International Year of Cooperatives 2025: India’s Cooperative Push for Inclusive Growth

The International Year of Cooperatives 2025 comes at a time when inclusive growth and community-led development are gaining global focus. India has used this opportunity to strengthen its cooperative ecosystem through reforms, digitalisation, new institutions, and financial support, reinforcing cooperatives as a key pillar of grassroots economic development.

Why in News?

The United Nations declared 2025 as the International Year of Cooperatives under the theme “Cooperatives Build a Better World”. India has showcased wide-ranging achievements and reforms in the cooperative sector aligned with this global initiative.

International Year of Cooperatives 2025: Global Context

The declaration of IYC 2025 recognizes the role of cooperatives in achieving the Sustainable Development Goals (SDGs) by 2030.

• Cooperatives promote shared ownership and democratic decision-making.
• They address challenges like poverty, inequality, and sustainable livelihoods.
• The year aims to mobilise governments and institutions to strengthen cooperative enterprises.

Globally, cooperatives are seen as people-centric economic models that balance growth with social responsibility.

Cooperative Movement in India: Background

India’s cooperative philosophy is rooted in “Vasudhaiva Kutumbakam” and strengthened through policies like “Sahkar se Samriddhi”.

• Legal foundation laid by the Cooperative Credit Societies Act, 1904.
• Major institutions include National Cooperative Development Corporation and NABARD.
• Creation of the Ministry of Cooperation in July 2021 gave focused attention to the sector.

As of December 2025, India has over 8.5 lakh cooperatives, serving 32 crore members across 30 sectors, covering nearly all rural areas.

Strengthening Primary Agricultural Credit Societies (PACS)

PACS form the backbone of rural cooperatives and have been strengthened through reforms and digitalization.

• Model Bye laws allow PACS to undertake over 25 business activities.
• Focus on women and SC/ST inclusion in governance.
• 79,630 PACS approved for computerization under a national ERP platform.

So far, 59,261 PACS actively use ERP software, 32,119 PACS function as e-PACS, and over 34 crore transactions have been processed digitally, improving transparency and efficiency.

Expansion of Multipurpose and New Cooperatives

The government has promoted new cooperatives to ensure village level coverage.

• 32,009 new PACS, dairy, and fisheries cooperatives registered.
• PACS now operate in over 2.55 lakh Gram Panchayats.
• Dairy cooperatives cover 87,159 GPs, fisheries cooperatives nearly 30,000 GPs.

These cooperatives act as local service hubs, improving access to credit, markets, and government schemes.

Integration with Government Schemes

PACS are being transformed into multi-service centres.

• Over 38,000 PACS upgraded as PM Kisan Samriddhi Kendras.
• Many PACS operate as Common Service Centres (CSCs).
• World’s largest decentralised grain storage plan implemented at PACS level.

Under the pilot phase, 112 PACS have completed godowns with 68,702 MT storage capacity, reducing post-harvest losses.

National-Level Cooperative Institutions

Three major national cooperatives strengthen production and exports.

• National Co-operative Exports Limited exported 13.77 LMT worth Rs.5,556 crore to 28 countries.
• National Cooperative Organics Limited supports organic farming with 28 certified products.
• Bharatiya Beej Sahakari Samiti Limited strengthens the seed ecosystem under the “Bharat Beej” brand.

These institutions improve market access and income for farmers and cooperatives.

White Revolution 2.0 and Financial Inclusion

White Revolution 2.0 aims to expand dairy cooperatives and women’s participation.

• Target to increase milk procurement by 50% in five years.
• Over 20,000 new Dairy Cooperative Societies registered.
• Cooperative Bank Mitras and RuPay Kisan Credit Cards promote digital financial inclusion.

Key Summary at a Glance

Question

Q. The International Year of Cooperatives 2025 was declared by:

A) World Bank
B) International Cooperative Alliance
C) United Nations
D) IMF