National Cooperation Policy, 2025

1. At a Glance

• Second-ever national policy on cooperatives in India, succeeding the National Policy on Cooperatives, 2002; unveiled by Union Cooperation Minister Amit Shah on 24 July 2025 in New Delhi [S1][S2].
• Articulates the vision "Sahkar Se Samriddhi" (Prosperity through Cooperation) as a vehicle for Viksit Bharat @ 2047; structured around 6 pillars, 16 objectives, 83 recommendations [S1][S3].
• Examinable across GS-II (governance, policy) and GS-III (economy, cooperatives, agriculture); aligns with the UN International Year of Cooperatives 2025 [S4].

2. Why in the News

• Launched 24 July 2025 by Amit Shah in New Delhi; the first national cooperation policy since 2002 and the first since creation of the Ministry of Cooperation in 2021 [S1][S2].
• PIB clarification (10 Feb 2026) elaborated the 16 objectives of the Policy in Parliament reply [S5].
• Coincides with UN-declared International Year of Cooperatives 2025, inaugural function held in Mumbai in Feb 2025 [S4].

3. Background & Evolution

• 2002 — first National Policy on Cooperatives issued [S1].
• 6 July 2021 — Ministry of Cooperation carved out (earlier under Ministry of Agriculture) [S1].
• 2022 — 40-member National Level Committee under Suresh Prabhu (former Union Minister) constituted to draft new policy [S1][S2].
• Drafting process: 17 meetings, regional workshops, ~750 suggestions, consultations with RBI and NABARD [S2].
• 24 July 2025 — Policy unveiled [S1].

4. Core Static Facts

• Nodal Ministry: Ministry of Cooperation (Union Home Minister also holds Cooperation portfolio) [S1].
• Constitutional/legal hook: Cooperative societies fall under Entry 32, State List; Multi-State Cooperative Societies Act, 2002; 97th Constitutional Amendment, 2011 (inserted Part IXB and Article 43B – DPSP) [contextual].
• Vision: Sahkar Se Samriddhi → Viksit Bharat 2047 [S2].
• Structure: 6 pillars, 16 objectives, 83 recommendations [S3].
• Drafting Chair: Shri Suresh Prabhu; 40-member committee [S2].
• Time horizon target: Triple cooperative sector's contribution to GDP by 2034 [S3].
• Coverage target: 2 lakh new M-PACS / Dairy / Fishery cooperatives in 5 years, covering every panchayat/village [S3].
• Membership target: bring 50 crore citizens into active cooperative participation; raise number of cooperative societies by 30% [S3].
• 16 objectives include legal-regulatory reform, accessible finance, multi-dimensional expansion incl. international markets, technology adoption, professionalisation, entry into new sectors [S5].

5. Multi-Dimensional Analysis

Economic - Tripling cooperative GDP share by 2034 positions cooperatives as a third pillar alongside public and private sectors [S3]. - M-PACS multipurpose model diversifies PACS beyond credit into dairy, fishery, services — addresses rural under-employment [S3].

Social - Explicit focus on villages, agriculture, rural women, Dalits, tribals; targets activation of 50 crore inactive/non-member citizens — inclusion lever [S2][S3].

Legal / Constitutional / Federal - Policy is Union-issued but cooperatives are State subject (Entry 32); implementation requires state buy-in — federal friction risk [contextual]. - Builds on Article 43B (DPSP) and Part IXB (97th Amendment) framework [contextual].

Administrative / Governance - Pillars stress professional management, transparency, ease of doing business, level playing field with corporate entities [S5]. - Convergence of existing GoI schemes to fund 2-lakh-PACS plan — minimises fresh fiscal outgo [S3].

Technological - Mandates technology adoption for efficient/transparent management — links to ongoing PACS computerisation (~63,000 PACS) [S5].

6. Recent Developments (last 12-18 months)

• Feb 2025 — Inaugural function of UN International Year of Cooperatives 2025 held in Mumbai by Amit Shah [S4].
• 24 July 2025 — National Cooperation Policy 2025 unveiled, New Delhi [S1].
• Aug 2025 — Full policy document released on PIB [S3].
• 10 Feb 2026 — PIB release elaborating 16 objectives in parliamentary reply [S5].

