Modi Advocates for a New Global Financial Model to Support Cooperatives and Economic Growth

Prime Minister Narendra Modi has advocated for a new global financial model to support cooperatives, highlighting their role in economic growth, especially in developing countries. At the ICA Global Cooperative Conference, he launched the UN International Year of Cooperation 2025 and suggested creating international financial bodies for cooperative projects. A commemorative postal stamp was also unveiled, underscoring India's dedication to the cooperative movement.

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India's cooperative sector is vast, with 8 lakh organisations representing a quarter of global cooperatives. It covers 98% of rural India and involves 30 crore people. Modi emphasised that cooperation is not just a model for India but a cultural foundation and way of life. He highlighted India's actions during the COVID-19 pandemic as an example of cooperative principles, where India shared vaccines and medicines with other nations, prioritising service over economic gain.

Cooperatives and Economic Growth

Modi stressed the need for cooperatives to be climate resilient and linked to the circular economy. He also advocated for promoting startups focused on cooperatives. Citing Mahatma Gandhi, he mentioned that the success of cooperatives relies more on the moral development of members than their numbers. He urged cooperatives to uphold integrity and mutual respect globally.

India's government has taken significant steps to bolster cooperatives, including establishing a dedicated ministry and transforming them into multipurpose units offering local solutions. The IT ecosystem has been leveraged to empower these cooperatives further. The government aims to make India a developed nation by integrating governance with cooperativism.

Reforms in Cooperative Banking

The government has reformed the cooperative banking system by bringing it under the Reserve Bank of India's oversight and increasing deposit insurance coverage to Rs 5 lakh per depositor. Over the past decade, urban cooperative banking and housing have expanded significantly due to these reforms. Currently, there are 2 lakh housing cooperative societies in India with Rs 12 lakh crore deposits in cooperative banks.

Efforts are underway to establish multipurpose cooperative societies in 2 lakh villages lacking such entities while already having set up 9,000 Farmer Producer Organisations. Women's participation in cooperatives has increased significantly, with over 60% representation now. Policies require women directors in multi-state cooperative societies, reflecting this shift.

Global Cooperative Conference

The ICA Global Cooperative Conference and General Assembly are being held in India for the first time in ICA's 130-year history. Hosted by IFFCO alongside ICA, the Indian government, AMUL, and KRIBHCO, this event runs from November 25 to November 30. Cooperation Minister Amit Shah, Bhutan's Prime Minister Dasho Tshering Tobgay, Fiji's Deputy Prime Minister Manoa Kamikamica, and around 3,000 delegates from over 100 countries are attending.

The government is using digital platforms like ONDC to broaden market access for cooperatives and boost farmers' economic prospects. Modi highlighted India's position as the world's fastest-growing economy and promised that growth benefits would reach society's poorest through inclusive policies.