“When women thrive, economies thrive.”
This adage holds profound relevance as India has just released National Cooperative Policy 2025. The National Cooperation Policy aims to make cooperatives key drivers for Viksit Bharat 2047 through Sahkar-se-Samriddhi.
Cooperatives are collective enterprises owned and democratically controlled by their members. The International Cooperative Alliance (ICA), defines cooperatives as “autonomous associations of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.” They have long been engines of rural and semi-urban economic growth. But their true potential remains untapped when half the population faces systemic barriers to full participation. As the world celebrates the International Year of Cooperatives, India stands at a critical juncture where empowering women through collective enterprises could unlock unprecedented economic growth. With over 8.44 lakh cooperatives and 30+ crore members, the sector represents a formidable force. But for women, the formal leadership remains shockingly low at 2.5% of all cooperatives, with more than half being dormant. This paradox becomes glaring when contrasted with success stories like SEWA (3.2 million members), Amul (3.6 million women dairy farmers), and Lijjat Papad (45,000 home-based entrepreneurs), proving that women- led cooperatives thrive.
The National Cooperative Policy 2025 is structured around six transformative pillars designed to revolutionize the sector. Legal reforms, digitalization, and improved governance aim to strengthen foundations, while business ecosystems and export clusters seek to enhance vibrancy. The policy’s focus on technology integration (Cooperative Stack) and professional management prepares cooperatives for future challenges. Most crucially, its inclusivity mission explicitly targets women’s participation through Self Help Groups and new sectors like clean energy, healthcare, and warehousing. So, let’s also analyse what necessitates this policy!
Now, if we take cues from Africa, this leadership gap is particularly evident in regions like Rwanda, where women make up 60-70% of agricultural cooperative members but hold only 15% of leadership positions.However, there is a notable exception in Asia. India’s Self-Employed Women’s Association (SEWA), a groundbreaking initiative that has empowered over 3 million women through worker cooperatives, demonstrates the potential for gender-inclusive models with female leadership. SEWA Cooperative provides a holistic support system, offering financial services, healthcare, and childcare to informal women workers.
The economic rationale for prioritizing women’s cooperatives is irrefutable. Studies show that agricultural cooperatives with majority-female membership achieve higher yields , while every ₹1 invested in women’s collectives generates ₹3.50 in local economic activity. This multiplier effect stems from women’s financial behavior, they reinvest 90% of earnings into family welfare, creating long-term human capital dividends. Microfinance data further underscores their reliability, with 98% repayment rates among women versus 92% for men. In Ethiopia, women participating in dairy cooperatives reported income increases of 25-40%, significantly improving household livelihoods. The lesson for India here is to promote dairy cooperatives especially when India has a pride of Amul attached to its identity. Beyond economic gains, cooperatives foster empowerment where women in savings cooperatives gained greater financial independence and decision-making authority within their households.
Several cooperatives stand out for their gender-inclusive approaches. In Uganda, the Nakaseke Women’s Cooperative has enhanced women’s land ownership through collective farming and advocacy. Similarly, the Philippines’ CARD Bank, a women-focused microfinance cooperative with 1.5 million members, has reduced poverty by 30% in its target communities, showcasing the transformative power of gender-sensitive models.
Challenges and Policy recommendations
Despite their significant presence, women in cooperatives face systemic challenges. Access to finance remains a critical hurdle, with women often lacking collateral to secure loans. For instance, in Kenya, only 30% of women in Savings and Credit Cooperative Organizations (SACCOs) access credit compared to 50% of men. Cultural biases further exacerbate these disparities, particularly in societies, where traditional gender roles often exclude women from decision-making processes. Additionally, time constraints due to unpaid care work limit women’s ability to participate in cooperative meetings or training programs, further marginalizing their influence.
Many cooperatives inadvertently exclude women through membership requirements embedded in their bylaws. A common example occurs in agricultural cooperatives, where land ownership or control of productive assets serves as a membership prerequisite. Since women in many regions face systemic barriers to property rights and capital accumulation, these requirements effectively disqualify them from joining. This exclusion has far-reaching consequences, as it denies women access to critical cooperative benefits like credit facilities, skills training, production inputs, technological resources, and market connections. Some cooperatives compound the problem by restricting membership to one person per household – a policy that typically favors male family members. These practices reveal how cooperative structures can perpetuate gender inequalities, despite their democratic principles. The situation highlights a fundamental contradiction: while cooperatives are member-governed institutions, their rules sometimes reflect and reinforce broader societal biases against women’s economic participation. This systemic exclusion undermines the cooperative movement’s potential as a vehicle for inclusive development and women’s empowerment.
To address existing disparities, targeted interventions are essential. Policy mandating 30% to 50% female representation in leadership roles can significantly increase women’s participation in cooperative governance. Additionally, gender- sensitization or gender-sensitive training programs, such as those implemented by the Food and Agriculture Organisation (FAO) in Latin America, equip women with leadership and technical skills, fostering long-term empowerment.
In India, the government has recently launched several schemes and initiatives to support women in cooperatives. One is, Sahakarita Samriddhi Yojana (SSY) to provide financial assistance and capacity-building support to women-led cooperatives. It provides Subsidized loans for women’s cooperatives in sectors like dairy, handloom, and agriculture. Priority funding for cooperatives with 51% or more women members for financial inclusion. Pradhan Mantri Mahila Saksham Cooperative Scheme (PM-MSCS) was recently launched under NCP 2025 to enhance women’s participation in cooperatives offering Digital literacy programs to help women manage cooperatives digitally with Tax benefits for cooperatives with majority women members.
As Dr. Renana Jhabvala of SEWA asserts, “Women’s cooperatives are not just poverty alleviation tools, they are the next wave of India’s economic revolution.” The Policy 2025 provides the blueprint; now, India must convert rhetoric into resources. By anchoring cooperatives in development economics, India can harness the GDP boost women’s collectives offer, making 2025 the year where cooperatives move from margins to mainstream.
References
Masabo, C. M. V., MSc. (2015). Women`s Empowerment through Cooperatives- A Study from Women`s Perspectives (Master Thesis No. 167855; p. 74). https://research-api.cbs.dk/ws/portalfiles/portal/58443803/caroline_masabo.pdf
Nippierd, A.-B. (n.d.). Gender issues in cooperatives. https://microfinancelessons.com/files/media_subdomain/resources/gender_issues_coops.pdf
Ijip.In. (2016). The International Journal of Indian Psychology, Volume 3, Issue 4, No. 59. Lulu& RED’SHINE Publication. Inc. https://ijip.in/wp-content/uploads/ArticlesPDF/article_8541772c07b98b1525470d21c6d82b52.pdf