GROWTH OF COOPERATIVES IN INDIA

Abstract

The cooperative movement in India started somewhere in 1904 when the first Cooperative Credit Societies Act was formed. Formerly, the objective of the cooperatives was to uphold the interest of the poor farmers from private money-lenders. Since independence, the cooperative movement has broadened to the extended corners of the country. Cooperation has now touched upon almost all sections of the Indian economy. After the Second World War, the Urban Cooperative Bank is a major modernization in the cooperative sector. As on 31st March, 1996, the Urban Cooperative Bank sector encompasses about 1500 banks with 4500 branches. The total deposits of these banks are Rs.24000 crores which constitutes about 4.5% of total deposits of the entire banking system. This paper looks into this incredible growth of cooperatives in India. It attempts to justify the hypothesis that “With growth of the cooperatives, the country advances.” The first section of the paper defines the concepts of cooperatives. The second section enumerates a long list of advantages of cooperatives and discusses how these advantages help in upliftment of economically and socially backward population. The third section of the paper describes some famous cooperative movements in India. The fourth section narrates some issues faced by cooperative societies. The final section of the paper presents a case study of Co-operative society which uplifted the tribal population in Valsad.