National Cooperative Policy 2025: Key Features, Objectives and Impact on Rural India

National Cooperative Policy 2025 was launched on 24th July, 2025. Know how National Cooperative Policy 2025 will bring a new vision for India’s cooperative movement.

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July 25, 2025

National Cooperative Policy 2025: Key Features, Objectives and Impact on Rural India

National Cooperative Policy 2025 was launched on July 24, 2025 by Union Minister Amit Shah. This focuses on establishing one cooperative per village and 2 lakh Primary Agricultural Credit Societies by February 2026, focusing on digital adoption, transparency, and financial support with the vision “Sahkar se Samriddhi.”

National Cooperative Policy 2025 was launched on 24 July 2025 by the Government of India in New Delhi. It was led by the Union Home Minister and Minister of Cooperation, Amit Shah. This new policy aims to replace the two-decade-old 2002 framework. 

This policy focuses on modernizing and strengthening India’s cooperative sector because these factors play an important role in driving rural economies and supporting inclusive growth.

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It sets a target of establishing at least one cooperative in every village and creating 2 lakh Primary Agricultural Credit Societies (PACS) by February 2026. It focuses on digital adoption, management, financial transparency, and skill-building.

National Cooperative Policy 2025 comes with the vision of “Sahkar se Samriddhi” (Prosperity through Cooperation). It will work to revive dormant societies, empower farmers, artisans, and rural entrepreneurs, and support the government’s goal of making our country a developed and a self-reliant nation by 2047. 

Also Read: International Year Of Cooperatives (IYC) 2025

What is National Cooperative Policy 2025?

National Cooperative Policy 2025 was launched on July 24, 2025. This initiative aims to reform India’s cooperative sector by introducing a common legal and operational structure. It will make cooperatives more transparent, efficient, and able to compete with private businesses.

The policy includes clear provisions for financial support, training, digital adoption, and regular audits to help cooperatives become more sustainable. It will give priority to farmer-led cooperatives with special measures to improve their access to credit and technology.

Objective of National Cooperative Policy

It is important to understand the objective of National Cooperative Policy 2025. The main objective is to strengthen the cooperative sector across the country. It focuses on various aspects like:

  • Upgrading cooperative institutions with digital tools
  • Ensuring transparency and accountability through regular audits
  • Providing financial support and training to cooperatives in both rural and urban areas
  • Promoting healthy competition between cooperatives and private businesses
  • Supporting the creation of new cooperatives in sectors like agriculture, dairy, fisheries, and housing

With these steps, the policy aims to make cooperatives a strong pillar of rural development and an important part of India’s economy.

Evolution of Cooperative Movement in India

The cooperative movement in India has evolved over more than a century, beginning with informal community efforts and later becoming a formal, legal framework to address the needs of rural populations and farmers. Below is the timeline of its evolution:

Evolution of Cooperative Movement in India
Period Key Developments
Pre-Legislation (Before 1904) Informal cooperation existed through practices like community-built assets 
1904 – Cooperative Credit Societies Act First official law to organize credit cooperatives and aimed at protecting farmers from moneylenders by providing affordable credit.
1912 – Cooperative Societies Act It expanded the scope to include non-credit cooperatives such as marketing societies, handloom weavers, and artisans.
1914 – Maclagan Committee This committee proposed a three-tier cooperative banking system at central, provincial, and district levels.
1919 – Government of India Act It empowered provinces to create their own cooperative laws.
1925 – Bombay Cooperative Societies Act The first cooperative legislation passed by a provincial government, following the 1919 Act.
1942 – Multi-Unit Cooperative Societies Act It regulated cooperatives operating across provinces and delegated powers from the Central Registrar to State Registrars for practical administration.
Post-Independence (1947 onwards) The cooperatives integrated into Five-Year Plans to promote decentralized economic power and development.
1963 – Establishment of NCDC National Cooperative Development Corporation (NCDC) was created to finance and support cooperative development.
1982 – Establishment of NABARD National Bank for Agriculture and Rural Development (NABARD) set up to strengthen rural credit and agricultural cooperatives.
1984 – Multi-State Cooperative Societies Act It streamlined laws governing cooperatives across states.
2002 – National Policy on Cooperatives It was introduced to harmonize the legal framework and strengthen the cooperative sector nationwide.
2023 – MSCS Amendment Act This Act brought governance reforms, transparency measures, and structural changes to empower Multi-State Cooperative Societies (MSCS)

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Types of Cooperative Societies in India

The cooperative movement in India has grown to serve people in various ways. Below is a detailed look at the types of cooperative societies in India, along with their purpose and examples: 

  1. Consumers’ Cooperative Society: This society provides consumer goods at fair prices by buying directly from producers. For example: Kendriya Bhandar, Apna Bazar.
  2. Producers’ Cooperative Society: This society is formed to help small producers by supplying raw materials, machinery, and other essentials to improve production and profitability. For example: APPCO, Haryana Handloom
  3. Cooperative Marketing Society: It supports small producers and farmers by collectively marketing and selling their products. For example: Gujarat Cooperative Milk Marketing Federation (AMUL). 
  4. Cooperative Credit Society: It provides financial help to members by collecting deposits and offering loans at affordable interest rates. For example: Village Service Cooperative Society, Urban Cooperative Banks. 
  5. Cooperative Farming Society: This society gives a chance to small farmers to come together and benefit from large-scale farming methods. For example: Pani-Panchayats and Lift-Irrigation Cooperatives. 
  6. Housing Cooperative Society: It helps members buy or develop affordable housing by collectively purchasing land and constructing residential properties for its members. For example: Metropolitan Housing Cooperative Society and Employees’ Housing Societies. 

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National Cooperative Policy 2025 FAQs

National Cooperative Policy 2025 is a new government initiative aimed at reforming and modernizing India’s cooperative sector. It focuses on digital upgrades, financial support, improved governance, and empowering farmers and small businesses.

The objective of National Cooperative Policy 2025 is to make cooperatives more transparent, financially stable, and competitive.

The policy will revitalize the cooperative movement in India by upgrading institutions with digital tools, ensuring fair audits, and giving cooperatives better access to credit and technology.

Housing, farming, consumer, and producer cooperatives are some types of cooperative societies in India that will receive financial and regulatory support under the policy.

National Cooperative Policy 2025 was launched on 24th July 2025.

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