Blitz Bureau
IN a significant move aimed at fostering inclusive growth and empowering the rural populace, the Government last week unveiled its new National Cooperative Policy. Replacing the nearly two-decade-old framework from 2002, this ambitious policy seeks to transform cooperatives into professional, sustainable economic entities, significantly boosting their contribution to the nation’s GDP and bringing millions more into the fold of equitable growth.
Union Home and Cooperation Minister Amit Shah, while releasing the policy, emphasised its overarching goal: To build a “cooperative business ecosystem” that reaches every village in the country. The target is to establish at least one cooperative organisation in every village, aiming to bring 50 crore (500 million) people under the ambit of cooperatives and make them active stakeholders in the economy.
The new policy, formulated by a 48-member national-level committee headed by former Union Minister Suresh Prabhu, outlines 16 objectives grouped under six broad strategic mission pillars. A key objective for the 2025-2045 period is the development of five model cooperative villages in every ‘tehsil’ (sub-district), each centered around a multipurpose primary agricultural cooperative society (PACS) as a growth engine.
This renewed focus on the cooperative sector comes at a crucial time for the Indian economy. While India continues to be one of the fastest-growing major economies globally, with robust domestic demand and strategic initiatives like the Production Linked Incentive (PLI) schemes bolstering manufacturing, challenges remain. The agricultural sector, in particular, despite being the backbone of the rural economy, grapples with issues like land fragmentation, inadequate infrastructure, and farmer distress due to fluctuating market prices and climate vulnerability.
The new Cooperative Policy is designed to address many of these systemic issues by strengthening the cooperative movement at the grassroots. By providing a structured framework for cooperatives to professionalise and expand, the government hopes to enhance access to credit, improve market linkages for agricultural produce, facilitate adoption of modern farming techniques, and create local employment opportunities. This bottom-up approach is expected to empower small and marginal farmers, often the most vulnerable segment, by enabling them to collectively leverage resources and achieve better bargaining power.
Economists and policy analysts are closely watching the implementation of this policy. While the vision is clear, the success will depend on effective execution, adequate financial support, and a robust regulatory framework that ensures transparency and accountability within the cooperative structure. If successful, the new National Cooperative Policy could be a gamechanger for India’s rural economy, driving not just economic growth but also fostering a more inclusive and equitable distribution of prosperity across the country. Sanjay Bhende of Nagpur Nagarik Sahakari Bank said, “Cooperative societies have become vital sources of financial empowerment for ordinary citizens. The creation of a separate ministry has led to systematic reforms. Earlier, the cooperative department was under the agriculture ministry. Now, with focused governance, we’ve seen increased accountability and innovation.”
