New Delhi (ABC Live): India’s New National Cooperative Policy 2025 marks a major effort to strengthen the country’s cooperative sector. The Government of India launched the policy on 24 July 2025, and the Ministry of Cooperation now plans to guide the sector over the next decade.

Importantly, the policy introduces a 10-year roadmap to modernise cooperative institutions, improve governance, and expand economic opportunities for members. Moreover, it connects cooperative reforms with broader rural development goals. Consequently, policymakers expect cooperatives to play a larger role in India’s economic growth.

At the same time, the policy supports the national vision of “Sahkar-se-Samriddhi” (Prosperity through Cooperation). In this context, the government views cooperatives as a powerful instrument for inclusive development.

Official Sources:

PIB Press Release
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2237650&reg=3&lang=1

Policy Document
https://www.cooperation.gov.in/sites/default/files/2025-07/NCP%28Eng%29_24Jul2025_Final.pdf

India’s Cooperative Sector: Key Facts

India hosts one of the largest cooperative networks in the world. Therefore, reforms in this sector can influence millions of citizens.

According to the policy document:

• India has more than 8 lakh cooperative societies
• Around 2 lakh credit cooperatives
• About 6 lakh non-credit cooperatives
• Nearly 30 crore members across the country

Consequently, cooperatives remain deeply integrated with India’s rural economy.

Policy Dashboard

Initially, the Ministry of Cooperation formed the drafting committee in September 2022. Subsequently, the committee organised consultations with stakeholders and experts.

Why India Needed a New Cooperative Policy

India issued its previous cooperative policy in 2002. However, the economic landscape has changed significantly since then.

First, digital technology has transformed financial systems. Second, rural infrastructure has expanded rapidly. Third, farmers and rural entrepreneurs now seek better market access.

Therefore, policymakers concluded that the cooperative sector required a modern policy framework.

Meanwhile, the creation of the Ministry of Cooperation in 2021 provided a dedicated institutional platform to strengthen the cooperative movement.

The Six Strategic Pillars

The policy framework rests on six pillars that guide cooperative development.

Strengthening the Foundation
First, the policy aims to improve governance systems and regulatory frameworks so that cooperatives operate more efficiently.

Promoting Vibrancy
Next, the policy promotes a vibrant cooperative ecosystem that generates sustainable income for members.

Making Cooperatives Future-Ready
Furthermore, the policy encourages digitalisation and professional management.

Promoting Inclusivity
Similarly, the policy expands participation among women, small farmers, and marginalized communities.

Entering New Sectors
In addition, cooperatives are encouraged to expand into new sectors such as processing, logistics, and digital marketplaces.

Engaging the Younger Generation
Finally, the policy focuses on youth participation through education and training programmes.

Major Initiatives Supporting the Policy

Several government initiatives support the implementation of the policy.

PACS Reform
First, new model bye-laws allow Primary Agricultural Credit Societies to diversify their activities.

Formation of Two Lakh New Cooperatives
Moreover, the government plans to establish two lakh new PACS, dairy, and fisheries cooperatives.

White Revolution 2.0
Meanwhile, the government has launched White Revolution 2.0 to expand dairy cooperatives.

Decentralized Grain Storage
In addition, the government plans to create decentralized grain storage systems through PACS.

Tax Reforms for Cooperatives
Furthermore, the government reduced Minimum Alternate Tax (MAT) from 18.5% to 15% for cooperative societies.

Consequently, these reforms improve the financial environment for cooperatives.

Implementation Framework

The Ministry of Cooperation will oversee the implementation of the policy.

First, the ministry will establish an Implementation Cell. Next, a National Steering Committee on Cooperation Policy will guide implementation.

Meanwhile, a Policy Implementation and Monitoring Committee will coordinate with state governments.

In addition, institutions such as NABARD, National Cooperative Development Corporation, National Dairy Development Board, and National Fisheries Development Board will support the policy rollout.

ABC Live Analysis

The National Cooperative Policy 2025 aims to reposition cooperatives as a major pillar of India’s rural economy.

On the one hand, the sector already includes millions of members. On the other hand, many cooperatives still face governance challenges.

Therefore, the policy’s success will depend on effective state-level implementation and improved institutional capacity.

If implemented effectively, cooperatives could strengthen rural supply chains, expand financial access, and support local entrepreneurship.

Conclusion

India’s New National Cooperative Policy 2025 provides a comprehensive roadmap for modernising the cooperative sector.

Moreover, the policy encourages digital transformation, stronger governance, and expansion into new sectors.

Consequently, cooperatives could become a powerful driver of inclusive economic growth.

However, the policy’s real impact will become clear only as implementation progresses over the next decade.

Sources

Press Information Bureau
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2237650&reg=3&lang=1

Ministry of Cooperation
https://www.cooperation.gov.in/sites/default/files/2025-07/NCP%28Eng%29_24Jul2025_Final.pdf