Cooperatives Sector to Create 55 Million Jobs and 10% GDP Contribution by 2030 Data from the Indian Cooperative Movement report published in 2018 highlights that direct employment generated by cooperatives grew from 1.2 million in 2007-08 to 5.8 million in 2016-17, marking a compound annual growth rate (CAGR) of 18.9 per cent.
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As India aspires to achieve a USD 5 trillion economy by 2030, cooperatives are emerging as a critical engine for job creation, economic inclusivity, and wealth distribution. According to a report by Primus Partners, cooperatives have the potential to add millions of jobs and significantly contribute between 3 per cent to 5 per cent of the country's GDP by 2030. Their proven track record in creating both direct and self-employment opportunities positions them as a transformative force in India's economic journey.
Cooperatives have historically demonstrated their capacity to generate substantial employment. Data from the Indian Cooperative Movement report published in 2018 highlights that direct employment generated by cooperatives grew impressively from 1.2 million in 2007-08 to 5.8 million in 2016-17, marking a compound annual growth rate (CAGR) of 18.9 per cent. This growth underscores the potential of cooperatives to address unemployment challenges and promote equitable wealth distribution.
Looking ahead, cooperatives are poised to generate up to 55 million direct jobs by 2030, provided there is a confluence of supportive government policies and favorable economic conditions. Even if the growth rate halves, an estimated 36 million jobs could still be created, showcasing the resilience and scalability of the cooperative model.
Expanding self-employment opportunities
Cooperatives are also pivotal in fostering self-employment. The 2009 Indian Cooperative Movement report revealed that cooperatives created 15.47 million self-employment opportunities in 2006-07. By 2018, this figure had surged to around 30 million, accounting for approximately 10.91 per cent of self-employment opportunities nationwide.
With sustained growth rates of 5-6 per cent annually and proactive government initiatives, cooperatives could create as many as 56 million self-employment opportunities by 2030. Even under conservative growth scenarios, the sector could generate 36 million opportunities, contributing significantly to India's informal economy and entrepreneurial ecosystem.
A boost to GDP contribution
The economic influence of cooperatives extends beyond job creation. Projections suggest that cooperatives could contribute 3-4 per cent to India's GDP by 2030. When considering both direct and self-employment impacts, their contribution could surpass 10 per cent, underlining their role in bolstering the national economy. Even by focusing solely on direct employment, cooperatives' nominal GDP contribution is expected to exceed 5 per cent, showcasing their importance as a driver of economic productivity and social equity.
To fully harness the potential of cooperatives, India must prioritize supportive policies, enhance access to financial resources, and foster capacity-building initiatives within the sector. With the right interventions, cooperatives can serve as a cornerstone of India's strategy to achieve inclusive economic growth and sustainable development.
