A recent paper published by NABARD’s Department of Economic Analysis and Research, authored by Sitikantha Pattanaik (Chief Economist) and Shrujan Rajendra Rajdeep (Economist), highlights the crucial role of cooperative institutions in promoting rural manufacturing as a pathway to rural prosperity.
The authors emphasize that cooperative institutions are best positioned to implement government schemes such as PM Vishwakarma, suggesting the creation of cooperative societies of traditional artisans (Vishwakarmas) at the cluster or block level with integrated support systems.
They note that the government’s medium-term plan for the cooperative sector aims to establish 2 lakh new multipurpose PACS, dairy, and fishery societies, covering all panchayats.
These are envisioned to function as common service centres (CSCs) delivering over 300 e-services, acting as PM Kisan Samridhi Kendras, and contributing to building the world’s largest grain storage capacity in the cooperative sector.
The paper further suggests that under the proposed National Manufacturing Mission, cooperatives should be mandated a key role in strengthening rural manufacturing.
Leveraging NABARD’s expertise and providing rural credit cooperatives with adequate refinancing and supervision support will be critical. Such measures, the authors argue, could significantly boost rural MSMEs and contribute to achieving the nation’s goal of USD 7.5 trillion manufacturing GVA by 2047.
