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Cooperatives Health: 47.05% of 8.48 Lakh Societies Defunct or in Loss; National Cooperation Policy 2025 Aims to Connect 50 Cr People

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Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
28 Mar 2026
~2 min
Source: The Hindu
Key Data:8.48 lakh total cooperatives3.49 lakh in profit47.05% defunct/in loss/liquidation2.11 lakh in loss1.41 lakh non-functional47,688 under liquidation
Bodies:Ministry of CooperationLok SabhaNABARDRBISamyukt Kisan Morcha
Practice MCQs from today's news ▸
What This Article Covers

1.Central data reveals 47.05% of India's 8.48 lakh cooperatives are defunct, in loss, or under liquidation, with only 3.49 lakh in profit.

2.The crisis is most acute in dairy, housing, credit & thrift, labour, and women's welfare cooperatives, with states like Nagaland (72.7% defunct) and Uttar Pradesh (41.8% defunct) being worst affected.

3.The government's response is the National Cooperation Policy 2025, aiming to connect 50 crore people to the sector, though critics allege it centralizes power and serves corporate interests.

The Big Picture
Prelims · HighMains · High

Nearly half of India's 8.48 lakh cooperative societies are financially distressed, highlighting a crisis in a sector critical for rural livelihoods and financial inclusion. The National Cooperation Policy 2025 aims to revitalize the sector by connecting 50 crore people, with a focus on Dalits, Adivasis, and women. This is a vital topic for governance, rural economy, and social justice sections of the UPSC syllabus.

Exam Lens

Quick Exam Facts From News

Total Cooperatives8.48 lakh
Societies in Profit3.49 lakh
Societies Defunct/In Loss/Liquidation47.05%
Societies Under Liquidation47,688
Worst State (Defunct %)Nagaland (72.7%)
Policy MentionedNational Cooperation Policy, 2025

1-Minute Revision

  • ›Total Cooperatives: 8.48 lakh
  • ›Societies in Profit: 3.49 lakh
  • ›Target this Data: 47.05% of 8.48 lakh cooperatives are defunct/in loss/under liquidation.
  • ›Target this Nodal Body: Union Ministry of Cooperation (and Minister Amit Shah provided data).
  • ›Target this Policy: National Cooperation Policy, 2025 with its target to connect 50 crore people.

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which Ministry provided the Lok Sabha data on the financial status of India's cooperative societies, as mentioned in the article?

Q2Statement-basedMedium

Consider the following statements regarding the status of cooperative societies in India as per the article:

1. Only 3.49 lakh out of 8.48 lakh cooperatives are in profit.

2. Nagaland has the lowest percentage of defunct cooperative societies among the states mentioned.

3. The National Cooperation Policy, 2025 aims to connect 50 crore people with the cooperative sector.

Which of the statements given above is/are correct?

Q3Data-centricEasy

According to the data presented to Lok Sabha, what percentage of India's total cooperative societies are defunct, under liquidation, or in loss?

Q4Application/ImpactMedium

What is a primary criticism leveled by farm unions like Samyukt Kisan Morcha against the National Cooperation Policy, 2025, as mentioned in the article?

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