Answer: Cooperatives are voluntary associations that are jointly owned and democratically controlled enterprises, addressing shared economic, social, and cultural needs. The 97th Constitutional Amendment Act incorporated the term ‘cooperatives’ into Article 19(1)(c), granting the right to form cooperatives, and introduced Article 43(B) in the DPSP (Part IV) to support the promotion of these societies. Recently, the creation of seprate ministry signifies the importance our present goverment associate with the potential of cooperation in achieving inclusive growth through “Sabka Sath Sabka Vikas”.

Cooperatives role in promoting economic growth and sustainable development:

• Employment Generation: Cooperatives create jobs in underserved areas, benefiting members, families, and marginalized communities. They promote inclusive growth, empower women, youth, and disadvantaged groups, reducing inequalities in the workforce.
  • For example, Shri Mahila Griha Udyog (Lijjat)
• Promotes sustainable agricultural practices: Cooperatives enable small-scale organic farmers to access markets that may otherwise be challenging to reach individually. By pooling their resources and products, cooperatives can negotiate better prices, secure bulk orders, and establish stronger market linkages. This enhances the economic viability of organic farming, improves farmers’ income, and promotes sustainable agricultural practices.
• Poverty Reduction: Cooperatives can play a vital role in reducing poverty and exclusion by identifying economic opportunities, empowering the disadvantaged, providing security through collective risk-sharing, and facilitating access to essential assets.
  • For example, IFFCO plays a significant role in reducing poverty and improving the livelihoods of farmers across the country.
• Empower women and achieve gender equality: Cooperatives can contribute in gender equality by expanding women’s opportunities to participate in local economies and societies and voice in decision-making.
  • For example, the SEWA (Self-Employed Women’s Association) Cooperative focuses on promoting gender equality and empowering women.

• Provide quality education: Cooperatives play a significant role in facilitating access to education by increasing household incomes, which translates into the ability to meet educational costs. Where local governments have been unable to provide school infrastructure, cooperatives can fill the gap to build and support local schools.
  • For example, Sahakari Shikshan Sanstha is a cooperative organization in Maharashtra managing educational institutions that focuses on quality education, skill development, and vocational training for diverse student backgrounds.
• Ensure healthy lives: Cooperatives ensure healthy lives by creating the infrastructure for delivering healthcare services; financing healthcare and providing home-based healthcare services to people living with HIV/AIDS, among others.
  • For example, Yeshasvini Rural Cooperative Health Scheme by Govt. Of karnataka.
• Good governance and effective institutions: Collectively members own their co-operative, and through democratic arrangements they participate in its governance. Individually they have a right to information, a voice, and representation.
  • For example, The National Cooperative Development Corporation (NCDC) exemplifies good governance by providing financial and technical support to cooperatives, ensuring transparency and accountability in cooperative development.

Cooperatives have the potential to drive rural transformation and contribute to India’s growth story with sufficient financial and technical support. The government should take necessary measures to foster a growth ecosystem for cooperatives to tackle rural challenges effectively.