Coop sector to triple contribution to GDP

Union Home Minister and Minister of Cooperation Amit Shah on Thursday unveiled the National Cooperative Policy – 2025 in New Delhi, announcing an ambitious target to triple the cooperative sector’s contribution to India’s GDP by 2034.

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The policy also aims to expand active cooperative membership to 50 crore citizens and establish at least one cooperative society in every village, transforming the cooperative movement into a cornerstone of India’s development model.

Shah stated that the cooperative sector holds a unique power to drive inclusive economic growth by mobilizing grassroots participation in support of Prime Minister Shri Narendra Modi’s vision of Sahkar Se Samriddhi (Prosperity through Cooperation). The National Cooperative Policy – 2025 envisions a 30% increase in cooperative societies, targeting the current 8.3 lakh societies for significant expansion. It focuses on rural inclusion, prioritizing villages, agriculture, rural women, Dalits, and tribals. Key initiatives include developing five model cooperative villages in every tehsil and forming new cooperatives in emerging sectors such as tourism, taxi services, green energy, and insurance.

“The future belongs to cooperation,” Shah said at the event, which was attended by key figures including Union Minister of State for Cooperation Krishan Pal Gurjar, Cooperation Secretary Dr. Ashish Kumar Bhutani, and former Union Minister Suresh Prabhu, who chaired the 40-member committee responsible for drafting the policy.

Shah stressed that India’s rise as the third-largest global economy must be paralleled by inclusive development for all 1.4 billion citizens. “Only the cooperative sector has the inherent capacity to ensure equitable growth by channeling small contributions into large-scale, people-centric enterprises,” he said.

The policy is structured around six strategic pillars—strengthening cooperative foundations, enhancing vibrancy, preparing for future challenges, expanding inclusivity, entering new sectors, and engaging youth. Key reforms include the introduction of cluster-based monitoring systems, the promotion of technology-driven transparency, and a plan for legal updates every 10 years to maintain the policy’s relevance and effectiveness.

The Minister also highlighted significant progress under the Modi government’s cooperative agenda. He noted that the establishment of 45,000 new Primary Agricultural Credit Societies (PACS) is nearing completion. PACS have also begun expanding into public services, including the operation of Jan Aushadhi Kendras, fuel retail outlets, LPG distribution, and water supply schemes.

Furthermore, a ‘Sahkar Taxi’ initiative is set to launch by the end of the year, ensuring 100% profit retention by drivers. The upcoming Tribhuvan Sahkari University will also support the sector by providing specialised, trained manpower.

Shah underscored that well-performing cooperative banks will be treated on par with commercial banks, and highlighted steps being taken to provide the cooperative sector with global access through the National Cooperative Exports Limited.

“The National Cooperative Policy – 2025 positions the cooperative sector as a member-centric, future-ready contributor to India’s development journey. This policy will ensure that cooperatives are no longer seen as outdated models, but as powerful engines of inclusive and sustainable growth leading up to 2047,” he said.

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