Cooperatives in India face diverse problems. A renewed political and economic focus on cooperatives is needed make it a truly people-based movement at the grassroots level. Examine. – INSIGHTSIAS

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Topic: Development processes and the development industry —the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.

3. Cooperatives in India face diverse problems. A renewed political and economic focus on cooperatives is needed make it a truly people-based movement at the grassroots level. Examine. (250 words)

Difficulty level: Easy

Reference: The Hindu

Why the question:

The cooperative movement in India has regained focus after the Union Government recently created a Ministry of Cooperation to provide a separate administrative legal and policy framework for streamlining the cooperatives.

Key Demand of the question:

To examine the challenges faced by Cooperatives in India and suggest measures.

Directive word: 

Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.

Structure of the answer:

Introduction: 

Give a brief about history cooperatives in India.

Body:

First mention various success stories and benefits associated with cooperatives. Amul, IFFCO etc.

Next, mention different problems associated with cooperatives – institutional financial lacunae, policy hurdles, administrative issues, sources of credit, capital equipment, and state-of-the-art technology for producers.

Next, suggest steps for overcoming the above.

Conclusion:

Conclude by writing a way forward

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