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6 Jul 2026ECONOMY3 questions

Sahkar Se Samriddhi: Cooperative Movement as India's Rural Economic Backbone

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Article summary

The Government of India's 'Sahkar Se Samriddhi' (Prosperity through Cooperation) vision anchors its cooperative policy under the Ministry of Cooperation, established in July 2021 as a dedicated ministry for the first time in independent India. The initiative encompasses digitisation of over 63,000 Primary Agricultural Credit Societies (PACS), formation of new cooperatives in unserved panchayats, and amendments to the Multi-State Cooperative Societies (MSCS) Act, 2002. Cooperatives in India span credit, dairy, fisheries, housing, and marketing sectors, with over 8 lakh registered cooperatives serving approximately 29 crore members. The policy push is rooted in Article 43-B of the Constitution (inserted by the 97th Constitutional Amendment, 2011) and the Seventh Schedule's Entry 32 of the State List, creating a complex federal dynamic. For UPSC aspirants, this topic intersects federalism, rural development, financial inclusion, and constitutional law — making it a perennial multi-paper candidate.

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recallTests whether you read the article and retained key facts.
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applicationTests whether you can apply the concept to a new scenario.
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analysisTests whether you can reason across multiple related facts.
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Sample questions — answers revealed after test

ECONOMYRecallEasy

Q1. With reference to the constitutional provisions governing cooperative societies in India, which one of the following statements is correct?

AArticle 43-B, directing the State to promote voluntary formation and democratic control of cooperatives, was inserted by the 97th Constitutional Amendment, 2011.
BThe power to legislate on cooperative societies for all types of cooperatives — including state-level ones — is vested exclusively in Parliament under Entry 44 of the Union List.
CPart IX-B of the Constitution, which provides a detailed framework for cooperative societies, was struck down in its entirety by the Supreme Court in 2021.
DArticle 43-B is a Fundamental Right under Part III of the Constitution, enforceable in courts against state inaction on cooperative promotion.
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ECONOMYApplicationMedium

Q2. A state government wishes to regulate the election process and audit mechanisms of a cooperative society that operates branches only within its territory. The Parliament had earlier enacted a law under Part IX-B of the Constitution mandating uniform election norms for all cooperative societies. Following the Supreme Court's ruling in Union of India v. Rajendra N. Shah (2021), which of the following correctly describes the legal position?

AThe state government can enact its own cooperative election law because Part IX-B, having been struck down for state cooperatives, cannot override the state's legislative competence under Entry 32 of the State List.
BParliament's law under Part IX-B continues to bind all cooperative societies including state-level ones, since the Supreme Court only read down certain procedural provisions, not the substantive framework.
CNABARD, as the apex supervisory body for cooperative credit institutions, has the authority to override both state law and Part IX-B to impose uniform election norms on the cooperative.
DThe cooperative society in question will automatically be classified as a Multi-State Cooperative Society and governed by Entry 44 of the Union List, since it is subject to a central law.
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ECONOMYAnalysisHard

Q3. Consider the following statements regarding India's cooperative sector and the reforms introduced through the Multi-State Cooperative Societies (Amendment) Act, 2023 and related policies: 1. Primary Agricultural Credit Societies (PACS) form the apex tier of the short-term cooperative credit structure and are directly supervised by the Reserve Bank of India. 2. The Multi-State Cooperative Societies (Amendment) Act, 2023 introduced a Cooperative Election Authority and provision for concurrent audit among its governance reforms. 3. The government's scheme for computerisation of PACS, approved with a ₹2,516 crore outlay, is structured as a Centrally Sponsored Scheme aimed at converting PACS into multi-service centres. 4. Parliament's legislative competence to enact the Multi-State Cooperative Societies Act, 2002 derives from Entry 44 of the Union List in the Seventh Schedule. How many of the above statements are correct?

AOnly one
BOnly two
COnly three
DAll four
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