Government Initiatives and Opportunities for Self-Help Groups (SHGs) in India: Empowering Women and Alleviating Poverty

Self-help groups (SHGs) have become a crucial tool for poverty alleviation and women's empowerment in India. The government has taken several initiatives to support and promote the growth of SHGs in the country. The National Rural Livelihoods Mission (NRLM) is one of the flagship programs that aims to reduce poverty by mobilizing rural women into SHGs and building community institutions of the poor. It has played a significant role in the spread of SHGs since 2011.

In August 2021, under the Atmanirbhar Bharat program, the government announced financial support of Rs 1,625 crore to over 0.4 million SHGs. This funding was specifically aimed at providing assistance to SHGs during the challenging times of the COVID-19 pandemic[2]. Additionally, the government has been focusing on promoting financial inclusion for SHGs, enabling them to access formal credit and banking services. This has been instrumental in supporting the growth and sustainability of SHGs.

Market linkages and skill development opportunities have been provided to SHGs to help them access new markets and increase their earning potential. The government has recognized the power of SHGs in women's empowerment and has implemented various programs and initiatives to support women's participation in SHGs. These initiatives aim to enhance the socio-economic status of women and promote their active involvement in decision-making processes.

However, SHGs in India still face challenges that need to be addressed. Access to credit remains a significant challenge for many SHGs due to the lack of collateral and credit history. Market access is another hurdle as SHGs often struggle to reach markets for their products, limiting their earning potential. The digital divide is also a concern, as many SHGs lack access to digital technology, hindering their participation in e-commerce and other digital platforms.

Looking forward to 2024, SHGs have opportunities that can be capitalized on. The government's continued support and recognition of SHGs as a tool for poverty alleviation and women's empowerment present a positive outlook. The growing demand for sustainable and locally sourced products provides avenues for SHGs to access new markets and increase their earning potential. The push for digital transformation by the government can also help SHGs overcome the digital divide and participate in e-commerce platforms.

In conclusion, self-help groups in India have made significant progress in poverty alleviation and women's empowerment. The government has played a crucial role in supporting the growth of SHGs through various initiatives. However, challenges such as access to credit, market access, and the digital divide need to be addressed. With the right support and opportunities, SHGs can continue to contribute to India's economic development and make a positive difference in the lives of women.

References:

[1] Key to BJP plans in the run-up to 2024 LS polls: Self-Help Groups, in maps and numbers https://indianexpress.com/article/political-pulse/bjp-plans-2024-lok-sabha-polls-self-help-groups-8898020/

[2] Self Help Groups - Drishti IAS https://www.drishtiias.com/daily-updates/daily-news-analysis/self-help-groups-4

[3] This MoU will be a landmark in empowering women SHGs and rural poor youth - PIB https://pib.gov.in/PressReleasePage.aspx?PRID=1907742

[4] (PDF) Self-Help Groups and COVID-19: Effects on and Challenges for the National Rural Livelihoods Mission in India - ResearchGate https://www.researchgate.net/publication/358667235_Self-Help_Groups_and_COVID-19_Effects_on_and_Challenges_for_the_National_Rural_Livelihoods_Mission_in_India

[5] The power of the collective empowers women: Evidence from self-help groups in India - PMC - NCBI https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8350313/

[6] The Economic Potential Of Women Self-help Groups - Forbes India https://www.forbesindia.com/article/special/the-economic-potential-of-women-selfhelp-groups/61329/1

[7] Self Help Groups - PIB https://pib.gov.in/newsite/PrintRelease.aspx?relid=191635

[8] Women self-help groups: Funding alone does not work; the government needs to listen in https://www.downtoearth.org.in/blog/governance/women-self-help-groups-funding-alone-does-not-work-the-government-needs-to-listen-in-78995

[9] Self Help Groups - Drishti IAS https://www.drishtiias.com/daily-updates/daily-news-analysis/self-help-groups-4

[10] Self-help groups as platforms for development: The role of social capital - PMC - NCBI https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8350316/

[11] Social networks, mobility, and political participation: The potential for women's self-help groups to improve access and use of public entitlement schemes in India | IFPRI https://www.ifpri.org/publication/social-networks-mobility-and-political-participation-potential-womens-self-help-groups

[12] In India, Women's Self-Help Groups combat the COVID-19 (Coronavirus) pandemic https://www.worldbank.org/en/news/feature/2020/04/11/women-self-help-groups-combat-covid19-coronavirus-pandemic-india