Self-Help Groups (SHGs) are emerging as vehicles of socio-economic transformation in rural India. Examine the role of government in scaling their reach and effectiveness. (Answer in 250 words)

SHG (Self-Help Groups) are grass root level organisations aimed to mobilise funds and support of masses for ensuring public participation in development.

Vehicles of Socio-economic transformation:

1. Women empowerment

↪ 12 million SHG with about 88% of them being all-women.

2. Promoting saving culture

Saving leading to secure's and investment in economy

3. Mobilize funds for members

Solves problem of higher interest

4. Collective effort of society

Positive steps of government in scaling SHGs reach and effectiveness:

1. Participatory governance and its role in policy making

2. Collaboration with civil society organisation and NGOs

↪ Spread awareness.

3. Organising skill-training camps

↪ Eg. Requisition of Pearl-learning, Rashtriya Kaushal Vikas Yojana, etc

4. Formalisation of credit to SHGs at cheaper rate

↪ multiplier effect and self-employment opportunity

5. Promote women cottage industries

such as Padad, soap, khadi at fairs and global expo-

Limitation in keeping benefit of SHGs:

1. Lack of formalisation of care economy

2. Bureaucratic hurdles and red tapism

3. SHGs seen as mere local groups → lack of social apathy

4. People awareness

↪ Required collaboration with multiple stakeholder

The micro-finance model of SHGs can be transformative and acts as growth engine for self-reliant India

— Ujjwal Priyank · AIR 10