1.Cooperatives Boost MSME Growth (Cooperative MSMEs)
What & Where
Cooperatives = member-owned enterprises serving economic, social, cultural needs; enshrined as a constitutional right since 2011
Types: agriculture, credit, dairy, housing, fisheries; flagships include PACS, AMUL, IFFCO, Lijjat
Spread: 8.14 lakh societies, 29 crore members across rural-urban India
Quick Facts for MCQs
Legal & Policy
- Legislation: 2002 MSCS Act; 2011 97th Amendment; 2022 amendment adds Election Authority, Rehabilitation Fund, merger window
- Ministry: Cooperation Ministry 2021 spearheads Sahakar se Samriddhi vision
- Policy: Draft National Cooperative Policy 2023 seeks uniform state laws, tax reliefs
Economic Angle
- Pooling: Shared machinery and raw material cut MSME production costs
- Marketing: Collective branding & certification widen domestic and export markets
- Inclusion: Women-led SEWA, Lijjat advance rural jobs, circular economy
Challenges
- Finance: Cooperative banks liquidity crunch; commercial banks perceive high risk
- Regulation: Overlapping laws and GST norms delay registration, compliance
- Digital: Low e-accounting, e-commerce adoption restricts scale benefits
Tech & Schemes
- Training: Cluster centres upgrade carpentry, pottery, tailoring via digital tools
- Platforms: ONDC, GeM, Amazon Karigar envisaged for CoopMade product sales
- Credit: Linking PACS to MUDRA, CGTMSE, NABARD for fintech-enabled lending
Key Data Points
| Feature | Data-Point |
|---|---|
| Total cooperatives | ≈ 8.14 lakh |
| Membership base | 29 crore persons |
| Direct employment share | 13.3 % of India’s jobs |
| Short-term agri credit | 15 % routed through cooperatives |
| National sugar output share | 30 % |
| Fertiliser distribution share | 35 % |
| Cooperatives in banking | 20 % of total cooperatives |
| PM Vishwakarma loan rate | 5–7 % interest |
| Constitutional backing | 97th Amendment 2011, Part IX-B |
| Union Cooperation Ministry | Created 2021 |
Related UPSC Prelims PYQs
सूक्ष्म, लघु और मध्यम उद्योगों (MSMEs) के बारे में निम्नलिखित कथनों पर विचार कीजिए:
In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?










