EXPLORING THE CONTRIBUTION OF SHORT-TERM AND LONG-TERM COOPERATIVE CREDIT IN INDIA'S ECONOMIC DEVELOPMENT

Abstract

The role of cooperative credit in India’s economic development, especially through short-term and long-term credit mechanisms, is pivotal in supporting the growth and stability of the economy. Cooperative credit institutions, with their broad reach in rural areas, contribute significantly to agricultural development, rural enterprise, and poverty alleviation. Short-term cooperative credit, primarily designed to address immediate financial needs, facilitates the timely availability of funds for farmers and small businesses, ensuring sustained productivity and livelihood support. In contrast, long-term cooperative credit plays a crucial role in promoting infrastructural and industrial growth by financing large-scale projects that have a lasting impact on the economy. This paper explores the evolution and contribution of both short-term and long-term cooperative credit systems in India, particularly their role in economic empowerment, infrastructure development, and social welfare. It assesses the effectiveness of these credit mechanisms in enhancing the economic conditions of rural communities and evaluates their contribution to national economic growth. Through an analysis of cooperative credit structures, government policies, and the socio-economic impact of credit schemes, the paper provides a comprehensive understanding of their role in India's economic transformation. The findings suggest that while both short-term and long-term cooperative credit systems are indispensable for India's growth, their implementation requires stronger regulatory frameworks and better access to ensure equitable development across diverse sectors.