Self-Help Groups (SHGs) have been pivotal in empowering urban and rural women in India. India is a country where women often face a variety of injustices, including gender-based discrimination and norms, violence and lack of opportunity, which puts them at an economic disadvantage. Due to these circumstances, many women in the country are unable to lead independent lives and have to depend on family members or spouses for survival. Therefore, Self-Help Groups (SHGs) aim to empower poor women and bring them out of this dependency cycle.

Background

SHGs originally focused on “savings and credit groups,” which have since expanded to include health and nutrition-based initiatives, “improving governance and addressing social issues related to gender- and caste-based discrimination,” according to World Development.

One of the programs that has been especially influential for the upliftment of rural women in India has been the National Rural Livelihood Mission (NRLM), launched in 2013. This program specifically works towards achieving the SDGs, including “no poverty, zero hunger, good health and well-being, providing quality education and promoting gender equality, all closely linked to the welfare of the most disadvantaged segments of society.”

A 2024 study revealed that greater involvement of tribal women in Self-help groups under the NLRM scheme led to positive impact on their political empowerment in the rural parts of the state of Jharkhand. The literature revealed that community engagement by these women led to increased networking across villages, higher levels of cooperation and the promotion of equality based on shared norms and values.

Credit Outreach Program

A more recent example is the Mega SHG credit outreach program in the city of Madurai, where the Indian Bank handed over a sanction worth Rs. 10 billion to more than 3,000 women SHGs in the state of Tamil Nadu.

Similar efforts were laid out under the program in the city of Bhubaneswar, where the outreach event delivered roughly Rs. 5.10 billion in loans to 9,961 SHGs. The event was organized under the pan-India initiative to extend formal credit access to women in Self-Help Groups.

This initiative marked a major milestone for the Indian Bank, which is credited with introducing the SHG-Bank Linkage Program in India, back in 1989, further aligning under the NRLM umbrella, as emphasized by the Department of Financial Services Secretary M. Nagaraju.

Positive Impacts

A World Development article found that SHGs had an overall positive impact on aggregate measures of women empowerment. This implied greater control over their incomes, over decision-making in the context of credit and greater participation within the community in general. Importantly, the article signified that SHG participation positively impacted the intrahousehold inequality between men and women.

Although these are important advancements for women in the Indian subcontinent, the article also cautions against assuming that women’s empowerment occurred in every realm. Despite the ascent, there are areas where SHG participation has yet to make a dent. For instance, women’s participation in asset and production ownership was still weaker. The article accounted for deep-seated gender norms as the reason, citing these societal norms are harder to change.

The Future

These examples of empowering rural women in India are not just words on paper. They signal a new era of transformation—one where women, especially those from rural communities, no longer suffer from centuries-old norms and economic dependence.

Through strategic implementation of these programs, the Indian government is not only investing in but also sowing the seeds for long-term social change. The journey is far from over, and challenges remain. However, the success of SHGs indicates how the combination of grassroots initiatives with policy support can create real change in society. While the road ahead is long, it lays the foundation for a hopeful future rooted in women’s empowerment, where every woman can live a life of dignity and independence.

– Vasudhaa Shakdher

Vasudhaa is based in Vancouver, B.C, Canada and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr