'Sahkar Se Samriddhi' envisions prosperity through cooperatives. Critically assess the achievements and limitations of India's cooperative sector reforms since 2021.

Q. 'Sahkar Se Samriddhi' envisions prosperity through cooperatives. Critically assess the achievements and limitations of India's cooperative sector reforms since 2021. (15 marks, 250-350 words)

The carving out of a separate Ministry of Cooperation on 6 July 2021 gave institutional shape to the vision of Sahkar Se Samriddhi, with over 152 initiatives in five years [1]. The reforms have measurably modernised the sector, yet their federal and governance foundations remain contested.

Achievements: institutional and digital deepening - Policy architecture: the National Cooperation Policy-2025 replaced the 2002 policy, setting a roadmap for professionalisation and diversification of cooperatives [2]. - Digitisation of PACS: the Centrally Sponsored Scheme (approved 29 June 2022) was expanded from 63,000 PACS/₹2,516 crore to 79,630 PACS with ₹2,925.39 crore, with ERP software in 14 languages and completion targeted by 31 March 2027 [1]. - Functional diversification: PACS now operate as Common Service Centres, PM Kisan Samriddhi Kendras and Jan Aushadhi Kendras, converting single-purpose credit bodies into rural service hubs [3]. - New national bodies: NCEL (exports), NCOL (organics) and BBSSL (seeds), plus Tribhuvan Sahkari University, link village societies to national value chains [1].

Limitations: federal, structural and governance gaps - Constitutional friction: 'cooperation' is a State subject (Entry 32, List II); in Union of India v. Rajendra N. Shah (2021) the Supreme Court held Part IXB inoperative for state cooperative societies for want of State ratification, confining the Centre's role largely to persuasion and funding [4]. - Uneven execution: delivery runs through State Cooperative Banks and DCCBs, so progress varies sharply across states; hardware installation does not automatically mean functional, audited societies. - Movement remains regionally concentrated in a few western and southern states, leaving eastern and north-eastern India thinly covered. - Autonomy concerns: elite capture, politicised boards and consolidation under large national umbrella bodies sit uneasily with Article 43B's mandate of voluntary, autonomous, democratically controlled cooperatives [5].

The reforms have credibly shifted cooperatives from a neglected residual sector to a recognised third pillar of the rural economy. Sustaining this requires cooperative federalism in practice — model State laws adopted by consensus, timely independent audits, and professional management — so that Sahkar Se Samriddhi deepens grassroots democracy alongside prosperity.

(~330 words)

Sources: 1. Year Ender 2025 – Ministry of Cooperation: "Sahkar se Samriddhi", PIB — Ministry's establishment, 152 initiatives, PACS computerisation outlay/targets, NCEL/NCOL/BBSSL 2. National Cooperation Policy 2025, Ministry of Cooperation (PIB document) — new national policy framework 3. Ministry of Cooperation, Five-Year Initiatives Booklet (as on 30.06.2025) — PACS as CSCs, PM Kisan Samriddhi Kendras and Jan Aushadhi Kendras 4. Union of India v. Rajendra N. Shah, Supreme Court judgment, 20 July 2021 — Part IXB inoperative for State cooperative societies 5. Statement of Objects and Reasons, Constitution (97th Amendment) Act, Ministry of Law and Justice — Article 43B on voluntary formation and autonomous functioning