India’s New National Cooperative Policy (2025–2045)

Introduction

In mid‑2025, the Union Government announced that it will soon unveil a National Cooperative Policy (2025–2045), aiming to revitalise and modernise the cooperative sector across India.

The policy intends to guide cooperative development up to India’s centenary of independence, aligning state-level frameworks and institutional capacity.

Key Features and Objectives

State‑level customisation: Each state will formulate its own cooperative policy in line with local agrarian, industrial and social contexts.

Institutional building: The policy proposes that every state have at least one cooperative training institution affiliated with a “Tribhuvan Sahkari University.”

Expansion of PACS: The target is to establish 2 lakh Primary Agricultural Credit Societies (PACS) in FY 2025–26.

Longevity and vision: The policy is intended to operate over a 20‑year horizon (2025–2045), offering continuity and long‑term planning.

Challenges & Risks

Heterogeneity across states: Diverse agrarian structures, cooperative traditions, and state capacity may complicate uniform policy implementation.

Weak governance and corruption: Past experiences show cooperatives may suffer from political interference, mismanagement, and lack of professional expertise.

Financial sustainability: Many cooperatives struggle with capital constraints, loan defaults, and limited access to markets.

Coordination gap: Ensuring alignment across central, state and local levels may be complex.

Opportunities & Significance

Inclusive rural development: A vibrant cooperative movement can empower small farmers, rural artisans, women, and marginalized communities.

Credit access & financial inclusion: Strengthened PACS can decentralise credit, reduce dependence on informal lenders.

Value chain integration: Cooperatives can play larger roles in processing, marketing, supply chain linkages, and collective bargaining.

Democratic ownership: As member‑driven institutions, cooperatives can promote stakeholder participation and accountability.

Way Forward / Recommendations

Capacity building: Emphasise training, exposure, and governance reforms for cooperative leadership.

Performance metrics & accountability: Use transparent audits, digital monitoring, and performance incentives.

Linkages with markets & technology: Cooperatives should be integrated into e‑markets, supply chains, and adopt digital tools.

Pilot models & learning loops: Start with pilot projects in varied states; use feedback and iteration before scaling.

Conclusion

If well designed and implemented, the National Cooperative Policy (2025–2045) could catalyse a revival of India’s cooperative sector, making it a key instrument for inclusive growth, rural empowerment, and sustainable development. However, success will hinge on political will, institutional reforms, and prudent execution.