What is the concept of Self-Help Groups? Discuss its role in the socio-economic development of rural India. (HPAS Mains Question Paper 2022 – GS 2, Q.21)
SHGs are groups of people who support one another for a common goal. SHGs are groups of people who pool their resources and skills to improve their social and economic situation. These groups are typically formed by women, but men can also be members.
SHGs are based on the principles of self-reliance and mutual support. SHG members are encouraged to save a small amount of money regularly and use the savings to provide loans to group members for various purposes, such as starting a business, improving agricultural practices, or meeting emergency expenses.
SHGs have the following characteristics:
1. SHG participation is voluntary, and members join the group based on their interest and willingness to collaborate.
2.SHGs are typically small groups of 10 to 20 people, which aids in group cohesion and promotes effective decision-making.
3. SHG members meet regularly to discuss issues about their social and economic development, plan activities, and assess progress.
4. Savings and Credit Activities: SHG members pool their savings and lend to one another for various purposes.
5.SHGs provide a platform for members to build their capacities, learn new skills, and share their knowledge and experiences.
SHGs have a significant role to play in the socio-economic development of rural India:
- Women’s empowerment: SHGs have empowered women by providing a forum to express their concerns, share their experiences, and support one another. Women have gained confidence and become more self-reliant by participating in decision-making and managing their finances.
- Credit: SHGs provide credit to members who may not have access to formal banking institutions. SHGs typically provide interest-free or low-interest credit, making it easier for members to repay their loans.
- Income generation: SHGs have assisted members in generating income through various activities, including handicrafts, agriculture, and small businesses. Members have been able to improve their standard of living and support their families thanks to the income generated by these activities.
- SHGs have facilitated social inclusion by bringing people from various castes, religions, and communities together. SHG members have overcome social barriers and created a community by working together.
- Health and hygiene: SHGs have also aided in the improvement of rural health and hygiene practices. SHGs have assisted members and communities in adopting healthier lifestyles by organising health camps, awareness programmes, and sanitation drives.
Some successful SHGs in India include:
- Kudumbashree in Kerala: Kudumbashree is a statewide women’s SHG programme with over 4.4 million members in Kerala. The programme focuses on reducing poverty, empowering women, and developing communities.
- Arthik, Mahila Maharashtra Vikas Mahamandal (MAVIM): MAVIM is a Maharashtra state-run SHG programme that focuses on women’s economic empowerment. Over 1.5 million women in the state have benefited from the programme.
- In India, the Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM) is a national SHG programme that empowers women to alleviate rural poverty. Over 6 million women have benefited from the programme across the country.
Self-help groups have played an essential role in rural India’s socio-economic development by empowering women, increasing their income, and promoting social inclusion.
