By pooling resources, providing microfinance opportunities and promoting entrepreneurship, these groups have significantly contributed to the reduction of poverty and demonstrated a successful model of grassroots development. Down To Earth delves into seven exemplary initiatives to illustrate the formidable influence of these village-level alliances
In a typical Indian village today, one is certain to find groups of women talking about finance. They can be seen sitting under a tree, in an abandoned school building, or in the front yard of a village resident's dilapidated home, holding thick notebooks. "I am a member of an SHG”— self-help group-most women residents of villages proudly introduce themselves. In a male-dominated society, where women play significant but never-recognised roles, this self-identification as members of SHG is a badge of honour and an assertion of a new identity of power.
India has some 0.65 million villages, as per Census 2011. In comparison, there are 9 million SHGS with nearly 100 million women members, shows Deendayal Antyodaya Yojna-National Rural Livelihoods Mission (DAY-NRLM) data, released in December 2023. This comes to, on average, 14 SHGS per village, with every eighth Indian woman being an SHG member.
An SHG is usually a community group of 10-12 women from similar socioeconomic background. They form these alliances to pool their financial resources for taking up joint economic activities, or to lend money at a reasonable interest rate to members for starting small businesses. At the core of this group is the collectivisation of resources to enable financial stability and self-employment for women. A cursory evaluation of DAY-NRLM data shows that each SHG helps eight to 10 women start businesses.
This story is from the March 01, 2024 edition of Down To Earth.
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This story is from the March 01, 2024 edition of Down To Earth.
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