Self-Help Groups (SHGs) have become a key driver of socio-economic change for women in rural India. These small, informal groups, typically comprising 10 to 20 women, work collectively to improve their financial independence, social status, and decision-making power within their communities.
SHGs operate on a simple model of saving and credit. Members contribute small amounts of money to a common pool, which is then used to provide loans for business ventures or emergencies. This system enables women, who often lack access to formal financial institutions, to start small businesses such as dairy farming, tailoring, or handicrafts production.
In addition to financial benefits, SHGs foster social empowerment. Women involved in SHGs gain confidence, learn leadership skills, and often become involved in local governance. In states like Kerala and Tamil Nadu, SHGs have been particularly successful, with women participating in community development initiatives, health programs, and education campaigns.
Government schemes like the National Rural Livelihoods Mission (NRLM) have supported the growth of SHGs, providing them with training, resources, and market access. As a result, SHGs have helped millions of rural women break free from poverty and improve their families’ quality of life.
Despite these successes, challenges remain. Limited access to credit, inadequate infrastructure, and market linkages continue to hinder the full potential of SHGs. Addressing these issues will be key to ensuring that SHGs continue to empower women and contribute to sustainable development in rural India.
