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Synopsis The present research-oriented study deals with the Cooperative Movement in India, which took its origin in the beginning of the 20th century to solve the rural indebtedness. During colonial rule the socio-economic fabric of rural India was completely shattered. Besides farming the rural industries became almost extinct as the Britishers had introduced their own manufactured products. Towards the end of the 19th century the British made a strong plea for introduction of cooperative credit societies in India. When India got her independence on 15 August 1947, the rural cooperatives were considered as an instrument of economic growth resulting in poverty alleviation of the peasants and the farm labour in the rural areas. Over the successive five year plans the cooperative movement, specially the rural credit cooperatives have covered the entire rural activities in the villages and helped in agricultural productivity by meeting the rural credit requirements or the credit needs of the small and marginal farmers. This research publication will be useful in understanding the role of rural credit in agricultural productivity.