Stressing that funding is a key issue to make cooperatives self-sustained, a report by a consultancy firm said that India’s cooperative sector has the potential to generate up to 5.5 crore direct jobs and 5.6 crore self-employment opportunities by 2030.
Releasing the report titled “Cooperatives Could Generate 56 Million Self-Employment Opportunities by 2030,” management consultancy firm Primus Partners on Thursday suggested that a National Mission for Cooperative Development should be launched to integrate several strategies into a cohesive framework and should be supported by a special purpose vehicle (SPV) to drive its implementation.
Among the strategies, the report recommended onboarding cooperatives onto platforms like the Open Network for Digital Commerce (ONDC) to streamline logistics and expand market reach, establishment of Centres of Excellence (CoEs) in partnership with institutions like Krishi Vigyan Kendras (KVKs) to offer training in digital tools, entrepreneurship, and modern agricultural practices.
Primus said that priority sector lending should be expanded and partnerships be made with international agencies to provide concessional loans and grants. It also suggested that visibility and reputation of cooperatives be strengthened by developing comprehensive branding strategies and defining long-term goals to raise their profile.
However, its recommendation of ‘One District One Cooperative’ model is at variance with the government policy of one primary cooperative in every alternate village.
“To ensure autonomy, self-reliance, and democratic management of India’s vast network of approximately 8.5 lakh cooperative societies with a member base of 29 crore, it is essential to address their funding needs and enable them to become self-sustainable,” the report said.
According to Primus Partners, as India strides towards the ambitious goal of becoming a $5 trillion economy by 2030, the cooperative sector stands as a beacon of hope and potential.
India’s cooperative network, the largest in the world, represents nearly 30 per cent of the 30 lakh cooperative societies globally. It said that India is poised to leverage the sector’s immense capabilities to drive economic growth, social equity, and inclusive development.
Quoting the ‘Indian Cooperative Movement’ report, it said that cooperatives were responsible for 13.3 per cent of total employment in the economy as of 2016-17, demonstrating a remarkable increase from 12 lakh jobs in 2007-08 to 58 lakh in 2016-17, a staggering 18.9 per cent annual growth.
“Looking ahead, cooperatives have the potential to create up to 5.5 crore direct jobs and 5.6 crore self-employment opportunities by 2030,” it said. By maintaining a 5-6 per cent growth rate, the sector could generate 5.6 crore self-employment opportunities by 2030 from 3 crore in 2018, the report said.