The Cooperative Revolution: National Cooperative Policy 2025 and the Road to Viksit Bharat

India’s cooperative movement has long served as a vital pillar for rural empowerment and inclusive economic growth. From the dairy revolution led by AMUL to the fertilizer distribution networks of IFFCO and KRIBHCO, cooperatives have played a transformative role in shaping India’s socio-economic landscape. With the launch of the New Cooperative Policy (NCP) on 24^th July 2025, the sector is poised for a renaissance, one that aligns seamlessly with Prime Minister Narendra Modi’s vision of Viksit Bharat 2047, a developed and self-reliant India by its centenary of independence.

The NCP 2025 is a comprehensive and forward-looking framework designed to modernise, democratise, and energise India’s vast cooperative ecosystem, which includes over 8.5 lakh cooperatives and more than 30 crore members. The policy rests on six strategic pillars: strengthening the foundation of cooperatives through legal reforms and digitisation; promoting vibrancy by enhancing competitiveness and branding; making cooperatives future-ready with the adoption of emerging technologies like AI, IoT, and blockchain; deepening inclusivity by focusing on women, youth, and marginalised communities; expanding into new and emerging sectors such as green energy, organic farming, health, and tourism; and shaping the next generation through cooperative education and youth engagement.

One of the most ambitious goals of the policy is the digitisation of over 63,000 Primary Agricultural Credit Societies (PACS), bringing transparency and efficiency to ₹1.5 lakh crore worth of rural credit. The creation of a National Cooperative Database will enable data-driven decision-making and policy formulation. Integration with platforms like ONDC will allow cooperative products to reach national and global markets, boosting rural entrepreneurship and exports. The government aims to double cooperative exports by 2030, positioning India’s cooperative sector as a key contributor to the national economy.

The policy introduces Model Bye-laws for PACS, enabling them to undertake over 25 business activities, including agri-services, storage, processing, and retail. A national ERP-based software will link all PACS, enhancing transparency and governance. To ensure universal coverage, the government plans to establish new multipurpose PACS, dairy, and fisheries cooperatives in every panchayat over the next five years, supported by NABARD, NDDB, and NFDB. This will ensure ‘last-mile’ delivery of cooperative services and financial inclusion.

In a major push for infrastructure development, PACS will be equipped with warehouses, custom hiring centers, and primary processing units through the convergence of schemes like AIF, AMI, SMAM, and PMFME. These facilities will reduce food grain wastage, cut transport costs, and improve farmer incomes. The policy also introduces relief under the Income Tax Act for cooperative societies, improving their financial viability and encouraging reinvestment.

To further strengthen the sector, three new national-level multi-state cooperative societies have been established: National Cooperative Organics Limited (NCOL), National Cooperative Exports Limited (NCEL), and Bharatiya Beej Sahakari Samiti Limited (BBSSL). These institutions will respectively promote organic farming, exports, and seed distribution. Cooperative banks will also be strengthened through improved capital base, governance, and outreach, especially in rural areas.

The policy places a strong emphasis on youth involvement, recognising that India’s demographic dividend 65% of the population under the age of 35, must be harnessed to drive innovation and leadership in the cooperative space. Cooperative education will be introduced in schools and universities, while internships, innovation challenges, and leadership development programs will empower young Indians to take active roles in governance and enterprise. A dedicated Cooperative Education Fund (CEF) and training programs through NCCT and Higher Education Institutions (HEIs) will ensure capacity building at scale.

By aligning cooperative development with the goals of Viksit Bharat, the New Cooperative Policy 2025 reimagines cooperatives as engines of economic dynamism, social equity, and technological advancement. It promises to uplift rural communities, empower women and youth, and create sustainable livelihoods across sectors. 

As India marches toward 2047, cooperatives will be at the heart of this journey, bridging tradition with innovation and community with opportunity. The policy is a roadmap and a movement that invites every Indian to participate in building a prosperous, inclusive, and resilient nation.