Nitin Gadkari advocates Maharashtra to create new law for cooperative sector to keep pace with 'evolving economic conditions'

Nitin Gadkari urges Maharashtra to create new cooperative sector law for economic growth, emphasizing rural development and reform.

Union Minister Nitin Gadkari on Monday (May 12, 2025) suggested the Maharashtra government to formulate a new law for the cooperative sector in the State considering the evolving economic conditions.

The cooperative sector would play a key role in improving the financial condition of people from rural areas, he said, and urged the Maharashtra State Cooperative Bank, the apex cooperative bank in the State, to study the socio-economic impact of the cooperative movement in the State.

Addressing a public function in Mumbai, Mr. Gadkari said, “It is my request to Maharashtra Chief Minister and Deputy Chief Minister to come up with a revised act for the cooperative sector. We must find a golden mean between the Cooperative Act and the Companies Act and formulate a new legislation accordingly.”

“There is a need to amend the laws governing cooperative establishments to align with evolving economic conditions,” he said.

The Road Transport and Highways Minister said the Maharashtra State Cooperative Bank should conduct a comprehensive study on the socio-economic impact of the cooperative movement in the State.

"The socio-economic impact of the cooperative movement in Maharashtra should be studied across the State at the tehsil and district levels. It should measure employment, per capita income and growth rate," he said.

Highlighting the economic imbalance between sectors, Mr. Gadkari said while the manufacturing sector contributes 22 to 24%, the services sector 52 to 54% to the GDP generating maximum Goods and Services Tax (GST). The agriculture and rural development sector contribute only 12% despite employing 60% of the population, he said.