the challenges faced by India’s most vulnerable populations. By empowering individuals and communities, the policy seeks to bridge the gap between urban and rural India, fostering a more equitable society.
Creating Economic Opportunities
For the 80 crore citizens who have benefited from government schemes such as free housing, electricity, gas cylinders, and healthcare, the policy offers a pathway to further economic empowerment. By providing access to capital and fostering entrepreneurship, cooperatives enable these individuals to pursue their aspirations, whether it’s buying a scooter for their daughter or installing an air cooler at home.
Reducing Economic Disparities
The policy addresses regional disparities in cooperative development by introducing a grading system (A, B, C) for states based on their cooperative ecosystem. Tailored action plans will be developed to strengthen cooperatives in underperforming states, ensuring balanced growth across the country.
Global Expansion and Competitiveness
The National Cooperative Policy 2025 also aims to position Indian cooperatives on the global stage. By fostering international partnerships and promoting exports, the policy seeks to make cooperatives a key player in the global economy.
National Cooperative for Exports
The establishment of a national cooperative for exports is a significant step toward expanding the global reach of Indian cooperatives. This initiative will enable cooperatives to access international markets, promoting products like organic goods and handicrafts.
Competing with Commercial Banks
Urban cooperative banks are being strengthened through the creation of an umbrella organization, ensuring that they can compete with commercial banks. By adopting modern technology and transparent practices, these banks will provide reliable financial services to their members.
Implementation and Monitoring
The successful implementation of the National Cooperative Policy 2025 depends on robust monitoring and evaluation mechanisms. The policy outlines 83 intervention points, of which 58 have already seen progress, with three fully completed and two ongoing. The remaining 22 points will be addressed in the coming years, ensuring that the policy’s goals are met.
State-Level Cooperation
The policy encourages states to develop their own cooperative policies aligned with the national framework. By tailoring strategies to their unique needs, states can maximize the impact of cooperatives on their local economies.
Monitoring and Evaluation
A cluster-based monitoring system will be established to track the performance of cooperative units. This system will ensure accountability, transparency, and continuous improvement, enabling cooperatives to adapt to changing economic conditions.
The Road Ahead: A Vision for 2047
The National Cooperative Policy 2025 is a forward-looking strategy that aims to transform the cooperative sector into a dynamic and integral part of India’s economy. By 2034, the policy aims to triple the cooperative sector’s contribution to India’s GDP, increase the number of cooperative societies by 30%, and make 50 crore citizens active members of cooperatives.
A Member-Centric Model
At its core, the policy is designed to prioritize the welfare of cooperative members. By focusing on their economic and social well-being, the policy ensures that cooperatives remain true to their founding principles of collaboration and mutual benefit.
Building a Legacy for Future Generations
The policy is not just about immediate gains; it is about creating a lasting legacy for future generations. By fostering a culture of cooperation, innovation, and inclusivity, the policy aims to make cooperatives a cornerstone of India’s economic and social fabric.
Conclusion
The National Cooperative Policy 2025 is a transformative initiative that redefines the role of cooperatives in India’s development journey. By empowering individuals, fostering inclusivity, and embracing technology, the policy paves the way for a more equitable and prosperous India. As the nation moves toward its goal of becoming a developed nation by 2047, the cooperative sector will play a pivotal role in ensuring that no citizen is left behind. Through collaboration, innovation, and a shared vision of prosperity, the National Cooperative Policy 2025 is set to shape a brighter future for India.