Modi calls for global financial model to support cooperative sector

New Delhi, Nov 25 (PTI) Prime Minister Narendra Modi on Monday called for the creation of a new collaborative financial model to support cooperatives globally, emphasizing their potential to drive economic growth, particularly in developing nations.

Speaking at an ICA Global Cooperative Conference, Modi launched the UN International Year of Cooperation 2025 and proposed setting up international financial institutions dedicated to cooperative ventures.

Modi also launched a commemorative postal stamp, symbolising India’s commitment to the cooperative movement.

“India believes that cooperatives can give new energy to global cooperation,” Modi said, particularly highlighting their potential to drive growth in Global South nations.

The Prime Minister emphasized the importance of making cooperatives climate resilient and connecting them to the circular economy, while also advocating for the promotion of cooperative-focused startups.

Modi pointed to India’s actions during the COVID-19 pandemic as an example of cooperative principles in action, noting how the country shared vaccines and essential medicines with other nations, particularly in the Global South, despite the potential economic advantages of doing otherwise.

“While economic logic might have suggested taking advantage of the situation, our sense of humanity led us to choose the path of service,” Modi said.

Citing Mahatma Gandhi, Modi stressed that the success of cooperatives depends more on the moral development of their members than their numbers. He called for cooperatives to become “flag bearers of integrity and mutual respect” in the world.

The Prime Minister also highlighted India’s position as the world’s fastest-growing economy, pledging that the benefits of this growth would reach the poorest segments of society through inclusive policies.

“For the world, cooperation is a model, but for India, cooperation is the basis of culture, it is a way of life,” Modi said.

India’s cooperative sector, which encompasses 8 lakh organizations and represents one in four global cooperatives. The sector covers 98 per cent of rural India, engaging 30 crore people, he said.

Outlining the key initiatives taken to strengthen cooperatives in India, the Prime Minister said a separate ministry was established, cooperatives were made multi-purpose units and centres for providing local solutions, besides enabling them with IT ecosystem.

The government is also working towards making India a developed country by bringing together governance with cooperativism, he said. The government has implemented several reforms to enhance the cooperative banking system, including bringing them under the purview of the Reserve Bank of India (RBI) and increasing deposit insurance coverage to Rs 5 lakh per depositor.

In the last decade, there has been a vast expansion of urban cooperative banking and cooperative housing after the government brought reforms. There are 2 lakh housing cooperative societies in the country and Rs 12 lakh crore deposits in cooperative banks, he said.

The government is establishing multipurpose cooperative societies in 2 lakh villages where there is no society at present, while already established 9,000 Farmer Producer Organisations.

Emphasizing women’s role, Modi noted women now represent over 60 per cent of cooperative participation, with government policies mandating women directors in multi-state cooperative societies.

The government is leveraging digital platforms like Open Network for Digital Commerce (ONDC) to expand cooperative market reach and enhance farmers’ economic opportunities Cooperation Minister Amit Shah, Prime Minister of Bhutan Dasho Tshering Tobgay, Deputy Prime Minister of Fiji Manoa Kamikamica and around 3,000 delegates from more than 100 countries were present.

The ICA Global Cooperative Conference and the ICA General Assembly are being organised in India for the first time in the 130-year-long history of the International Cooperative Alliance (ICA), the premier body for the global cooperative movement.

The global conference, hosted by the Indian Farmers Fertiliser Cooperative Limited (IFFCO), in collaboration with the ICA, the Government of India and Indian cooperatives AMUL and KRIBHCO, is being held from November 25 to November 30.