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Modi Government Establishes Ministry of Cooperation to Boost Cooperative Movement

By NDP newsroom

Ahead of a major cabinet reshuffle, the Modi government announced the creation of a new Ministry of Cooperation, signaling its commitment to strengthening the cooperative movement in India. This ministry aims to streamline processes for cooperatives, enable multi-state cooperative development, and foster a grassroots, community-driven economic model.

Key Objectives:

  1. Ease of Doing Business for Cooperatives:

    • The ministry will provide an administrative, legal, and policy framework to enhance the functioning of cooperatives.

  2. Fulfilling Budget Promises:

    • In her Union Budget address, Finance Minister Nirmala Sitharaman proposed a dedicated administrative structure for cooperatives, which has now materialized.

  3. Vision of ‘Sahkar se Samriddhi’ (Prosperity through Cooperatives):

    • The ministry is expected to empower cooperatives to contribute significantly to India's goal of becoming self-reliant (Atmanirbhar Bharat).

Support and Reactions:

  • Sahakar Bharati's Role:

    • The NGO, whose founder member Satish Kashinath Marathe is on the RBI board, had advocated for the creation of a separate ministry.
    • Marathe expressed gratitude to Prime Minister Narendra Modi for the move.

  • Government and Party Leaders:

    • BJP leaders and ministers, including Railway Minister Piyush Goyal, hailed the creation of the ministry as a "visionary step."

Second New Ministry in Modi 2.0:

The Ministry of Cooperation is the second ministry created under Modi’s second term, following the formation of the Jal Shakti Ministry in 2019. Unlike the Ministry of Cooperation, Jal Shakti was formed by merging two existing ministries.

Implications for Governance:

The establishment of the ministry aligns with Modi's governance mantra of "minimum government, maximum governance" while addressing specific sectoral needs. This move raises the number of central government ministries to 41, marking a strategic expansion focused on sectoral efficiency and community engagement.

The minister heading this new department is expected to be announced soon, coinciding with the anticipated cabinet reshuffle. This development underscores the government’s emphasis on fostering a cooperative-based economic model to drive grassroots development and national prosperity.

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