India’s rural models are shaping development diplomacy, Pg8

Key Highlights:

• The National Rural Livelihood Mission (NRLM), launched in 2011, aims to reduce poverty by promoting self-employment, financial inclusion, and skill development in rural areas.
• As of mid-2025, the NRLM operates in 742 districts, reaching over 100 million households and mobilizing more than 9 million Self-Help Groups (SHGs).
• The program has facilitated ₹51,368 crore in capitalisation support and ₹12 lakh crore in bank linkages, primarily benefiting women.
• The Union Budget 2026-27 allocated ₹19,200 crore to the NRLM, reinforcing its status as a flagship program for rural poverty alleviation.
• Several African governments, including those from Ethiopia, Tanzania, Malawi, Kenya, and Rwanda, have studied the NRLM model for adaptation in their countries.

Detailed Insights:

• The NRLM has enabled over 20 million women in Self-Help Groups (SHGs) to earn over ₹1,00,000 annually, with women banking correspondents present in over 60% of local governments.
• The program's success lies in its integrated approach, combining social mobilization, institutional architecture, and access to credit and skills, making it a unique model for global development.
• African policymakers are drawn to the NRLM due to its focus on women's empowerment, cost-effectiveness, alignment with informal economies, and its institution-building approach that strengthens local governance.
• India's development cooperation is evolving from capacity-building and financial assistance to exporting social-sector institutions like the NRLM, fostering sustained linkages between bureaucracies and community organizations.
• To further promote the NRLM model, India could establish a Rural Livelihoods Knowledge Exchange Platform to facilitate knowledge sharing between state livelihood missions, training institutions, and African governments.

Key Concepts Involved:

• Self-Help Groups (SHGs): Community-based groups where members pool savings and resources to provide financial assistance to each other.
• Financial Inclusion: Providing access to financial services, such as banking, credit, and insurance, to individuals and businesses, especially in underserved communities.
• Development Diplomacy: Using development initiatives and expertise as a tool to strengthen international relations and promote cooperation.