Self Help Group

Growth and development in India

Definition

Self-help groups are informal groups of people

who come together to address their common
problems.

A self-help group is a financial intermediary

committee usually composed of 10 to 25 local
women between the ages of 18 and 40.

one important characteristic of self-help groups is

the idea of mutual support – people helping each
other
Growth and development

• Self-help groups (SHGs) have played a significant role in the

economic and social development of India
• The growth and development of SHGs in India can be traced back
to the 1980s when non-governmental organizations (NGOs) started
promoting the concept of microfinance and encouraging the
formation of SHGs. The idea gained momentum in the 1990s, and
today, SHGs have become an essential component of poverty
alleviation programs in India.
National Bank for Agriculture and Rural
Development (NABARD)
Here are some key facts about the growth and development
of SHGs in India ,

There were over 9 million SHGs in India as of

March 2020, with a total membership of over 117
million.
The majority of SHGs in India are women's
groups, with women accounting for over 90% of SHG
membership

The state of Andhra Pradesh has the highest

number of SHGs in India, followed by Tamil Nadu and
Karnataka.
National Rural Livelihoods Mission (NRLM):

Launched in 2011, NRLM aims to alleviate poverty by

promoting livelihood opportunities for rural households. One
of its key strategies is to strengthen and expand the SHG
movement in the country.
Government schemes and programs

• The Indian government has launched various

schemes and programs to support the
growth and development of SHGs. For
instance, the Deen Dayal Upadhyaya
Grameen Kaushalya Yojana (DDU-GKY) aims
to provide skill training to rural youth and
women through SHGs.
Non-governmental organizations (NGOs):

• NGOs have been actively involved in promoting the

SHG movement in India. They provide support to SHGs
in various areas, such as capacity building, market
linkages, and access to credit.
Microfinance institutions (MFIs)

• MFIs have been providing financial assistance to

SHGs, especially in the form of microcredit.
This has helped SHGs to undertake income-
generating activities and become self-reliant.
• SHGs have also been successful in promoting entrepreneurship
and income generation, particularly in rural areas. Many SHGs
engage in activities such as handicrafts, agriculture, and small
business ventures
• The government of India has launched several programs to
support the growth and development of SHGs, including the
National Rural Livelihoods Mission (NRLM) and the Deendayal
Antyodaya Yojana-National Rural Livelihoods Mission (DAY-
NRLM).
• Overall, the growth and development of SHGs in India have
been significant, and these groups have played an important
role in promoting economic and social empowerment,
particularly among women in rural areas. However, there is still
much work to be done to ensure that SHGs are sustainable and
continue to have a positive impact on the lives of their
members.