National Cooperation Policy-2025
 
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National Cooperation Policy-2025

Wed 10 Jun, 2026

Context:

  • The first meeting of the National Level Policy Implementation and Monitoring Committee, constituted under the National Cooperation Policy-2025, was organized in New Delhi.

Key Points:

  • Meeting Chaired by: Dr. Ashish Kumar Bhutani, Secretary of the Ministry of Cooperation and Chairman of the Committee.
  • Whole-of-Government Approach: For the successful implementation of the policy, a coordinated action plan was discussed with various ministries such as Center, States/UTs, Panchayati Raj, Rural Development, Agriculture, and Farmers Welfare.
  • Digital Transformation: To bring transparency and speed to the cooperative sector, special emphasis was laid on strengthening the National Cooperative Database, Cooperative Ranking Framework, and data-driven monitoring mechanisms.
  • Capacity Building and Education: Reviewed the institutionalization of cooperative education, research, and training through the "Tribhuvan" Cooperative University.
  • Innovation and Inclusiveness: Emphasis was placed on promoting startup culture in the cooperative sector, connecting youth, and ensuring the participation of women and small farmers.

National Cooperation Policy 2025:

  • Launch: July 2025, by Union Home and Cooperation Minister Amit Shah.
  • Main Objective: To establish at least one professional, financially independent, and transparent cooperative organization in every village of India.

Policy Vision and Goal:

Aspect Description
Vision "Prosperity through Cooperation" (Sahkar se Samriddhi)
Main Goal Decisive participation of the cooperative sector in making India a developed nation by 2047
Mission To promote technology-enabled, professional, responsive, and economically strong cooperative units

Key Targets:

Objective Target
Contribution to GDP Three-fold increase by 2034
Cooperative Members 50 crore active members
New Societies 30% increase, at least 1 cooperative unit in every village
Employment Career opportunities for youth in the cooperative framework
Model Villages 5 model cooperative villages in every Tehsil

Focus Areas:

  • Village and agriculture-based cooperatives
  • Participation of women, tribals, and Dalits
  • New sectors like Taxi, Tourism, Insurance, and Green Energy
  • Multi-functional model of PACS (e.g., Fuel, Pharmacy, LPG distribution)
  • Global Marketing and Export Cooperatives

Features of the Policy:

Area Description
Empowerment of the Foundation Enhancing the internal capacity and autonomy of institutions
Digital Transformation Computerization of PACS, transparent MIS system
Human Resource Development Establishment of "Tribhuvan Cooperative University"
Monitoring System Cluster-based monitoring and performance audit
Member-Centric Model The core of the policy is – Member's welfare and self-esteem

Institutional Framework and Reforms:

  • 83 Intervention Points: Out of which work has been completed on 58.
  • Reforms in Laws: Provision to update every 10 years.
  • Model Byelaws: Adopted by all states.

Financial and Global Outlook:

  • Scheduled Cooperative Banks given status equivalent to commercial banks.
  • Establishment of Export Cooperatives $\rightarrow$ Access of Indian cooperative products to the global market.
  • Making PACS active in fuel, pharmacy, solar energy, seed distribution, etc.

Future Plans:

  • ‘Sahkar Taxi’ scheme (Direct benefit to the driver)
  • White Revolution 2.0 $\rightarrow$ Increasing women's participation in the dairy sector
  • At least 1 PACS in every Panchayat
  • Completion of the computerization process for all societies

Social and Inclusive Development:

Target Group Contribution / Role
Women White Revolution, employment, PACS operations
Youth Career in cooperation, startup model
Rural Economic empowerment and local employment
Dalit/Tribal Ensuring participation on a priority basis

Cooperative Society:

  • It is a voluntary association where people come together collectively to meet their economic, social, and cultural needs, and operate the institution in a democratic manner.

