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Govt aims to boost cooperatives’ share in GDP 3-fold: Shah

Says Narendra Modi revived Gandhi's 'forgotten' mantra of rural development after becoming PM in 2014

He highlighted major rural reforms, natural farming growth, and new cooperative models aimed at strengthening India’s grassroots economy.Amit Shah announced an ambitious plan to triple the cooperative sector’s GDP share while expanding cooperatives across all panchayats. (Express photo by Sankhadeep Banerjee)

UNION HOME and Cooperation Minister Amit Shah said on Friday that as part of a “definite strategy”, the government is planning to increase the contribution of the cooperative sector by three-fold in comparison to 2023.

Shah was addressing an Earth Summit organised by National Bank for Agriculture and Rural Development (NABARD) and the Internet and Mobile Association of India (IAMAI) in Gandhinagar. IAMAI is a not-for-profit industry body with more than 700 members, including Indian and multinational corporations and start-ups.

Shah said in Hindi, “On completing 75 years of Independence, 130 crore people of the country had collectively resolved that when 100 years of Independence would be completed, our country will be number one in every sector in the world. And if we want to fulfill this resolve, it cannot be done merely by figures…The idea of a thoroughly developed India includes welfare of every citizen. And this cannot be done without cooperative, agriculture, animal husbandry and rural development.”

“As part of a definite strategy, we have decided that in a few years we will form one cooperative in every (village) panchayat. We will make more than 50 crore active members of cooperatives and increase the cooperative’s share in the Gross Domestic Product (GDP) three-fold in comparison to 2023.”

Shah also highlighted the importance of rural development, agriculture and cooperation in the development of the country and how under the leadership of Prime Minister Narendra Modi, the present government has revived it after coming to power in 2014.

He said, “In 1930, Gandhiji had said that if India wants to progress, the idea of India’s development cannot be formed while keeping aside villages. Unfortunately, after Independence, within a few years, we forgot this mantra of the Mahatma. Three important elements of rural development – agriculture, animal husbandry and cooperation – were ignored. From 2014, a transformative era started in the country. Narendra Modi became the Prime Minister and he revived that mantra of Gandhiji while putting it before all.”

In this context, Shah said that three ministries of rural development, agriculture and cooperative decide the future of 80 per cent population while framing the direction of its development.

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“The combined budget of these three ministries in 2014 was Rs 1.02 lakh crore. Only Rs 1.02 lakh crore…In 2025-26, the combined budget of the three ministries was increased from Rs 1.02 lakh crore to Rs 3.15 lakh crore. Almost three fold increase…If we add animal husbandry then the increase is 3.75 times,” he said.

Shah also said, “This means that after Narendra Modi became the Prime Minister, after formation of the BJP government, rural development, animal husbandry, agriculture and cooperative have been considered as important organ of the country’s economy.”

In his speech, Shah also spoke on some experiments being done by his ministry in the cooperative sector.

He said that in Banaskantha and Panchamahal disticts of Gujarat they have introduced a concept of having “cooperation among cooperatives”, which means that the bank accounts of cooperatives are opened in cooperative institutions only. Shah said that this has got surprising results as because of it the cooperative sector will be able to finance its five time expansion without going outside for money. This experiment is going to be implemented across the country after making some corrections, he said.

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He also spoke about the concept of a circular economy in the dairy sector, such as use of gobar to produce gas, use of dead animals’ skin and bones etc.

Shah added that work is ongoing in the field of circular economy in sugarcane as well.

The Union minister highlighted the efforts being made in natural farming in the country.

According to Shah, as per a latest figure, a total of 49 lakh farmers have adopted natural farming in India so far.
He said that to establish reliability of an organic product, the government has been setting up a chain of laboratories that will test the farmers’ land and its organic product to put it before the global organic market.

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“In the coming days, food without poison, organic food is going to be very beneficial to our people. And it is our target that by 2030 India’s share in the global organic market is more than 20%; and India’s farmers will get 40% share by 2035,” Shah said.

Shah also spoke on some initiatives in the cooperative sector such as cooperative taxi service and cooperative insurance.

Talking about cooperative taxi service which has been on a trial base in Delhi, Shah said that so far 51000 drivers have registered for the service in Delhi. He expressed confidence that it will be the largest such taxi service company in the country.

On cooperative insurance service, Shah said, “We are also bringing a cooperative insurance service – whether it’s health insurance, life insurance, agriculture, or accident insurance – all types of insurance on a cooperative basis. And in every village, three young people will work as ambassadors for cooperative insurance. In a way, we want to strengthen the cooperative sector across the country.”

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Later in the day, Shah attended the concluding ceremony of Sansad Khel Mahotsav at Veer Savarkar Sports Complex in Ahmedabad.

In his speech at the event, Shah said that a total of 1.57 lakh people from seven assembly constituencies falling under Gandhinagar Lok Sabha constituency participated in the event.

Referring to the recent decision under which Ahmedabad has been confirmed to host 2030 Commonwealth Games, Shah also told the people of Ahmedabad to aim at being ready to host the Olympics in 2036.

He also said that under the leadership of Prime Minister Narendra Modi, the Union government is giving a lot of importance to sports and increased its budget from Rs 800 crore in 2014 to Rs 4000 crore in 2025.

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Earlier on Friday, Shah had also inaugurated Swadeshotsav 2025 at the grounds of Gujarat University. The event has been organised between December 5 and 9 during which sessions will be held on various subjects like environment, swadeshi, cyber security awareness, intellectual property rights, natural farming, organic farming etc..

Shah also held a meeting with Chief Secretary M K Das and senior officials of the irrigation department with reference to the lake interlinking project of Gandhinagar Lok Sabha constituency. Under the project, lakes in the Gandhinagar Lok Sabha constituency are to be interlinked in a phased manner. Shah also inaugurated various developmental projects of Gandhinagar Municipal Corporation like garden, yoga studio, railway over bridge, sports complex etc. Apart from that, he also inaugurated the newly built primary health centre and boys’ and girls’ schools in Adraj (Moti) village of Dehgam taluka of Gandhinagar.

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