Self-Help Groups (SHGs) can play a crucial role in alleviating rural poverty by providing women with access to microfinance, enabling them to start small businesses and improve their livelihoods. Examine.

Self-help groups refer to organizations of people who mobilize energy and resources for own benefit and collective benefit. India has 88% of SHGs led by women. Crucial role in alleviating poverty: I. Microfinance 1. Access to organized credit through 'Head Bank' Scheme of NABARD 2. Allows interest-free (collateral-free) loans under MUDRA 3. Access to support under Deen Dayal Ujwalayi → Rural/Urban II. Small Businesses 1. Promotes employment opportunities through schemes such as AJEEVIA 2. Creates an ecosystem of initiatives eg. Kadamba tree 3. Promotes sustainable women-led entrepreneurial act (eg. grocery store in Madhya Pradesh dev) III. Improves livelihoods 1. Promotes food security through food fortification SHGs (eg. Uttarpradesh) 2. Improves status in society and challenges patriarchy 3. Prevents disaster outreach/water stress through innovative groups eg. Green Himalaya SHG, Dolla in Punjab, Taarla in districts

Livelihood Mission: II. Small Businesses 1. Promotes employment opportunities through schemes such as AJEEVIA 2. Creates an ecosystem of initiatives eg. Kadamba tree 3. Promotes sustainable women-led entrepreneurial act (grocery store in Madhya Pradesh dev) III. Improves livelihoods 1. Promotes food security through food fortification SHGs (eg. Uttarpradesh) 2. Improves status in society and challenges patriarchy 3. Prevents disaster outreach/water stress through innovative groups eg. Green Himalaya SHG, Dolla in Punjab, Taarla in districts However, certain challenges faced: 1. Limited accessibility to finance amidst rising NPAs (over 80-30% for SHG) 2. Lack of functional expertise due to numeralisation and illiteracy (75% in India) 3. Limited technological integration such as Artificial Intelligence, software as solution, market platforms, demanding forecasting 4. Double burden of work both at home and SHG 5. Linkage forward backward linkage through e-NAM, DFSWAN, DNDC etc way forward 6. Provide training under Vrikshakerama, launched Vilkot Yojana 7. Promote credit availability through guarantee schemes SHGs need to shift from 'Panchayat' to 'Dasettari' encompassing health, education, climate

— Mudita Bansal · AIR 44