Cooperative Movement in India:

  • The Cooperative Movement in India is a socio-economic movement aimed at protecting the economic interests of weaker sections such as farmers, laborers, artisans, milk producers, etc., by bringing them together.
  • This movement is based on the principle of "Sahkar se Samriddhi" (Prosperity through Cooperation).
Year / Period Important Event / Phase Description
1904 Cooperative Credit Societies Act First cooperative law in India, legal recognition to cooperative societies
1912 Cooperative Societies Act Marketing, handloom, and artisan societies were included
1914 Maclagan Committee Report Proposed a three-tier cooperative banking system
1919 Government of India Act (Montagu-Chelmsford Reforms) Made cooperation a provincial subject and gave states the power to make laws
1925 Bombay Cooperative Societies Act First provincial cooperative law
1945 Cooperative Planning Committee Formed Reviewed the role and management of cooperation for economic planning
1963 National Cooperative Development Corporation (NCDC) Financial assistance for the development of cooperative societies
1981 Establishment of NABARD Support for rural development and cooperative credit system
2002 National Policy on Cooperatives Policy framework for the cooperative sector

Types of Cooperative Societies:

In addition, cooperative societies exist at multiple levels:

  • Primary Cooperative Societies: Work at the local level
  • Central Cooperative Societies: At the district or regional level
  • State Cooperative Societies: At the state level
  • Multi-State Cooperative Societies: Societies operating across multiple states

Key Organizations:

Organization Main Function
NAFED Agricultural marketing and export
IFFCO Fertilizer production
KRIBHCO Fertilizer production
AMUL (GCMMF) Dairy products
NCUI Training and promotion
NCDC Providing financial assistance

Cooperation in the Constitution:

  • Cooperation is recognized as an important and structurally sound institution in the Constitution.
  • Cooperatives were granted constitutional status through the 97th Constitutional Amendment Act, 2011.
  • Before this, cooperative societies were merely legal entities, but now they enjoy constitutional protection.

97th Constitutional Amendment Act, 2011:

This amendment became effective from October 12, 2011. Three main changes were made through this Act:

Amended Part Description
Part III (Fundamental Rights) "Right to form cooperative societies" was added to Article 19(1)(c). Now it is a Fundamental Right.
Part IV (Directive Principles of State Policy) Article 43-B was added - "The State shall endeavor to promote voluntary formation, democratic control, and professional management of cooperative societies."
Part IX-B (Newly Added) Clear provisions regarding the management, elections, tenure, audit, etc., of cooperative societies were added from Article 243-ZH to 243-ZT.

Key Features of Part IX-B (Article 243ZH to 243ZT):

  • Democratic Election: Mandatory to conduct timely, free, and fair elections every 5 years.
  • Number of Members: Maximum number of board members fixed at 21.
  • Reservation: Reservation on the board for Scheduled Castes/Scheduled Tribes and women.
  • Tenure: The tenure of the elected board of cooperative societies shall be a maximum of 5 years.
  • Supersession: Clear conditions for the suspension of the board — generally not exceeding 6 months.
  • Audit: Mandatory annual audit by registered auditors.
  • Robust Structure: The autonomy, transparency, and accountability of the societies received strength from the Constitution.

Cooperation - A State Subject:

  • Cooperation is included in the 'State List' of the Seventh Schedule of the Constitution. Therefore, making laws related to cooperative societies is the right of the State Legislatures.
  • Meanwhile, Multi-State Cooperative Societies come under the Center, on which the Parliament can make laws.

Tribhuvan Sahkari University (TSU):

  • It is India's first National Cooperative University.
  • It has been declared an 'Institution of National Importance'.
  • Foundation Stone: July 2025, by Union Cooperation and Home Minister Amit Shah.
  • Location: Anand, Gujarat.
  • Passed in Lok Sabha: March 26, 2025; Passed in Rajya Sabha: April 1, 2025.
  • Naming: This university is named after Tribhuvandas Kishibhai Patel, the pioneer of the cooperative movement in India and the founder of 'AMUL'.
  • Nodal Ministry: This university functions under the Ministry of Cooperation.

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