The emergence of Self Help Groups(SHGs) in contemporary times points to the slow but steady withdrawal of the state from developmental activities. Examine the role of the SHGs in developmental activities and the measures taken by the Government of India to promote the SHGs.
The emergence of Self Help Groups(SHGs) in contemporary times points to the slow but steady withdrawal of the state from developmental activities. Examine the role of the SHGs in developmental activities and the measures taken by the Government of India to promote the SHGs.
Subject: Social Justice
India's remarkable journey in women's empowerment and rural development has been significantly shaped by the Self Help Group (SHG) movement, which has evolved from small savings groups to powerful agents of socio-economic transformation, with over 10.05 crore women from rural households being members of 90.86 lakh SHGs as of June 2024.
Role of SHGs in Developmental Activities
Economic Empowerment:
- SHGs facilitate financial inclusion through collective savings and internal lending mechanisms.
- They promote entrepreneurship and income generation through skill development and market linkages.
- Create pathways for formal credit access through the SHG-Bank Linkage Programme.
Social Development:
- Act as platforms for women's empowerment and leadership development at grassroots level.
- Address social issues like gender discrimination, domestic violence, and health awareness.
- Enable collective action for community development and social change.
Institutional Building:
- Foster democratic decision-making and participatory governance.
- Serve as implementation channels for various government schemes like NRLM.
- Build social capital through networking and knowledge sharing.
Government Measures to Promote SHGs
Financial Support:
- Allocation of Rs 3 lakh crore in Gender Budget 2024-25, marking a 37.33% increase from previous year.
- Implementation of Namo Drone Didi scheme with Rs 500 crore allocation.
- Introduction of 'Grameen Credit Score' framework to improve rural credit access.
Institutional Framework:
- Deendayal Antyodaya Yojana-NRLM for sustainable livelihood promotion.
- SHG-Bank Linkage Programme with Rs 19,005 crore allocation for 2025-26.
- Integration with Skill India and Digital India initiatives.
Capacity Building:
- Training programs for financial literacy and enterprise development.
- Digital empowerment through technology adoption and e-commerce platforms.
- Leadership development and management training.
Rather than indicating state withdrawal, the emergence of SHGs represents a shift towards participatory development where the government acts as an enabler through initiatives like NRLM and Mission Shakti, creating an ecosystem for community-led growth and empowerment.
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