7. Prelims Hooks

• Policy launched on 24 July 2025 in New Delhi [S1].
• Replaces / succeeds the National Policy on Cooperatives, 2002 [S1].
• Drafting committee chaired by Suresh Prabhu, 40 members [S2].
• Committee held 17 meetings, received ~750 suggestions [S2].
• Structure: 6 pillars, 16 objectives, 83 recommendations [S3].
• Target: triple cooperative sector's GDP contribution by 2034 [S3].
• Target: 2 lakh new M-PACS / Dairy / Fishery cooperatives in 5 years [S3].
• Aim to bring 50 crore citizens into active cooperative membership [S3].
• Increase number of cooperative societies by 30% [S3].
• Nodal Ministry: Ministry of Cooperation (created 6 July 2021) [S1].
• Vision: Sahkar Se Samriddhi → Viksit Bharat 2047 [S2].
• UN declared 2025 as the International Year of Cooperatives; India's inaugural function in Mumbai [S4].
• Consultations included RBI and NABARD [S2].

8. Mains Relevance

• GS-II: Government policies and interventions; issues relating to development; cooperative federalism.
• GS-III: Indian economy; mobilisation of resources; inclusive growth; agriculture and food processing; PACS reforms.
• Plausible question stems: 1. "Cooperatives can be the 'third pillar' of the Indian economy alongside public and private sectors." Critically examine in light of the National Cooperation Policy, 2025. 2. Discuss how the National Cooperation Policy, 2025 seeks to operationalise Article 43B and the spirit of the 97th Constitutional Amendment within the constraints of federalism. 3. Evaluate the role of Multi-Purpose PACS in achieving rural prosperity, in the context of the 2-lakh-PACS target under the National Cooperation Policy, 2025.

9. Related Topics to Study Next

• 97th Constitutional Amendment Act, 2011 & Article 43B — constitutional underpinning of cooperatives.
• Multi-State Cooperative Societies (Amendment) Act, 2023 — legislative companion.
• PACS Computerisation Scheme — tech pillar of the policy.
• Ministry of Cooperation (est. 2021) — institutional context.
• Sahakar Se Samriddhi initiatives — White Revolution 2.0, dairy/fishery PACS.
• International Year of Cooperatives 2025 (UN) — global linkage.
• NABARD & RBI role in cooperative credit — regulatory architecture.
• Vaidyanathan Committee on Cooperative Credit — historical reform backdrop.

10. Common Errors / Trap Areas

• Wrong predecessor year: previous policy was 2002, not 2012 or 2017.
• Wrong ministry: it is the Ministry of Cooperation, not Ministry of Agriculture (separated in 2021).
• Confusing numbers: 6 pillars, 16 objectives, 83 recommendations — easy to swap.
• "Tripling GDP share" by 2034, not 2047; Viksit Bharat horizon is 2047 — distinguish the two timelines.
• 97th Amendment Part IXB: partially struck down by SC in Union of India v. Rajendra N. Shah (2021) insofar as it applied to state cooperatives — Article 43B (DPSP) survives.

11. Sources

• [S1] Union Home Minister and Minister of Cooperation, Shri Amit Shah, unveils National Cooperative Policy - 2025 in New Delhi — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2148058 — (tier: 1)
• [S2] Amit Shah to unveil 'National Cooperative Policy 2025' on 24 July — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146772 — (tier: 1)
• [S3] National Cooperation Policy 2025 (Factsheet) — https://www.pib.gov.in/FactsheetDetails.aspx?Id=149229&reg=3&lang=2 — (tier: 1)
• [S4] Amit Shah addresses inaugural function of International Year of Cooperatives-2025 in Mumbai — https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2095982 — (tier: 1)
• [S5] National Cooperation Policy, 2025 (16 objectives, PIB 10 Feb 2026) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2225901 — (tier: 1)