National Cooperation Policy 2025 after 23 years

On July 24, 2025, Union Home and Cooperation Minister Amit Shah unveiled the National Cooperation Policy (NCP) 2025, bringing an end to a 23-year-old cooperative framework. This significant development coincides with a globally significant moment — the United Nations declaring 2025 as the International Year of Cooperatives, with the theme: “Cooperatives Build a Better World.” India, as the host of the global launch of this observance back in November 2024, has once again cemented its leadership role in the international cooperative movement.

The new policy, which will remain in effect until 2045, sets the stage for India’s journey toward “Viksit Bharat 2047”, marking 100 years of independence. Built on the visionary motto “Sahkar Se Samriddhi” (Prosperity through Cooperation), the policy promises a revitalized cooperative ecosystem backed by modern tools, digitization, professionalisation, and inclusivity.

Why a New Cooperation Policy, and Why Now?

The previous policy, enacted in 2002 under the A.B. Vajpayee-led NDA government, provided a basic framework for cooperative governance, focusing mainly on autonomy, financial guidelines, and limited state control. However, two decades of globalisation, economic shifts, and technological evolution had rendered it outdated.

The cooperative sector needed a renewed, future-ready approach — one that recognizes:

• Digital transformation,

• The entry of cooperatives into new sectors like exports, logistics, and education,

• The need for a youth-driven, innovation-oriented structure,

• And urgent reforms in governance and transparency.

This realisation led to the formation of a 48-member expert committee, headed by Suresh Prabhu, which drafted the new National Cooperative Policy.

Download official Pdf of New cooperation policy 2025

Comparison Between the Old Policy (2002) vs. New Policy (2025)

Feature	Old Policy (2002)	New Policy (2025)
Main Goal	Provided a basic framework for cooperatives’ money matters.	Revive, modernise, and professionalise cooperatives.
Why Change?	Focused on autonomy, lacked adaptation to modern issues.	Globalisation and technology necessitate new thinking.
Key Objectives	Ensured autonomy, minimal government interference.	Focused on inclusion, professionalism, and job creation.
Big Initiatives	General promotion of democratic principles.	2 lakh new PACS; total digitisation of cooperatives.
Challenges Tackled	Aimed at self-reliance.	Tackles governance gaps, outdated laws, lack of tech, and political misuse.
Approach	Broad, non-binding guidelines.	Action-driven, with measurable goals and timelines.
Who Framed It?	Department of Agriculture & Cooperation.	48-member committee led by Suresh Prabhu.
Govt. Support	No separate ministry for cooperatives.	Strong backing by Ministry of Cooperation formed in 2021.

The Six Pillars of the New Cooperative Policy

To meet its ambitious goals, the National Cooperative Policy 2025, designed to operate until 2045, lays out six core pillars:

1. Strengthening the Foundation: Enhancing legal and financial frameworks, ensuring transparency, and modernizing old cooperative laws.

2. Promoting Vibrancy: Making cooperatives more dynamic through capacity building, leadership training, and innovation adoption.

3. Preparing Cooperatives for the Future: Integrating technology, sustainability, and forward-looking business models into cooperative operations.

4. Enhancing Inclusivity and Expanding Reach: Focusing on women, youth, tribal, and marginalized communities, ensuring last-mile coverage.

5. Expanding into New Sectors: Encouraging cooperatives to explore exports, tourism, logistics, healthcare, etc.

6. Preparing the Next Generation: Introducing cooperative education in schools, skill development programs, and youth participation initiatives.

Key Government Initiatives (2021-2025) : Laying the Foundation

The formation of a dedicated Ministry of Cooperation (Sahkarita Mantralaya) in July 2021, just before the biggest cabinet reshuffle of PM Modi’s second term, marked a watershed moment. Until then, the cooperative sector operated under the Agriculture Ministry, since its alignment with rural development in 1979.

Major initiatives since 2021:

• The Multi-State Cooperative Societies Act, 2023 ushered in three new apex cooperative bodies, including the National Cooperative Exports Limited (NCEL).

