Cooperative Movement in India can be traced to the Cooperative Credit Societies Act (1904). India’s first Prime Minister, Jawaharlal Nehru had strong faith in the cooperative movement. Hence, cooperatives became an integral part of Five Year Plans in India. In 1958, National Development council recommended setting up of Cooperative Marketing Societies. The major sectors where cooperatives dominate are in dairy, agriculture, banking and rural credit, etc. Article 43, Part IV (DPSP) of the constitution, mentions about promotion of cooperatives mainly in rural areas.

The importance of the cooperative sector.

• it provides agricultural credits where the State and private sectors have not been able to do so. 
• it helps to overcome the constraints of agricultural development. 
• it provides empowerment to the members. 
• it can be an answer to the domination by the MNC’s which work solely on the profit motive. If the problems of cooperatives are overcome, they can strengthen the financial sector and lessen our reliance on MNC’s.