NEW DELHI: In a sweeping reform aimed at reviving India's cooperative movement and boost employment, Union home and cooperation minister Amit Shah on Monday announced that the National Cooperative Policy 2025–2045 will be unveiled soon, to establish at least one cooperative in every Indian village within the next five years.
Speaking at a high-level meeting of state cooperation ministers during the celebrations marking the upcoming International Year of Cooperatives (IYC) 2025, Shah said the policy will play a critical role in transforming the cooperative sector into a major economic pillar that empowers India's 1.4 billion citizens.
"Under the National Cooperative Policy, each state's cooperative policy will be formulated according to the cooperative conditions of that state and specific goals will be set," Shah said.
Policy push for 2 lakh new PACS by 2026
A central focus of the upcoming policy is the creation of 2 lakh new Primary Agricultural Credit Societies (PACS) by February 2026. These grassroots institutions, Shah said, are essential for ensuring financial access and agricultural support in rural areas.
He set a January 31, 2026, deadline for all states to announce their individual cooperative policies aligned with the national vision.
Shah cited three main reasons behind the weakening of the cooperative movement in India: laws were not changed over time, cooperative activities were neither expanded nor adapted with time, and recruitments were based on nepotism.
To address these challenges, Shah highlighted the creation of Tribhuvan Sahkari University (TSU) — a first-of-its-kind institution aimed at building skilled manpower for the cooperative sector.
Strengthening cooperative banks and credit societies
Urban cooperative banks and credit societies also came under the spotlight. Shah noted that bringing these banks under the Banking Regulation Act and ensuring more oversight by the Reserve Bank of India has already led to the resolution of key issues.
Natural farming and inter-cooperative models
Shah called on state cooperation ministers to work in sync with agriculture departments to promote natural and organic farming.
He cited Gujarat's "Cooperation Amongst Cooperatives” model as a successful case study, encouraging its replication nationwide. Shah also praised the PM Modi government's achievements from 2014 to 2024, highlighting how basic needs like housing, water, and food were met, and how the next step is to empower people as entrepreneurs through cooperatives.
What else was discussed
The day-long meeting also focused on:
In the bigger picture
With India set to chair the International Year of Cooperatives 2025 , the upcoming National Cooperative Policy is expected to redefine the role of cooperation in economic development, aiming to make villages the new engines of prosperity through bottom-up empowerment.
Speaking at a high-level meeting of state cooperation ministers during the celebrations marking the upcoming International Year of Cooperatives (IYC) 2025, Shah said the policy will play a critical role in transforming the cooperative sector into a major economic pillar that empowers India's 1.4 billion citizens.
"Under the National Cooperative Policy, each state's cooperative policy will be formulated according to the cooperative conditions of that state and specific goals will be set," Shah said.
Policy push for 2 lakh new PACS by 2026
A central focus of the upcoming policy is the creation of 2 lakh new Primary Agricultural Credit Societies (PACS) by February 2026. These grassroots institutions, Shah said, are essential for ensuring financial access and agricultural support in rural areas.
He set a January 31, 2026, deadline for all states to announce their individual cooperative policies aligned with the national vision.
Shah cited three main reasons behind the weakening of the cooperative movement in India: laws were not changed over time, cooperative activities were neither expanded nor adapted with time, and recruitments were based on nepotism.
To address these challenges, Shah highlighted the creation of Tribhuvan Sahkari University (TSU) — a first-of-its-kind institution aimed at building skilled manpower for the cooperative sector.
Strengthening cooperative banks and credit societies
Urban cooperative banks and credit societies also came under the spotlight. Shah noted that bringing these banks under the Banking Regulation Act and ensuring more oversight by the Reserve Bank of India has already led to the resolution of key issues.
Natural farming and inter-cooperative models
Shah called on state cooperation ministers to work in sync with agriculture departments to promote natural and organic farming.
He cited Gujarat's "Cooperation Amongst Cooperatives” model as a successful case study, encouraging its replication nationwide. Shah also praised the PM Modi government's achievements from 2014 to 2024, highlighting how basic needs like housing, water, and food were met, and how the next step is to empower people as entrepreneurs through cooperatives.
What else was discussed
The day-long meeting also focused on:
- Multi-Purpose PACS (M-PACS) to diversify rural cooperative activities.
- Promotion of dairy and fisheries cooperatives.
- Rollout of the world’s largest grain storage scheme in the cooperative sector.
- Review of three new national multi-state cooperative societies:
- National Cooperative Export Limited (NCEL)
- National Cooperative Organic Limited (NCOL)
- Bharatiya Beej Sahkari Samiti Limited (BBSSL)
- Plans for white revolution 2.0.
- Digitisation and computerisation of PACS and Registrar of Cooperative Societies offices.
In the bigger picture
With India set to chair the International Year of Cooperatives 2025 , the upcoming National Cooperative Policy is expected to redefine the role of cooperation in economic development, aiming to make villages the new engines of prosperity through bottom-up empowerment.
You may also like
EasyJet flight forced to divert back to UK airport in 'extraordinary circumstance'
Stephen Mulhern's You Bet! suspended by ITV as fire engines rush to scene
Arlene Phillips reveals 'tough' Strictly exit after finding out about axe on radio
Tim Henman blasts 'bizarre' Carlos Alcaraz live on BBC's Wimbledon coverage
IAF strip, used in 3 wars, secretly 'sold off' using fake papers
