Union Home and Cooperation Minister Amit Shah has set a deadline of January 31, 2026, for all states to announce their cooperative policies, aligning with the National Cooperative Policy which will be effective from 2025 to 2045. This directive aims to revitalize India's cooperative movement and boost employment opportunities for its 1.4 billion citizens. Shah made this announcement during a "Manthan Baithak" with the Ministers of Cooperation of all States and Union Territories on June 30, 2025.
The National Cooperative Policy 2025-2045 envisions establishing cooperatives in every village across India within the next five years. A key component of this vision is the creation of 200,000 Primary Agricultural Credit Societies (PACS) by February 2026. These societies are intended to ensure financial access and agricultural support in rural areas. To achieve this, the target for the financial year 2025-26 should be completed by February next year to fulfill the goal on time.
Shah emphasized that each state's cooperative policy should be formulated according to its specific cooperative conditions and goals under the National Cooperative Policy. A Model National Cooperative Policy Act is also expected to bring discipline, innovation, and transparency to the cooperative sector nationwide.
The Union Minister identified several reasons for the weakening of the cooperative movement in India, including outdated laws, a lack of expansion and adaptation in cooperative activities, and nepotism in recruitment. To address these issues, the government has amended laws and conceived the idea of Tribhuvan Sahkari University (TSU) to build a skilled workforce for the cooperative sector. Shah urged states to affiliate at least one training institution with TSU to manage all cooperative education.
The government has taken several initiatives to revitalize the cooperative sector. The Ministry of Cooperation (MOC) was established on July 6, 2021, with a strong commitment to strengthening and modernizing cooperatives. A landmark project to computerize 63,000 PACS is underway, enhancing operational efficiency and linking PACS with NABARD. Model bylaws are being implemented to make PACS multipurpose and strengthen them through computerization as Common Service Centers (CSCs) for better access to e-services. Furthermore, the government is promoting natural farming and inter-cooperative models.
Shah highlighted the importance of integrating rural development, agriculture, and animal husbandry under a unified approach. He also noted the growing role of PACS, which now operate in over 20 states and offer services beyond agricultural finance. The government is promoting seed, organic, and export cooperatives to ensure farmers receive fair prices and direct payments.
The United Nations has declared 2025 as the International Year of Cooperatives, with India playing a leading role. The government aims to position the cooperative movement as a key pillar of "Viksit Bharat" (Developed India) by strengthening PACS, promoting tech-driven transparency, and enhancing citizen participation.
Shah emphasized that cooperation is the only option for generating employment and ensuring economic participation for all 140 crore Indians. The government's vision is to ensure the presence of cooperative institutions in every village within the next five years, empowering over 60 crore people.
In addition to the national policy, the government is focused on strengthening urban cooperative banks and credit societies. The cooperative banks have been brought under the Banking Act, and the Reserve Bank of India (RBI) has adopted a flexible approach to address their problems.
