Cooperatives and Their Evolution in India - Current Affairs

Cooperatives and Their Evolution in India

What are the key milestones in the evolution of cooperatives in India?

The evolution of cooperatives in India has several key milestones:

• 1904: The First Cooperative Credit Societies Act is enacted.
• 1912: Cooperative Societies Act amended to expand scope beyond credit
• 1919: Cooperation became a provincial subject through the Montague-Chelmsford Reforms
• 1951: The First Five-Year Plan highlighted the promotion of cooperatives for community development.
• 2002: Multi-State Co-operative Societies Act passed
• 2011: The 97th Constitutional Amendment established the right to form cooperatives as a fundamental right.
• 2021: Separate Union Ministry of Cooperation created

The cooperative movement in India has grown from primarily credit societies to now spanning sectors like agriculture, dairy, housing, and fisheries. There are over 800,000 cooperatives in India today.

What are some major challenges faced by cooperatives in India?

Major challenges faced by cooperatives in India include:

• Governance issues like lack of transparency and democratic decision-making
• Limited access to financial resources and credit
• Infrastructural constraints, especially in rural areas
• Lack of technical and managerial capacities
• Social and cultural factors limiting participation
• Regulatory hurdles and policy inconsistencies across states
• Political interference in some cases
• Limited awareness about cooperative models among potential members

Addressing these challenges through policy reforms, capacity building, and awareness programs is crucial for strengthening the cooperative movement in India.