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EconomicsSource: The Hindu

India Launches National Cooperation Policy 2025 to Strengthen Cooperative Sector

Saturday, 26 July 2025
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Key Points

India has launched the National Cooperation Policy 2025 to strengthen the cooperative sector, marking a significant step during the International Year of Cooperatives (IYC) 2025. This policy is crucial for UPSC aspirants as it aligns with GS Paper 2 and 3, focusing on governance, social justice, and economic development. Last Updated: 2025-07-26

Key Facts About National Cooperation Policy 2025

  • Vision: Supports the Ministry of Cooperation's mandate 'Sahakar se Samriddhi'.
  • Convergence: Utilizes existing government schemes to establish 200,000 M-PACS.
  • Inclusive Growth: Empowers rural populations, especially marginalized groups.
  • Diversification: Encourages cooperatives to branch into over 25 sectors.
  • Education: Promotes cooperative education through India's first national cooperative university.
  • Technology: Aims to modernize cooperatives for competitiveness.
  • Global Engagement: Establishes NCEL for global market access.
  • Cooperatives: Autonomous associations meeting common needs.
  • Legal Backing: 97th Amendment grants constitutional status to cooperatives.
  • Scale: India has nearly 842,000 cooperatives with 290 million members.
  • Model Bye-Laws: Enhance uniformity and transparency.
  • FPOs: Approximately 1,900 formed in the cooperative sector.
  • FFPOs: Promoting resources and training for small fishers.
  • NCOL: Promotes organic farming through PACS.
  • White Revolution 2.0: Aims to boost milk procurement.
  • Challenges: Weak infrastructure, low participation, financial barriers, lack of skills, and tech integration.
  • Opportunities: Economic empowerment, global presence, job creation, and improved governance.

India's Cooperative Sector: A Catalyst for Economic Empowerment

The National Cooperation Policy 2025 is pivotal in advancing India's economic and social objectives by empowering the cooperative sector. As a key player in rural development, cooperatives contribute significantly to India's GDP and employment. With nearly 842,000 cooperatives, India ranks among the top nations in cooperative density, fostering inclusive growth and sustainability.

Related Government Schemes/Policies

  • Pradhan Mantri Fasal Bima Yojana: Provides insurance coverage and financial support to farmers.
  • Rural Infrastructure Development Fund: Aims to improve rural infrastructure through cooperative efforts.
  • Digital India: Enhances digital infrastructure for cooperative modernization.

UPSC Relevance

  • GS Paper 2: Governance, social justice, and policies related to cooperative development.
  • GS Paper 3: Economic development, inclusive growth, and resource mobilization.
  • Prelims Angle: Questions on the 97th Amendment, number of cooperatives, and key features of the policy.
  • Mains Angle: Analytical themes on cooperative governance, economic empowerment, and rural development.
  • Essay Paper: Topics on inclusive growth and the role of cooperatives in India.

FAQ Section

  • What is the National Cooperation Policy 2025? The National Cooperation Policy 2025 is a strategic initiative by India to strengthen the cooperative sector, aiming to enhance grassroots cooperatives and promote inclusive growth.
  • Why is the National Cooperation Policy 2025 important? It is crucial for economic empowerment, addressing challenges in the cooperative sector, and leveraging opportunities for sustainability and global engagement.
  • What are the key features of the National Cooperation Policy 2025? Key features include establishing 200,000 M-PACS, promoting cooperative education, modernizing through technology, and fostering global market access.

Detailed Coverage

  • Vision: Supports the Ministry of Cooperation's mandate 'Sahakar se Samriddhi'.
  • Convergence: Utilizes existing government schemes to establish 200,000 M-PACS.
  • Inclusive Growth: Empowers rural populations, especially marginalized groups.
  • Diversification: Encourages cooperatives to branch into over 25 sectors.
  • Education: Promotes cooperative education through India's first national cooperative university.
  • Technology: Aims to modernize cooperatives for competitiveness.
  • Global Engagement: Establishes NCEL for global market access.
  • Cooperatives: Autonomous associations meeting common needs.
  • Legal Backing: 97th Amendment grants constitutional status to cooperatives.
  • Scale: India has nearly 842,000 cooperatives with 290 million members.
  • Model Bye-Laws: Enhance uniformity and transparency.
  • FPOs: Approximately 1,900 formed in the cooperative sector.
  • FFPOs: Promoting resources and training for small fishers.
  • NCOL: Promotes organic farming through PACS.
  • White Revolution 2.0: Aims to boost milk procurement.
  • Challenges: Weak infrastructure, low participation, financial barriers, lack of skills, and tech integration.
  • Opportunities: Economic empowerment, global presence, job creation, and improved governance.
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Practice Questions

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The constitutional amendment that granted cooperatives constitutional status in India, ensuring the right to form cooperatives under Article 19(1)(c) and promoting them within the Directive Principles of State Policy under Article 43B, is known as which of the following?