·PIB·15 marks·250–350 wordsPolity

Evaluate the role of the Ministry of Cooperation in promoting cooperative-based enterprises as an alternative economic model in India.

In this answer
  1. Policy and institutional architecture built
  2. Extending cooperatives into new sectors
  3. Limitations

Created in July 2021 to realise the vision of "Sahkar se Samriddhi", the Ministry of Cooperation seeks to make cooperatives a third pillar of the economy alongside public and private enterprise [4]. Its record shows genuine institution-building, though the alternative model remains nascent.

Policy and institutional architecture built

  • National Cooperative Policy 2025, unveiled on 24 July 2025, sets a 2025–45 roadmap of 6 pillars, 16 objectives and 83 recommendations, targeting inclusion of 50 crore members and tripling the sector's economic contribution in a decade [5].
  • Over 114 major initiatives in four years, including Model Bye-Laws allowing PACS to undertake 25+ business activities, converting the village credit society into a multipurpose enterprise [4].
  • Digitisation and diversification: computerisation of PACS into e-PACS, 52,018 PACS delivering CSC e-services and 38,330 upgraded to PM Kisan Samriddhi Kendras [4].

Extending cooperatives into new sectors

  • Bharat Taxi, India's first cooperative-owned digital mobility platform, registered under the Multi-State Cooperative Societies Act, 2002, breaks the cooperative sector out of its agri-credit confines [2].
  • Its "Sarathi hi malik" model gives drivers share certificates, profit participation and governance voice instead of commission-paying gig "partner" status, with ₹5 lakh accident and health insurance cover [3].
  • In Jaipur, 30,000+ Sarathis and nearly 7 lakh customers joined, with fares 10–15% below private aggregators and no surge pricing [1].

Limitations

  • Scale remains small — roughly 11,000 daily trips nationally against millions on private aggregators [1]; viability without state patronage is untested.
  • Cooperatives are a State subject (Entry 32, List II); the multi-state route can strain cooperative federalism.
  • Top-down promotion risks bureaucratisation, weak professional management and thin audit capacity — the historic ailments of Indian cooperatives.

Overall, the Ministry has performed strongly as policy architect and enabler, less so yet as builder of self-sustaining member-driven enterprise. Institutionalising professional management, independent audit and member education, as the 2025 Policy envisages, can convert this promising experiment into a durable third growth pillar for Viksit Bharat.

Sources

  1. 1Rajasthan Chief Minister Shri Bhajanlal Sharma launches 'Bharat Taxi' service in Jaipur, PIBJaipur Sarathi/customer numbers, lower fares, daily trip volume
  2. 2Bharat Taxi Launched as India's First Cooperative-Owned Digital Mobility Platform, PIBfirst cooperative-led platform; Multi-State Cooperative Societies Act, 2002
  3. 3Union Home and Cooperation Minister Shri Amit Shah formally launched India's first cooperative-based taxi service 'Bharat Taxi', PIB"Sarathi hi malik" ownership model, share certificates, ₹5 lakh insurance
  4. 4Year Ender 2025 — Ministry of Cooperation: "Sahkar se Samriddhi", PIBministry's creation, 114 initiatives, Model Bye-Laws, e-PACS and PMKSK data
  5. 5Union Home Minister and Minister of Cooperation Shri Amit Shah unveils National Cooperative Policy — 2025, PIBpolicy pillars, objectives, 50 crore member target

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