The Government of India revealed the National Cooperative Policy (NCP) in 2025 to strengthen and modernise the cooperative sector. The policy aims to build a robust cooperative ecosystem that is inclusive, future-ready, and contributes to the national economy. Union Home Minister Amit Shah announced the policy’s six pillars and ambitious targets to enhance cooperative participation across sectors.
and Policy Launch
The NCP was launched to revitalise cooperative societies in India. It focuses on sectors like tourism, taxi services, insurance, and green energy. The government plans to integrate cooperatives into these emerging areas to increase profitability and member benefits. A key objective is to ensure profits reach rural Primary Agricultural Credit Societies (PACS), encouraging grassroots development.
Six Pillars of the National Cooperative Policy
The policy rests on six pillars – strengthening foundations, promoting vibrancy, preparing cooperatives for future challenges, enhancing inclusivity, expanding reach, and engaging youth in cooperative development. These pillars aim to create self-reliant and sustainable cooperative institutions across India.
Sectoral Expansion and New Initiatives
New sectors like taxi services and insurance will see cooperative participation soon. This expansion will encourage successful cooperatives to form new entities in these sectors. Such diversification is expected to generate additional income streams for cooperative members and improve sectoral resilience.
Implementation and Progress
The government identified 83 intervention points for policy implementation. So far, 58 have seen progress, with 3 fully implemented. Continuous efforts are underway for the remaining points. The policy encourages states to adopt these measures to create a unified and efficient cooperative framework.
Targets for Growth and Inclusion
The policy aims to triple the cooperative sector’s GDP contribution by 2034. It seeks to increase cooperative society numbers by 30% from the current 8.3 lakh. Another goal is to activate 50 crore citizens who are currently non-members or inactive participants in cooperatives, thereby broadening the cooperative base.
Government Support and Cooperative Autonomy
The Modi government has pledged 24/7 support for cooperative institutions. However, cooperatives are urged to strengthen internally to sustain growth. The policy emphasises cooperative autonomy backed by government facilitation to create a thriving ecosystem.
Youth Engagement and Future Preparedness
Preparing the younger generation for cooperative leadership is a key pillar. The policy promotes youth participation to ensure sustainability and innovation. Training and awareness programmes are planned to equip young members with necessary skills.
Economic and Social Impact
The NCP envisions cooperatives as vital instruments for inclusive development. By linking profits to rural members and expanding sectoral reach, the policy aims to reduce rural distress and promote economic self-reliance. Cooperatives are positioned as vehicles for social equity and economic empowerment.
Questions for UPSC:
- Critically discuss the role of cooperatives in India’s rural development and their impact on financial inclusion.
- Examine the challenges faced by cooperative societies in adapting to modern sectors such as green energy and insurance.
- Analyse the importance of youth participation in cooperative movements and how it can influence India’s cooperative future.
- Estimate the potential economic impact of tripling the cooperative sector’s GDP contribution by 2034 and identify key factors for achieving this goal.
