India's Cooperative Movement
The cooperative movement in India, initially focused on agriculture, now spans various sectors. These member-owned enterprises are pivotal in grassroots development and community empowerment.
Overview and Expansion
- India has 844,000 registered cooperatives across 30 sectors.
- The National Cooperative Policy 2025 aims to expand cooperatives by 30%, achieving one cooperative in every village.
- The goal is to activate 500 million citizens currently inactive in cooperatives.
Policy Features and Objectives
- The policy encourages states to reformulate cooperative policies and digitize processes.
- Timely elections are emphasized to counter inefficiencies and political interference.
- Primary Agricultural Credit Societies (PACs) are to be strengthened as implementing agencies for government schemes.
Marketing and Export Potential
- The policy seeks to unlock cooperatives' potential in exporting high-quality products like dairy, spices, and handicrafts.
- Focus on improving branding, logistics, and international standards awareness.
- National Cooperative Exports Ltd. was established in 2023 to provide technical assistance and economies of scale.
Recent Developments
- Computerization of PACS and creation of model bylaws for multipurpose use.
- Launch of the world's largest decentralized grain-storage program.
- Establishment of Tribhuvan Sahkari University for skill development and innovation.
Challenges and Concerns
Long-term success hinges on addressing foundational challenges:
- 40% of PACs are defunct with limited digital tool adoption.
- Weak institutional capacity and financing constraints hinder growth.
- Technological and human capital deficiencies prevent scaling and innovation.
- Regulatory uncertainty, especially for cooperative banks under dual regulation.
- Potential regulatory overlaps as cooperatives expand into insurance and other sectors.
