India Emerges as a Global Leader in the Cooperative Movement

The cooperative sector is known not only for enriching economically aspiring individuals but also for integrating them into the mainstream of the economy.

The cooperative movement holds immense potential as a transformative tool for uplifting those who lack capital or have only a paltry sum of savings. India is steadfastly working toward this vision.

Although our nation has had an elaborate history of cooperatives, the way cooperation became a medium of economic development before independence was revitalized with even greater energy and strength only during the tenure of Prime Minister Shri Narendra Modi. In 2021, under the leadership of Prime Minister Shri Narendra Modi, the government made a landmark decision to open all previously closed doors for the cooperative sector by establishing a dedicated ministry of cooperation at the national level. The steps taken to strengthen the sector have outfitted Bharat in just three years with the readiness to emerge as a 'Vishwamitra' in the cooperative sector as well.

As a result, India's cooperative movement today is poised for a historic milestone. The country is set to host the International Cooperative Alliance (ICA) General Assembly and Global Cooperative Conference in Delhi from November 25 to 30, 2024. For the first time in the ICA’s 130-year history, India will serve as its organizer. This event is particularly significant as it will also mark the advent of the United Nations International Year of Cooperatives 2025. Bharat hosting the ICA General Assembly and Global Conference is a testament to the global recognition of our nation’s leadership position in the cooperative movement.

Since the formation of the BJP government under the leadership of Prime Minister Shri Narendra Modi, consistent efforts have been made to uplift the backward, extremely backward, underprivileged, and marginalized sections of society. The government firmly believes that such a transformation is not impossible without strengthening the cooperative movement. It is noteworthy that this significant event coincides with India’s major strides toward revitalizing its cooperative sector. Comprehensive administrative, policy, and legal reforms have been undertaken to rejuvenate struggling cooperative institutions, streamline their operations, and foster transparency and competition among cooperative societies. Prime Minister Modi’s mantra, 'Sahakar se Samriddhi' (Prosperity through Cooperation), aims to make the nation's cooperative institutions self-reliant and robust. By expanding the cooperative network, a new economic model is being shaped—one that aligns with the Prime Minister’s vision to build a $5 trillion Indian economy. This model is not only poised to drive India's growth but also serve as an inspirational framework for development in other countries around the world.

India's tradition of cooperation dates back to ancient times, with roots embedded in its cultural and economic practices. References in Kautilya's Arthashastra highlight collective efforts, such as the construction of temples and dams for public benefit in villages. Similarly, the financial systems of South India provide early glimpses of cooperative frameworks. Many economists trained in western thought systems initiated the discourse at the inception of the 21st century that the idea of cooperation had become obsolete in the modern era. However, it is my firm belief that the economic models created by countries with a population of 30 million, 50 million, or even 100 million are unlikely to be suitable for a country like India, with a population of 1.4 billion. In order to build a prosperous nation, it is not only essential to rise in all indicators of economic growth but also to ensure the prosperity of 1.4 billion people, provide employment to all individuals, and guarantee them the right to live with dignity. And this is only possible through cooperation. There are many examples in our history to substantiate this belief.

The Ahmedabad District Cooperative Bank, for instance, has achieved a remarkable profit of ₹100 crore over the past century. Not only has it maintained zero Non-Performing Assets (NPA), but it also boasts deposits exceeding ₹6,500 crore. Amul is also a successful example of the cooperative movement. Presently, 35 lakh families are availing employment and a dignified life through it, and the women in these families are playing a key role and leading from the front. As a result, today Amul’s annual turnover has reached Rs. 80,000 crore. Interestingly, none of these women made an initial investment of more than Rs. 100.

Under the visionary leadership of Prime Minister Shri Narendra Modi, the government has introduced over 60 initiatives to revitalize and strengthen the cooperative movement in India. Years of neglect and administrative irregularities had left most Primary Agricultural Credit Societies (PACS) financially weak and inactive. To address this, the government has expanded the scope of PACS and made them economically viable. With the adoption of new by-laws, PACS can now engage in over 30 diverse activities, including dairy, fisheries, grain storage, and running Jan Aushadhi Kendras. The establishment of three new national-level multi-state cooperative societies has further enhanced the cooperative ecosystem. The National Cooperative Exports Limited has opened global market opportunities for farmers, while the National Cooperative Organics Limited provides platforms for organic certification and market access to organic products. Bharatiya Beej Sahakari Samiti Limited has ensured the availability of high-quality seeds to farmers. Additionally, government initiatives like financial assistance, tax relief, and the ethanol blending program have rejuvenated cooperative sugar mills. To strengthen the cooperative banking system, a policy emphasis has been placed on channeling cooperative institutions' funds into cooperative banks. Efforts to enhance transparency, such as the creation of a National Cooperative Database, have streamlined operations and extended the cooperative movement to underdeveloped regions. Furthermore, a comprehensive and forward-looking National Cooperative Policy is being developed to provide a robust framework for the sector's growth.

The ICA General Assembly and Global Conference 2024 will serve as a global platform to showcase India’s remarkable strides in advancing financial inclusion, eradicating poverty, ensuring gender equality, and contributing to the achievement of the United Nations Sustainable Development Goals (SDGs) through its dynamic cooperative movement. A central agenda of the conference is to create a resilient ecosystem that enables cooperatives to address emerging challenges and seize new opportunities. It is imperative for cooperatives worldwide to unite and contribute toward building a better, more sustainable future for all.

As we prepare to host this historic event, I extend an open invitation to cooperative leaders, policymakers, and advocates of human development from across the globe. Together, let us embrace the spirit of learning, sharing, and collaborating to strengthen the global cooperative movement. India’s commitment to “Sahakar Se Samriddhi” is not just a vision but a solemn pledge to build a brighter future grounded in collective prosperity, sustainability, and shared progress.

By: Shri Amit Shah, Union Minister for Home and Cooperation