Launching the UN International Year of Co-operatives 2025, Prime Minister Narendra Modi on Monday said that there is a requirement of a collaborative financial model to ensure easy and transparent financing for co-operatives.
This is to pool financial resources to support small and financially weak co-operatives as India works towards making the country a developed nation by 2047.
This point is important as co-operatives play a huge role in the sugar, fertilizers, fisheries and milk production industries and cover almost 98% of rural India.
Underlining the need to decide the direction of the global co-operative movement in the 21st century, Modi said, "We will have to think of a collaborative financial model to ensure easy and transparent financing for cooperatives.” He emphasized the importance of pooling financial resources to support small and financially weak co-operatives. “Such shared financial platforms can play an essential role in funding large projects and providing loans to co-operatives.”
Co-operatives can enhance the supply chain by participating in the procurement, production and distribution processes, he said.
Reiterating the need to create global financial institutions which can finance co-operatives across the world, Modi said that the International Co-operative Alliance (ICA) plays a huge role, and it is imperative to move beyond this in the future. The current situation in the world presents a big opportunity for the co-operative movement.
He pointed out the need to make co-operatives the flag-bearers of integrity and mutual respect in the world. For this, he added, there is need to innovate policies and strategize. Underscoring the importance of making co-operatives climate resilient, they should be connected to the circular economy and promote start-ups in co-operatives.
There are about 200,000 housing co-operative societies in India and ₹1.2 trillion is now deposited in co-operative banks across the country. "Our government has implemented several reforms to enhance the co-operative banking system, including bringing them under the purview of the Reserve Bank of India (RBI) and increasing deposit insurance coverage to ₹5 lakh per depositor," the PM stated. “The expansion of greater competitiveness and transparency have helped position Indian co-operative banks as more secure and efficient financial institutions.”
According to Modi, co-operatives can help the countries of the Global South to achieve the kind of growth they need. Therefore, he said, “Today it is necessary to innovate new ways for international collaboration of co-operatives and today’s Global conference could be of great assistance.”
The UN International Year of Cooperatives 2025, launched at the ICA global co-operative conference in New Delhi focuses on “Co-operatives build a better world." It underscores the transformative role co-operatives play in promoting social inclusion, economic empowerment, and sustainable development. The UN SDGs recognize co-operatives as crucial drivers of sustainable development, particularly in reducing inequality, promoting decent work, and alleviating poverty. Next year will be a global initiative aimed at showcasing the power of co-operative enterprises in addressing the world’s most pressing challenges.
Modi also launched a commemorative postal stamp, symbolizing India’s commitment to the co-operative movement. The stamp showcases a lotus, symbolizing peace, strength, resilience, and growth, reflecting the co-operative values of sustainability and community development. The five petals of the lotus represent the five elements of nature (Panchatatva), highlighting cooperatives' commitment to environmental, social, and economic sustainability. The design also incorporates sectors like agriculture, dairy, fisheries, consumer co-operatives, and housing, with a drone symbolizing the role of modern technology in agriculture.
