National Cooperation Policy (Governance)
National Cooperation Policy (Governance)
Why In News:
The National Cooperation Policy, 2025, which continues to shape India's cooperative sector reforms under the vision of 'Sahkar se Samriddhi' (prosperity through cooperation) was recently highlighted.
Launched on 24 July 2025 by the Ministry of Cooperation, the policy replaces the two-decade-old National Policy on Cooperatives of 2002 and sets the direction for the sector over 2025 to 2045, with Primary Agricultural Credit Societies (PACS) at the centre of the reform.
Source: PIB Today, 21 July 2026, 'National Cooperation Policy, 2025'
Vision and Targets
Coverage goal: At least one primary cooperative unit, such as a PACS, dairy, fisheries, or multipurpose cooperative, in every panchayat, and one cooperative in every village.
New PACS: Creation of 2 lakh new multipurpose PACS (M-PACS) within five years by converging schemes such as the Dairy Infrastructure Development Fund and PM Matsya Sampada Yojana (PMMSY).
Economic ambition: Tripling the cooperative sector's share in GDP by 2034 and ensuring active participation of around 50 crore members.
Model villages: Setting up five model cooperative villages in every tehsil, piloted first in Gandhinagar under NABARD's leadership.
Six Pillars of the Policy
Legal and regulatory reform: Easing the doing-business environment for cooperatives, including model bye-laws for PACS to ensure uniformity and transparency.
Governance and finance: Promoting autonomous governance and accessible credit, with scheduled cooperative banks empowered to function on par with commercial banks.
Sectoral expansion: Diversifying cooperatives into more than 25 sectors, including tourism, taxi services (Sahkar Taxi), insurance, and green energy, with National Cooperative Exports Limited (NCEL) boosting exports.
Technology adoption: Driving computerisation and use of cloud accounting, AI, and blockchain in PACS for transparent, accountable management.
Inclusivity: Prioritising rural women, Dalits, tribals, and youth for equitable, member-centric growth.
Training and education: Building skilled manpower through the Tribhuvan Sahkari University, India's first national cooperative university.
Key Facts for Prelims
Ministry of Cooperation: A separate Ministry of Cooperation was created in July 2021 to provide a distinct administrative and legal framework for the sector, headed by the Union Home Minister.
97th Constitutional Amendment (2011): Added Article 43B (cooperative societies under Directive Principles) and Part IXB dealing with the constitution and functioning of cooperative societies.
Scale of the sector: India has over 8 lakh cooperative societies with about 30 crore members, making it one of the largest cooperative movements in the world.