Mains Marathon

Approach :

• Briefly introduce Self-Help Groups (SHGs) and their core objective.
• Discuss the role of SHGs in women-led development and social transformation.
• Highlight some challenges faced by SHGs.
• Conclude with a suitable way forward.

Introduction :

Self Help Groups (SHGs) are informal collectives of persons from similar socio-economic backgrounds who come together to save and access credit, build capacities, and promote entrepreneurship. While their primary aim is economic upliftment, SHGs have evolved into instruments of grassroots mobilization, leading to substantial social transformation in rural India.

Body :

Economic Empowerment through Women-led Development

• Access to Credit and Livelihood: Through microfinance, SHGs provide low-interest loans for income-generating activities like tailoring, poultry, dairy, and food processing.
  • According to NABARD's 2022 report, over 12 million SHGs exist in India, encompassing more than 90 million women.
• Entrepreneurship Promotion: Women-owned businesses like Lijjat Papad and Amul’s milk cooperatives show how SHG models empower women entrepreneurs.
• Women-led Development: In Kerala’s Kudumbashree Mission, SHGs have been integrated into local governance and planning, fostering women’s leadership in poverty alleviation, solid waste management, and enterprise development.
• Government Support for SHGs:
  • Support through DAY-NRLM: The Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (2011) offers capacity building, credit linkage, and skill development for SHG members.
  • Start-Up Village Entrepreneurship Programme (SVEP): Supports SHG women in setting up non-farm enterprises.
  • Mahila Kisan Sashaktikaran Pariyojana (MKSP): Focuses on women farmers in SHGs.
  • e-SHG Portal and Udyam Sakhi: Facilitate digital monitoring and entrepreneurship support.

Agents of Social Transformation

• Gender and Social Equity: SHGs promote mobility, literacy, and awareness against gender-based discrimination.
• Social Mobilization: In Andhra Pradesh and Tamil Nadu, SHGs have been instrumental in fighting domestic violence, alcoholism, and child marriage.
• Public Health Initiatives: During the COVID-19 pandemic, SHGs produced masks, ran awareness drives, and supported rural healthcare outreach.
  • In Bihar’s “JEEViKA” project, SHG women have contributed to COVID-19 awareness and mask production.

Challenges Faced by SHGs

• Over-indebtedness: In some states, multiple borrowings and weak repayment mechanisms lead to debt cycles.
• Capacity Constraints: Lack of financial literacy and entrepreneurial skills hampers productivity.
• Elite Capture and Exclusion: Vulnerable groups like Dalit and Adivasi women often remain on the margins.
• Limited Market Linkage: SHG products frequently suffer from poor branding and limited access to formal markets.

Conclusion :

As said by Pandit Jawahar Lal Nehru, “When women move forward, the family moves, the village moves and the nation moves”.With sustained policy support and grassroots participation, SHGs can truly become the fulcrum of a silent social revolution and an engine of inclusive, resilient, and women-led development in India.