• UGI USER
  • Mar 11, 2024
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INDIA’s SHGs EMERGING WORLD’s BIGGEST MICROFIN PROJECT

Relevance: GS 1 – Role of women and women’s organization

Why in the News?

  • International Women’s Day (March 8) marks a celebration of the remarkable success story of women leaders within India’s influential Self-Help Groups (SHGs).
  • Their journey epitomizes hope and triumph, showcasing the power of determination and resilience.
  • Through their efforts, they have demonstrated the transformative potential of grassroots movements led by women.

Formation and Purpose of SHGs

  • SHGs typically consist of 10-12 women sharing similar socio-economic backgrounds.
  • These groups unite to pool their financial resources for joint economic endeavors.
  • Another purpose is to provide loans to members at reasonable interest rates to kickstart small businesses.

Impact and Empowerment

  • The success of SHGs represents a genuine tale of hope and triumph, showcasing the unstoppable power of women.
  • Their influence is pivotal in propelling development initiatives nationwide.
  • SHGs are evolving into modern cooperatives, managing diverse tasks like water supply, waste management, community kitchens, and slum development.

Webinar Highlights

  • Sunita Narain, Director General of the Centre for Science and Environment (CSE), emphasized the significance of SHGs at a webinar commemorating International Women’s Day.
    • The webinar was organized by CSE in collaboration with Down To Earth magazine, featuring a cover story on SHGs.
  • Distinguished panelists included notable women leaders and entrepreneurs from various SHGs across India:
    • Meenu Singh, Director of AIIMS, Rishikesh.
    • Heenaben Dave, Vice President of SEWA (Self-Employed Women’s Association),
    • Meena Rahangdale, President of Yogyata Swa Sahayata Samuh, Balaghat (Madhya Pradesh).
    • Mini Varghese, Mentor Resource Person at Kudumbashree, Kerala.
    • Padma Tashi, Production Manager at Looms of Ladakh Women’s Cooperative, Leh.
    • Sabita Behera, Jal Saathi, Puri (Odisha).

 SHG Impact and Membership Statistics

  • Data from the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission in December 2023 reveals that India hosts nine million SHGs.
  • These SHGs have nearly 100 million women as active members.
  • With 65 million villages in India (according to the 2011 Census), there are approximately 14 SHGs per village, and every eighth Indian woman is an SHG member.
  • Down To Earth estimates that each SHG facilitates the initiation of eight to 10 women-owned businesses, showcasing their significant role in fostering entrepreneurship.

Historical Context and Evolution of SHGs

  • The origins of SHGs in India can be traced back to the 1970s, notably with the formation of SEWA (Self-Employed Women’s Association) in Gujarat.
  • In 1992, SHGs were linked to banks through the SHG Bank Linkage Project (SHG-BLP), facilitating the provision of small loans for livelihood opportunities.
  • Further momentum was gained in 1999 when the government integrated SHGs into the Swarn Jayanti Gram Swarojgar Yojana to promote self-employment in rural areas.

Government Support and Strengthening of SHGs

  • The government’s deliberate efforts have strengthened SHGs, positioning them as key executors of India’s development agenda.
  • In 2014, the creation of the Community Investment Fund provided SHGs with up to Rs 50,000 annually to design local livelihood programs.
  • India’s SHGs collectively represent the world’s largest microfinance project, disbursing loans amounting to Rs 1.7 lakh crore by February 2024.
  • The Economic Survey of India highlights the credit discipline and reliability of SHGs, with a bank repayment rate of over 96%.

Empowerment and Recognition

  • In a predominantly male-dominated society, SHGs offer women a sense of empowerment and recognition.
  • Membership in an SHG is considered a badge of honor, symbolizing a new identity of power for women.
  • SHGs serve as exemplary models of how marginalized groups can effectively manage and sustain development initiatives previously deemed impossible.

 

Source: Hans India Editorial

https://www.cseindia.org/india-s-women-led-self-help-groups-are-emerging-as-the-world-s-biggest-microfinance-project-12094

Mains Question

In the context of India’s development agenda, discuss the role of Self-Help Groups (SHGs) in empowering women and fostering entrepreneurship. (250 words)