What is the National Cooperative Policy 2025? New Policy Aimed at Strengthening Cooperatives in India

The National Cooperative Policy 2025 is a new plan by the Indian government to improve and modernise the cooperative sector. It replaces the 2002 policy and will guide the industry for the next 20 years, from 2025 to 2045. 

This policy is made for farmers, small business owners, rural workers, and anyone involved in cooperative societies. Its goal is to make cooperatives more inclusive, professional, and future-ready.

The policy aims to create jobs, boost rural development, and help cooperatives grow in areas such as farming, dairy, fisheries, and banking. It also supports the use of digital tools and improved management practices. 

A special committee of 48 members helped draft the policy after consulting with experts and stakeholders across India. The government aims to establish at least one cooperative society in every village and plans to establish 2 lakh Primary Agricultural Credit Societies (PACS) by 2026.

What is the New National Cooperative Policy 2025? Who will benefit from it?

Imagine a group of people coming together to help each other, not just to make money for themselves. They own and run a business together, sharing the benefits. This is what the cooperative sector means.

In India, cooperatives are everywhere. Consider milk cooperatives (such as Amul), farmer groups, banks catering to the ordinary people, housing societies, and even organisations supporting women.

They help ordinary people, especially in rural areas, access money, sell their products more effectively, and improve their lives.

What is the New National Cooperative Policy 2025?

• The National Cooperative Policy 2025 is a new policy framework designed to revive and modernise India's cooperative sector.
• It replaces the earlier policy from 2002, adapting to changes brought about by globalisation and technological advancements over the past two decades.
• The policy seeks to make cooperative institutions inclusive, professionally managed, future-ready, and capable of generating large-scale employment and livelihood opportunities, especially in rural India.
• It envisions the period from 2025 to 2045 as a milestone for the cooperative movement, aligning with the goal of "Viksit Bharat 2047" (Developed India 2047).

Key Details and Launch:

• The New National Cooperative Policy 2025 will be unveiled by Union Home Minister and Minister of Cooperation Shri Amit Shah on July 24, 2025, at the Atal Akshay Urja Bhawan, New Delhi.
• A 48-member national-level committee, chaired by former Union Minister Shri Suresh Prabhakar Prabhu, drafted the policy following 17 meetings and four regional workshops to incorporate suggestions from stakeholders.
• The policy aims to establish 2 lakh new multipurpose Primary Agricultural Credit Societies (PACS), Dairy, and Fishery Cooperative Societies within five years, covering all panchayats and villages.
• States are encouraged to develop their cooperative policies by January 31, 2026, tailored to local needs.

Who will benefit?

• Farmers and Rural Communities: By strengthening PACS and promoting dairy and fisheries cooperatives, the policy will enhance rural incomes, provide better market access, and secure fair prices for produce.
• Small Entrepreneurs: Improved access to credit and resources through cooperatives will facilitate their growth.
• Women and Youth: The policy aims to create large-scale employment and livelihood opportunities, particularly in rural India.
• The Cooperative Sector as a whole: The policy will bring professional management, transparency, and modern practices, ensuring the long-term sustainability and growth of cooperative institutions.
• Indian Economy: By boosting the cooperative sector, the policy will significantly contribute to India's economic growth and its vision of becoming a developed nation.

What are the Crucial Changes in the New Cooperative Policy from the Old Cooperative Policy? A Detailed Comparison

India's cooperative sector is undergoing a significant transformation with the introduction of the new National Cooperative Policy 2025, which replaces the previous policy from 2002. 

The new policy aims to modernise and revive the cooperative movement, aligning it with the vision of "Sahakar se Samriddhi" (Prosperity through Cooperation) and contributing to "Viksit Bharat 2047" (Developed India 2047).

Here's a detailed comparison between the Old (2002) and New (2025) National Cooperative Policies:

The old policy from 2002 was a good starting point, as it established basic guidelines. However, the new policy, set to be implemented in 2025, represents a significant overhaul. 

It focuses on modernising cooperatives, making them more professional, and empowering them to be key drivers of growth in India, particularly in rural areas. The goal is to bring about substantial changes that will directly impact local villages.