National Cooperation Policy 2025: A Needonomics Pathway to Inclusive Growth and Rural Prosperity

Prof. Madan Mohan Goel, Proponent Needonomics & Former Vice-Chancellor (Thrice)

Needonomics School of Thought (NST) reviews the National Cooperation Policy (NCP) with appreciation for its comprehensive framework developed in nine chapters to revitalize the rural economy of India. The new policy reflects a futuristic vision, grounded in Indian cultural ethos of cooperation and collective well-being that seeks to transform cooperatives into engines of rural prosperity, inclusivity, and sustainability.

Sahkar-se-Samriddhi:  Inspirational Vision

The call of “Sahkar-se-Samriddhi” given by the Hon’ble Prime Minister Shri Narendra Modi ji is not just a slogan but a strategic roadmap to empower every citizen through the collective strength of cooperation. It builds on the Indian tradition where cooperation is deeply embedded in the cultural fabric. From community farming to local self-help groups, India has long demonstrated the power of collective effort.

Union Home Minister and Minister of Cooperation Shri Amit Shah rightly emphasized that cooperation is the essence of Indian culture, an idea belonging to India and shared with the world. With over 8 lakh cooperative societies, including 2 lakh credit cooperatives and 6 lakh non-credit cooperatives, India has the largest cooperative network in the world. These societies operate across diverse sectors—dairy, housing, fisheries, textiles, sugar, consumer goods, marketing, hospitals, and more. With 30 crore members nationwide, including 13 crore members in Primary Agricultural Credit Societies (PACS), the cooperative sector has an unparalleled outreach and potential to drive equitable growth.

Why a New Policy Now?

The last national policy on cooperatives was framed in 2002. Since then, two decades of transformation through globalization, digitization, and technological advances have reshaped the economic and social landscape. Old frameworks cannot address present challenges—ranging from rural unemployment and agrarian distress to the need for inclusive credit, professionalization, and sustainability.

The constitutional recognition of forming cooperative societies as a fundamental right and the establishment of a  Ministry of Cooperation mark the beginning of a new era. This demands an updated policy that keeps pace with changing realities, strengthens institutions, and nurtures the spirit of cooperation as a people’s movement.

Key Initiatives Underway

The Ministry of Cooperation has already initiated several landmark measures to strengthen the sector:

1. Strengthening PACS and Primary Cooperatives
   • New model by-laws to transform PACS into multipurpose units.
   • Launch of SOPs for forming 2 lakh new PACS, dairy, and fishery cooperatives in uncovered panchayats.
   • Cooperative-led White Revolution 2.0.
   • Decentralized grain storage plans at PACS level—the world’s largest.
   • Cooperative societies included as buyers on the GeM portal.
2. Promoting Cooperation Among Cooperatives
   • Establishment of three new multi-state cooperatives in exports, organic products, and seeds.
   • Nationwide implementation of cooperation among cooperatives campaign.
   • Linking primary cooperatives with Bank Mitra roles, distribution of RuPay Kisan Credit Cards, etc.
3. Fiscal and Legal Reforms
   • Reduction in surcharge on cooperatives with income ₹1–10 crore from 12% to 7%.
   • Reduction of MAT rate from 18.5% to 15%.
   • Enhanced cash withdrawal limit for cooperatives from ₹1 crore to ₹3 crore without TDS.

These measures reflect the Needonomics mandate of focusing on “needs” rather than “greed.” By ensuring cooperatives cater to genuine rural needs—credit, storage, employment, and livelihood—they empower citizens in a sustainable way.

Vision for Viksit Bharat 2047

The vision of the new policy is to significantly contribute to India’s collective ambition of becoming Viksit Bharat by 2047, through cooperative-led sustainable development. The mission is to create a robust legal, economic, and institutional framework enabling cooperatives to become transparent, technology-driven, professionally managed, and self-sustaining entities.

This vision is structured around six strategic mission pillars:

1. Strengthening the Foundation: Building strong grassroots cooperatives.
2. Promoting Vibrancy: Creating a self-reliant and dynamic cooperative ecosystem.
3. Future Readiness: Equipping cooperatives with professional management and technology.
4. Promoting Inclusivity and Deepening Reach: Making cooperatives a people’s movement.
5. Expanding into Emerging Sectors: Encouraging cooperatives to enter sunrise industries—renewables, IT services, e-commerce, etc.
6. Shaping the Young Generation: Introducing cooperative values and experiential learning to inspire youth.

Governance and Implementation Mechanisms

The policy proposes a two-tier governance system for monitoring and implementation:

• A National Steering Committee on Cooperation Policy, chaired by the Union Minister of Cooperation, to ensure policy alignment, inter-ministerial coordination, and strategic guidance.
• A Policy Implementation and Monitoring Committee, chaired by the Union Cooperation Secretary, to focus on execution, troubleshooting, state-centre coordination, and evaluation. It will include representatives from NITI Aayog, NABARD, NDDB, NCDC, NCCT, VAMNICOM, and state cooperative departments.

Such multi-stakeholder coordination is essential for translating policy intent into action.

Needonomics Insights on the Policy

From a Needonomics perspective, the National Cooperation Policy is both timely and essential. It prioritizes needs-based development over greed-driven growth, particularly in rural areas where economic disparities persist.

• For Farmers: Multipurpose PACS and decentralized grain storage will reduce exploitation by middlemen and empower farmers with bargaining power.
• For Women: Women-led cooperatives in dairy, textiles, and self-help initiatives will ensure gender inclusivity.
• For Youth: Cooperative-oriented learning and entrepreneurship programs can convert India’s demographic dividend into cooperative strength.
• For Sustainability: Emphasis on organic farming, local enterprises, and renewable energy aligns with sustainable development goals.

Cooperatives thus become instruments for ensuring economic democracy, where decision-making is decentralized and benefits are equitably shared.

Challenges Ahead

While the policy is ambitious, challenges remain:

• Professionalizing management of cooperatives without diluting democratic principles.
• Preventing political capture of cooperative institutions.
• Ensuring technology adoption in rural areas with limited digital literacy.
• Balancing central oversight with state autonomy.

Addressing these challenges requires capacity-building, transparency, and accountability frameworks that strengthen public trust in the cooperative movement.

Conclusion:

National Cooperation Policy 2025 represents a renewed social contract between the government and citizens, rooted in India’s cultural ethos of cooperation. It is not just an administrative reform but a transformational movement that can make rural India the bedrock of Viksit Bharat 2047. By adopting the Needonomics pathway—development based on needs, sustainability, and inclusivity—the cooperative sector can move beyond economic utility to become a model of collective progress and human dignity. As we move forward, the guiding mantra should remain clear: “From Cooperation to Prosperity—Sahkar-se-Samriddhi.”