Context:
The National Cooperative Policy, 2025, launched by Union Home and Cooperation Minister Amit Shah in July, has triggered a strong backlash from Kerala, a State with a deep-rooted cooperative movement. The policy has intensified Centre-State tensions over cooperative federalism and the constitutional division of powers.
What is it?
- A forward-looking, result-oriented policy to institutionalise, expand, and modernise India’s cooperative sector.
- Aims to make cooperatives key drivers of social equity, rural empowerment, and economic sustainability.
Objectives:
- Triple the cooperative sector’s share in GDP by 2034.
- Ensure participation of 50 crore members across India.
- Establish at least one cooperative in every village.
- Enhance transparency, financial sustainability, and digital adoption.
- Empower rural women, tribals, Dalits, and youth.
- Build a self-reliant, employment-rich cooperative ecosystem by 2047.
Key Features:
- Inclusive and Village-Centric Focus
- Focus on villages, agriculture, rural women, Dalits, and tribals.
- Creation of 5 model cooperative villages per tehsil.
- PACS (Primary Agricultural Credit Societies) to act as hubs for rural services like Jan Aushadhi, LPG, water supply schemes.
- Expansion and Modernisation of Cooperatives
- 30% increase in cooperative societies.
- 45,000 new PACS being implemented.
- New cooperatives in taxi, tourism, green energy, and insurance sectors.
- Launch of ‘Sahkar Taxi’ for driver-centric profit sharing.
- Digital Transformation & Transparency
- Computerisation of PACS and tech-enabled governance.
- Cluster-based monitoring and real-time data systems.
- Legal framework to be updated every 10 years.
- Youth and Women Empowerment
- Employment & skill development via Tribhuvan Sahkari University.
- White Revolution 2.0 to strengthen dairy cooperatives with women participation.
- Promotion of youth-driven cooperative entrepreneurship.
- Sectoral Diversification
- Entry into tourism, logistics, insurance, and green energy.
- Establishment of three multi-state cooperative societies:
- National Cooperative Exports Ltd
- National Seed Cooperative
- National Organic Products Marketing Cooperative
- Sustainability & Global Outreach
- Adoption of environmental principles and circular economy models.
- Global market integration via National Cooperative Export Ltd.
- Active role in the International Year of Cooperatives through grassroots programs.
What are Cooperatives?
Cooperatives are voluntary, democratic, and member-owned organisations formed by individuals with a common economic, social, or cultural interest. They work on the principle of “mutual help” rather than profit maximisation, where members own, control, and benefit from the organisation collectively.
