‘Union Home Minister and Minister of Cooperation Amit Shah.’ Two roles, one mission, two leaders, one team and two simultaneous movements rolled in one. When Shah was given the double charge for the second time in the Modi 3.0 government, there was happiness in the cooperative sector across India, as reports pointed out. The Modi government’s determination to bring a turn around in India’s cooperative sector was beginning to show promise and change — particularly in the Khadi sector during Modi 2.0.
Shah has strongly asserted his support to PM Modi’s Swadeshi call while linking the role of cooperatives to the success of Swadeshi 2.0. Last week, Shah highlighted the role of India’s rural economy and cooperatives in strengthening the purchasing power of Indians, in supporting production and manufacturing through cooperatives and in supporting initiatives in the realm of creating a circular economy through cooperatives. He has credited PM Modi for rejuvenating cooperatives and rural economy through policies centered on cooperatives. He is lending power to Swadeshi in two roles: as Minister for Cooperation and as a leader who understands how India can reap interconnections amid the tariff issues.
Momentum and interconnections
Today, Shah’s efforts aim to increase cooperative membership by 30 per cent — from 8.3 lakh, and to establish a primary cooperative unit in every panchayat. Shah has set a massive target — cooperatives contributing three times more to India’s GDP by 2034. Work is underway to establish an insurance cooperative. Shah is known for understanding interconnections through his own observations, more importantly in PM Modi’s vision, his own quality of energising movements that involve organisational strengths, his own close understanding of cooperatives in Gujarat and outside, and his understanding of “security” in different dimensions.
It is natural that Shah has chosen to stir up momentum for India’s Swadeshi 2.0 by linking it with India’s cooperative prosperity and prospects. Shah is a man of momentum and action when it comes to reforms. At this point, he seems determined to make the change in the common man’s life, give cooperatives the maximisation of capabilities, strengths, status and confidence, infuse life in rural India with prosperity through measured steps, and use outcomes created — to energise India’s economy, self-reliance, and Swadeshi.
Shah has said that PM Modi has initiated a new lease of life for the country’s rural economy. Under Shah, India has witnessed the unveiling of National Cooperation Policy – 2025, with the valued leadership-contribution of former minister in Modi cabinet and senior BJP leader Suresh Prabhu, continuing the NDA’s tradition of making efforts to uplift cooperatives with the Cooperation Policy in 2002.
‘No alternative to Swadeshi’
For the first time, Shah has categorically mentioned that there is “no alternative to adopting Swadeshi” when it comes to the goal of making India reach the top in the global economy. He has mentioned that all doubts, questions, question marks and uncertainties, related to the future of cooperatives, have been erased during the last three years of Modi government’s focus on cooperatives. According to Shah, India’s upward movement in economy — from 11th position to 4th was made possible by PM Modi, and the crucial shift — from 4th to the 3rd spot — would become possible when 140 crore Indians stand by Swadeshi with their massive and robust purchasing power.
This approach is expected to further energise the nationalist character — of not only PM Modi’s call for Swadeshi, but has also helped establish a connection in people’s mind between cooperatives, their future, Swadeshi, and India’s self-reliance. He has urged farmers in Haryana and Maharashtra to adopt Swadeshi, and urged traders in Goa to embrace Swadeshi products. In Bastar, he has reportedly referred to the efforts of the Swadeshi Mela of the Swadeshi Jagran Manch in propagating Swadeshi, and has urged traders and people to not buy or stock “videshi” goods.
The high point in Haryana
The Modi-government is moving towards the massive step of linking every village to the cooperative movement by 2029. Last week, CM Saini-led Haryana government celebrated prosperity through cooperatives and the state government’s focussed approach towards rural prosperity through cooperative interventions and khadi, in the presence of Shah. The state ranks third in milk production. Saini credited PM Modi for the mantra of ‘Sahkar Se Samriddhi’ and the establishing of the Ministry of Cooperation in 2021 for energising the cooperative sector. Shah inaugurated the second phase of the Sabar Dairy (Amul Plant) in Rohtak. Its expansion at the cost of 325 crore has had a transformative impact in the region — according to CM Saini.
The Haryana dairy facility is reportedly the largest producer of curd, yogurt and buttermilk, and plays a significant role as an employment generator and catalyst for the region’s rural economy. At this event, Shah mentioned that the dairy sector has grown by 70 per cent during the last 11 years. Khadi bears a profound cultural, emotional, and historical association with the Swadeshi movement and with Modi’s call for self-reliance over the years. Haryana considers dairy and Khadi as prime contributors to its growth goals to 2047. Shah mentioned in Haryana that under the Modi government, Khadi has grown into a Rs 1.70 lakh crore industry.
Taking ‘Sahkar se Samriddhi’ to ground
The panning out of the success of Swadeshi 2.0 will depend on how well the states use the strengths of the cooperatives to maximise their essence and outcomes for ‘Vocal for Local’ and ‘Make in India’ initiatives. The introduction of the National Cooperation Policy 2025 is expected to focus on transparency, technology, and inclusivity and has been aligned with PM Modi’s vision of ‘Sahkar se Samriddhi’ to achieve goals with a practical approach with the objective of the powerful aspects of villages, agriculture, rural women, Dalits, and tribals at the core. These specific areas of human strengths — rural women, dalits and tribals — central to the policy — will bind local resources, traditional skills and expression together.
