{"id":345243,"date":"2025-08-27T18:43:59","date_gmt":"2025-08-27T13:13:59","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=345243"},"modified":"2025-08-27T21:43:40","modified_gmt":"2025-08-27T16:13:40","slug":"national-cooperative-policy-2025","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/national-cooperative-policy-2025\/","title":{"rendered":"National Cooperative Policy 2025"},"content":{"rendered":"

Source:<\/strong> The post National Cooperative Policy 2025 has been created, based on the article \u201cCooperatives at a Crossroads\u201d<\/strong> published in \u201cThe Hindu\u201d<\/strong> on 27th August 2025. National Cooperative Policy 2025.<\/strong><\/p>\n

\"National<\/p>\n

UPSC Syllabus Topic: GS Paper -2- <\/strong>Development processes and the development industry \u2014the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.<\/p>\n

Context: <\/strong>\u00a0Recently, Union Home Minister Amit Shah introduced the new National Cooperative Policy 2025, replacing the framework that had been in effect for 23 years.<\/p>\n

Cooperatives are the backbone of India\u2019s rural and participatory economy, with over 8.44 lakh societies and more than 30 crore members<\/strong>. The National Cooperative Policy 2025<\/strong> aims to rejuvenate the sector under the vision of \u201cSahkar-se-Samriddhi\u201d<\/em>,<\/strong> making cooperatives central to achieving Viksit Bharat 2047<\/strong>.<\/p>\n

Key features of the National Cooperative Policy 2025<\/strong><\/h2>\n
    \n
  1. Legislative & Institutional Reforms:<\/strong> It amend cooperative laws for transparency, autonomy, and ease of business; digitise registrar offices; build real-time databases; revive sick cooperatives.<\/li>\n
  2. Financial Empowerment:<\/strong> It strengthens PACS\u2013DCCB\u2013SCB credit structure; expands cooperative banks\u2019 roles; allows handling of government transactions.<\/li>\n
  3. Business Ecosystem:<\/strong> It promotes model cooperative villages, rural product clusters (honey, spices, tea), and cooperative branding under Bharat<\/em>.<\/li>\n
  4. Technology & Future-Readiness:<\/strong> It develops a national Cooperative Stack with Agri-Stack; integrates with ONDC\/GeM; sets up incubators and Centres of Excellence.<\/li>\n
  5. Inclusivity:<\/strong> It ensures participation of women, youth, SC\/STs, differently-abled; adopt model bye-laws; run awareness drives in schools\/colleges.<\/li>\n
  6. Sectoral Diversification:<\/strong> It encourages cooperatives in renewable energy, waste management, healthcare, education, organic farming, biogas, ethanol, and digital aggregator services.<\/li>\n
  7. Youth Capacity Building:<\/strong> It launches cooperative courses in higher education, creates a digital cooperative job exchange, promotes digital and financial literacy.<\/li>\n<\/ol>\n

    Rationale Behind the Policy<\/strong><\/h2>\n
      \n
    1. Economic Modernisation<\/strong>: Cooperatives need to align with new-age sectors like renewable energy, shipping, and technology.<\/li>\n
    2. Financial Inclusion<\/strong>: To expand credit reach to farmers, artisans, and rural communities where banking penetration is weak.<\/li>\n
    3. Uniform Standards<\/strong>: Addressing governance gaps and scam-related credibility issues by standardising rules across states.<\/li>\n
    4. Employment Generation<\/strong>: Tapping cooperative structures to create entrepreneurial opportunities for youth in a rapidly urbanising economy.<\/li>\n<\/ol>\n

      Concerns & Challenges<\/strong><\/h2>\n
        \n
      1. Federalism Issues<\/strong> \u2013 Cooperative societies fall under the State List (Entry 32) of 7th Schedule of Constitution<\/strong>; central policy intervention raises fears of unconstitutional overreach.<\/li>\n
      2. Political Suspicions<\/strong> \u2013 States like Kerala allege that the policy is a move by the Centre to wrest control over their strong cooperative networks.<\/li>\n
      3. Scam & Credibility Crisis<\/strong> \u2013 Many cooperative banks face allegations of embezzlement and mismanagement, undermining depositor confidence.<\/li>\n<\/ol>\n