National Cooperative Policy for 2025-2045 soon, says Amit Shah

By | July 1, 2025
Amit Shah announces National Cooperative Policy 2025–2045 to strengthen rural cooperatives

Union Home and Cooperation Minister Amit Shah recently announced that India will soon launch the National Cooperative Policy 2025–2045. This long-term plan aims to strengthen grassroots governance, improve rural economies, and modernize India’s vast cooperative network. It lays out a clear 20-year roadmap to make cooperatives more efficient, transparent, and inclusive.

A Long-Term Plan for Growth

The new policy will guide India’s cooperative sector from 2025 to 2045. It focuses on agriculture, rural credit, dairy, fisheries, housing, and other community-based sectors. The government wants to reimagine cooperatives as tools for both economic growth and social equity.

Speaking at a national meeting of the Indian Cooperative Union, Amit Shah emphasized the importance of the cooperative model. He said that cooperatives offer a fair and democratic path to development, especially in villages. This policy will be a key step in transforming how rural communities access credit, markets, and support.

One Cooperative in Every Village

One of the most ambitious targets is to ensure every village in India has at least one cooperative society within five years. To make this goal possible, the government has committed to creating 2 lakh (200,000) Primary Agricultural Credit Societies (PACS) by February 2026.

These PACS will serve multiple purposes. They will provide loans, distribute farming inputs like seeds and fertilizers, and even support cold storage and crop marketing. This approach is meant to reduce farmers’ reliance on informal lenders and middlemen.

Role of State Governments

The national policy will also require active participation from all states. By January 31, 2026, every state must draft its own cooperative policy. These state-level policies must align with the national framework but should also meet local needs.

To make this possible, states must update outdated cooperative laws. Many of these laws were written during British rule and no longer fit today’s needs. The new laws will promote transparency, end nepotism, and bring in trained professionals to manage cooperatives.

Focus on Digital and Transparent Systems

A major part of the policy involves digitizing the cooperative sector. The government will introduce digital platforms that track financial records, member participation, and service delivery. This will reduce corruption and delays while improving efficiency.

Training is also a major focus. The Tribhuvan Sahkari University, India’s first university dedicated to cooperatives, will train thousands of youth and professionals. Its affiliated colleges will offer specialized courses in cooperative governance, finance, and technology.

Cooperatives Across Multiple Sectors

The policy is not limited to agriculture. It will also strengthen cooperatives in:

  • Fisheries: Helping small-scale fishers access better markets and sustainable practices.
  • Dairy: Improving milk cooperatives through digital tools and fair pricing systems.
  • Housing: Expanding cooperative housing societies in urban and rural areas.
  • Banking: Bringing Urban Cooperative Banks (UCBs) under tighter RBI regulation for safety and transparency.

This wide coverage will make cooperatives a part of India’s larger development plan. The goal is to help people earn more, reduce their costs, and build wealth collectively.

Challenges and the Way Forward

Despite the strong vision, implementation will be a challenge. Many cooperatives in India suffer from poor management, lack of trust, and political interference. The success of this policy will depend on how well these problems are solved at the ground level.

Experts suggest that for the policy to work, cooperatives must have better access to loans, insurance, and markets. They also need leaders who are trained, accountable, and community-focused.

Another key factor is the inclusion of women and young people. Cooperatives must offer leadership roles and economic opportunities to these groups if they want to be sustainable in the long run.

Why This Policy Matters

The National Cooperative Policy 2025–2045 is more than just a set of rules. It is a vision for how India’s villages can grow together, share wealth, and solve local problems through local efforts. With government support, updated laws, and modern tools, cooperatives could become a driving force in India’s journey toward inclusive development.

As Amit Shah pointed out, the cooperative model blends the best of democracy and development. If executed well, this policy could become a blueprint for other countries aiming to build people-first economies.