• NCEL has already opened global markets to Indian cooperatives — securing ₹5,000 crore worth of rice and wheat orders within months of formation.

• A target of 2 lakh new Multi-Purpose Primary Agricultural Credit Societies (PACS) is set for the next five years — with full computerization for transparency and efficiency.

• The Model Cooperative Village initiative was launched in Gandhinagar with support from NABARD, to serve as role models for rural cooperative development.

• The foundation stone of India’s first National Cooperative University, Tribhuvan Sahkari University, was laid in Anand, Gujarat. Minister Shah also emphasized introducing cooperative education into secondary school curricula, ensuring future generations carry the cooperative spirit forward.

From Colonial Era to Amul: History of Indian Cooperatives

The roots of the cooperative movement in India run deep, beginning well before Independence:

• 1904: The Cooperative Credit Societies (CCS) Act was passed, following the Edward Law Committee’s recommendations to tackle rural debt.

• 1912: A more comprehensive Cooperative Societies Act led to a surge in cooperative formation — 5,300 societies and 3 lakh members by 1911.

• 1914: The Maclagen Committee was established amid World War I and a banking crisis to study cooperative credit health.

• 1919: Under the Government of India Act, cooperatives became a provincial subject, resulting in state-specific laws like the Bombay Cooperative Societies Act (1925).

• 1946: The Khera District Milk Producers Union (now Amul) was registered, months before Independence.

• 2023-24: India became the world's largest producer of milk (239 million tonnes), far ahead of the US (103 million tonnes), thanks to the cooperative dairy model pioneered by Verghese Kurien.

After Independence, cooperatives played an active role in the Five-Year Plans, especially in rural credit, milk production, housing, and procurement.

Constitutional Recognition: The 97th Constitutional Amendment

97th Constitutional Amendment, which granted constitutional status to cooperatives. It brought in key additions:

• Part IXB (The Co-Operative Societies) was added through the 97th Constitutional Amendment, giving constitutional status to cooperatives.

• Article 19(1)(c): Included the right to form cooperative societies as a fundamental right under the Right to Freedom.

• Article 43B (Promotion of Cooperative Societies) was also inserted as one of the Directive Principles of State Policy under Part 4 of the Constitution of India.

Despite being a state subject, many cooperatives today operate across state borders — for example, sugar mills on the Karnataka-Maharashtra border — necessitating national laws like the Multi-State Cooperative Societies (Amendment) Act, 2023.

What Are Cooperatives? A People-Powered Model

A cooperative is a member-owned organization formed at the grassroots level. It enables individuals to:

• Pool their resources,

• Share profits,

• Reduce costs,

• And collectively improve their market standing.

Common cooperative models in India include:

• Dairies (e.g., Amul),

• Spinning mills,

• Sugar factories,

• Fishing cooperatives, etc.

The concept ensures that no one is left behind, and profits are not driven by capital but by shared participation and local ownership.

The 5Ps Framework of Cooperative Development

The Ministry of Cooperation under Amit Shah has launched over 60 initiatives, all aligned with the “5Ps” philosophy:

1. People – Citizens are central to every cooperative’s vision.

2. PACS (Primary Agricultural Credit Societies) – Strengthening the most foundational level of rural cooperative credit.

3. Platform – A strong digital infrastructure that links all cooperative layers.

4. Policy – Laws and reforms tailored to modern needs.

5. Prosperity – The final goal: improved rural incomes and livelihoods.

As India moves toward 100 years of independence in 2047, the National Cooperative Policy 2025–2045 aims to position cooperatives as engines of inclusive growth. With a solid constitutional foundation, global alignment through the International Year of Cooperatives, and unprecedented government support, the future of India's cooperative movement looks brighter than ever.

This is more than a policy shift — it is the beginning of a grassroots revolution, where rural India rises not alone, but together — through cooperation, inclusion, and shared prosperity.

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