National Cooperative Policy 2025

Why in News?

• On 24th July 2025, Union Home and Cooperation Minister Amit Shah unveiled the National Cooperative Policy 2025.

Key Points:

• A 48-member committee headed by Suresh Prabhu has prepared a draft of the National Cooperative Policy 2025.
• The new policy has been formulated to modernise the sector and align it with the vision of "Prosperity through Cooperation".
• This policy will determine the direction and strategy of the cooperative sector for the next 20 years (2025–2045).
• The National Cooperative Policy- 2025 will replace the policy of the year 2002, which provided a basic framework for better functioning of the economic activities of cooperative institutions.

Key Objectives

• To establish at least one cooperative institution in every village.
• To form 2 lakh PACS (Primary Agricultural Credit Societies) by 2026.
• Directive to all states to formulate their own State Cooperative Policy (Last date – 31st January 2026).
• To make the cooperative sector modern, transparent, inclusive and professional.

Training and Institutional Framework

• Tribhuvan Cooperative University (TSU), Gujarat:
• India’s first national cooperative university.
• Objective – To eliminate nepotism in jobs in the cooperative sector, provide vocational training.
• At least one cooperative training institute mandatory in every state.

What is the cooperative sector ?

• In the cooperative sector, people voluntarily come together to form an organization so that they can collectively meet their economic, social and cultural needs.
• These organizations are based on the “principles of cooperation”, such as – democracy, equality, self-reliance and collective effort.

 Key Features:

• Member-controlled organization: Every member has the right to vote, whether his capital is high or low.
• Equality of profits: Profits are distributed equally among members or in proportion to their transactions.
• Local development: Cooperatives promote employment, finance and development at the local level.

History of Cooperative Sector in India:

• 1904: The first law on cooperative credit societies came into force (The Co-operative Credit Societies Act).
• 1912: Non-credit cooperative societies were recognized.
• 1951-2025: In the five-year plans, cooperatives got an important place in rural development, agricultural credit, dairy, marketing etc.
• 2021: The Government of India established the Ministry of Cooperatives.

Constitutional Provisions Related to Cooperative Sector

97th Constitutional Amendment Act, 2011

• Amendment in Article 19(1)(c)
• This article included “cooperative societies” as a fundamental right.
• Now citizens have the right to form cooperative societies along with the freedom of association and union.
• Inclusion of Part IX-B (Articles 243ZH to 243ZT)
• This part provides the administrative and electoral structure of cooperative societies.
• Inclusion of Article 43B (in Directive Principles of State Policy)
• It says that “The State should encourage autonomy, democratic functioning and professionalism of voluntary organisations working on a cooperative basis.”