Self-help groups (SHGs) have become a crucial tool for empowering women in rural India. These groups, typically comprising 10 to 20 women from the same community, pool their resources to start small businesses, provide mutual support, and access financial services that would otherwise be out of reach.

The National Rural Livelihood Mission (NRLM), launched by the Government of India, has been instrumental in scaling up SHG initiatives across the country. With over 80 million women involved in SHGs today, these groups are making significant contributions to rural economies. Through small-scale industries such as handicrafts, dairy farming, and tailoring, women in SHGs are generating income and improving their families’ financial stability.

One of the most successful examples of SHGs can be found in the state of Kerala, where the Kudumbashree initiative has empowered over 4.5 million women. Kudumbashree provides women with microloans, training, and market access, enabling them to launch small businesses and lift their families out of poverty.

The impact of SHGs extends beyond financial gains. These groups foster social solidarity, improve decision-making within families, and enhance women’s confidence. Many SHG members have gone on to become community leaders or elected representatives in local governance structures.

Despite these successes, SHGs face challenges such as limited access to credit, poor infrastructure, and a lack of market linkages. Addressing these issues will be key to expanding the reach and impact of SHGs in rural India.

In conclusion, self-help groups have played a transformative role in empowering women and improving livelihoods in rural India. With continued support from the government and NGOs, SHGs can further enhance their impact and contribute to sustainable development.