12-Dec-2024
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Cooperative Sector in India: A Pillar of Inclusive Growth
The cooperative sector is emerging as a major growth driver for the economy and employment generation in India. According to studies by Primus Partners and other research, it may provide about 5.5 crore direct and equivalent self-employment opportunities in 2030. This will contribute to India becoming a USD 5 trillion economy which is the vision.
Evolution Timeline and Pan-India Coverage
The cooperative movement in India came into existence early in the 20th century when British colonial rule exploited farmers and other rural communities. Today, India has the world's largest cooperative network, with over 8.5 lakh societies and more than 29 crore members covering 98% of the rural areas.
Working in agriculture, dairy, fisheries, housing, and banking, cooperatives have helped change work and wages and access to economic activity. Between 2007-08 and 2016-17, direct employment rose from 1.2 million to 5.8 million directly employed, thereby demonstrating growing relevance.
Economic Impact and Potential Employment
The cooperative sector is an important platform for creating self-reliance and entrepreneurship. It has substantially increased self-employment through career opportunities, from 15.47 million in 2006-07 to 30 million in 2018, with a projected figure of 56 million by 2030.
It is going to further add to the GDP of India, expecting cooperatives to be up to 10% of GDP by 2030. It will be an impressive demonstration of how this sector itself accelerates equitable economic growth and employment security, particularly for the rural regions.
Modernisation and Policy Improvements
The Ministry of Cooperation, formed in 2021, represents the will of the government to take the sector to the next level. Improvement in governance, digital innovation, and the cooperative structure are some of the ministry's aims. Initiatives under the cooperative structure, such as the Yuva Sahkar Scheme, have been designed to nurture young entrepreneurs.
Research from the International Journal of Research in Social Sciences and Information Studies emphasizes the need for structural reforms. Recommendations include advancing digital infrastructure, establishing a National Cooperative Tribunal for grievance resolution, and improving market access through digital platforms. These reforms aim to align cooperatives with modern financial mechanisms such as Priority Sector Lending.
Addressing Challenges
Despite its potential, the sector is still characterized by significant obstacles, such as limited financial access, regulatory hurdles, and less than consistent implementation of reforms. Legal issues, such as the partial invalidation of the 97th Constitutional Amendment by the Supreme Court, have further complicated efforts to ensure cooperative autonomy.
To address these issues, measures such as a National Cooperative Mission, increased transparency, and public-private partnerships have been proposed. These steps could enhance fair treatment, labour law compliance, and overall sector efficiency.
Promoting Inclusivity and Empowerment
The cooperative sector has been highly instrumental in the empowerment of women and work by creating equitable opportunities and fostering women's empowerment. Addressing minimum wages and the overall compliance of health and safety standards helped to create an environment that truly promotes inclusiveness and socio-economic upliftment.
Moreover, coops support family responsibility, enabling members to balance professional and personal obligations toward the collective goal of security. This sector continues to push for equitable roles and pay structures through cooperation with trade unions and advocating for collective agreements.
A Future Vision
Becoming a strong bridge between rural and urban economies, the cooperative sector has the potential to redefine India's economic landscape. Therefore, up to 2030, it should bring sustainable employment opportunities, and ensure equitable growth and distribution of wealth among communities.
With focused policy support, modernisation, and strategic reforms, cooperatives are sure to remain the cornerstones of India's development with economic stability and inclusive growth. This should be part of shaping a better, more prosperous, and equitable future for the nation.