When Shah mentions the importance of bringing the cultural shift — from “cooperatives have no future” to “the future belongs to cooperatives only,” he means business. The Policy unveiled looks at a 30 per cent increase in the number of cooperative societies, with an objective to create one cooperative society in every village. That’s not all. Ahead of 100 years of Independence in 2047, the government aims to triple the cooperative sector’s contribution to GDP by 2034. Connection of youth with the employment opportunities in the cooperative sector will be built alongside the work of bringing 50 per cent crore active members to the fold.
Sugar-sweet Maharashtra: inspiration for Amit Shah’s circular economy pitch
Shah’s presence in Maharashtra last week brought a new dimension of cooperative prosperity to the fore. In Ahilyanagar, he inaugurated the first cooperative multi-feed compressed Biogas plant. The mention of the biogas plant inauguration may sound like a run of the mill event, but it is not.
Here’s why. It establishes the important facet of circular economy — 100 per cent circular economy which Shah aims to make a core mantra of the cooperative movement — a concept in economics where material and products are used in a way that they are kept in circulation — allowing a refurbishing, sustenance, reuse, remanufacturing and use of wastage even. PM Modi, in the past, has mentioned the traditional Indic strength and sense to recycle, reuse and refurbish in different concepts. He usually attributes it to women. The Modi government, with Shah as the main force in converging aspects of production and manufacturing through cooperatives, is aiming to bring that Indic quality and attribute to the work of revitalising and rejuvenating cooperatives.
It is the first time in the history of India’s cooperative sugar mills, that “the establishment of a Compressed Biogas (CBG) plant and a potash granule production unit is being initiated”, a government document mentions. Even more vital is Shah’s intervention in Maharashtra — the state where the “cooperative sugar factories originated” according to him — to formally begin the implementation of a 100 percent circular economy for sugar factories. “This plant will produce 12 tons of CBG daily and 75 tons of potash from jaggery, reducing the import of these products from abroad,” he said.
The initiative is not limited to this plant. Selected 15 will be supported by the Modi government to establish the infrastructure and the feat — of biogas plants and potash-granule production units and their linkage with the mills. The government is also urging and encouraging sugar mills to undertake fruit processing, cultivation of fruit, to assert increase in profits.
Cooperation within, strengthening within
Shah’s statements indicate that the government is aware that cooperation might need interventions even in strengthening from within in addition to government support and cooperation. For this, the government has identified 83 intervention points. Shah has informed the media that out of the 83 points, work is over on 58, full implementation has taken place on 3, while 2 points require implementation on a continuous basis and ongoing efforts. He has also highlighted that if the states “implement this policy diligently, it will lead to the creation of an inclusive, self-reliant, and future-ready model, which will give a new shape to the country’s cooperative system.”
Here are some of the important highlights in Shah’s recent public interactions that underline steps towards building self-reliance in connection with rural economy:
1) He has mentioned ‘Mission for Aatmanirbharta in Pulses’ with Rs 11,440 crore — which aims at establishing 1,000 processing units and distribution of 88 lakh high-quality seed kits.
2) Reduction of GST to 5 per cent on several agricultural items – aimed at benefiting farmers.
3) He has mentioned that the Modi government is looking at establishing cooperative societies in tourism, taxi services, insurance, and green energy through the new cooperative policy.
4) He has mentioned that the Modi government is working to ensure bringing well-performing scheduled cooperative banks at par with commercial banks and preserving their status.
5) He has highlighted the establishment of National Cooperative Exports Limited and a technology-driven development of a model for Primary Agricultural Credit Societies.
6) An exciting aspect: the Modi government’s aim to build prospects for careers in cooperatives for India’s youth — through the Cooperation Policy.
7) A 25-year deadline to make the cooperative sector at par with other sectors. Another indication of work to uplift cooperatives from a past of neglect or lack of attention.
8) He has informed that “work of setting up 45,000 new Primary Agricultural Credit Societies (PACS) is nearly complete” and computerization of PACS is complete. This is a massive step from the government towards empowering cooperatives, giving farmers better incomes, and bolstering rural economy and rural incomes.
9) The establishment of multi-state cooperative societies for exports, seed production, and branding and marketing of organic products.
10) Shah has highlighted that “White Revolution 2.0 will become a major pillar of rural development in the coming days, with increased participation of women being a key focus.” This point is of great value as it links a massive national movement (of revitalising cooperatives) with the energies, capabilities, skills, contribution, and self-reliance in women. The building of a silent movement within a movement — cannot be ruled out.
In May, Shah chaired a high-level review meeting meant to assess the progress of three National Cooperative Exports Limited (NCEL), National Cooperative Organics Limited (NCOL), and Bharatiya Beej Sahkari Samiti Limited (BBSSL). These are India’s three key cooperative institutions created by PM Modi under the “Whole of Government” approach.
They are dedicated to the vital areas of quality seed development, cooperative exports, and organic farming — aspects that contribute to rural economy. While Shah unfolds new and newer aspects of policy and governance to develop the cooperative sector, there could be an intense build up of momentum and strengths for PM Modi’s Swadeshi vision and India’s own renewed tradition of creating, purchasing, manufacturing, rejuvenating and preserving.
