Introduction to the Kudumbashree Mission and Self-Help Groups (SHGs)

  • Kudumbashree, a significant SHG, recently celebrated its 26th anniversary in Kerala.
  • This initiative now involves over 46 lakh members across 3 lakh neighbourhood groups.
  • Initially focused on fostering women's enterprises, it now encompasses legal aid, loans, counselling, cultural engagement, and disaster
  • An SHG is a self-governed entity comprising individuals sharing similar socio-economic backgrounds, intent on collectively pursuing common purposes.

A Glimpse into the Origin of SHGs in India

  • Early Efforts (Pre-1970s): Informal SHGs, particularly among women for collective action and support.
  • SEWA (1972): Established by Ela Bhatt, SEWA stands as a milestone for organising poor, self-employed women workers.
  • MYRADA & Pilot Projects (Mid-1980s): MYRADA introduced SHGs as a microfinance strategy to help provide credit to the less previleged.
  • NABARD & SHG-Bank Linkage (1992): Initiated by NABARD, this move connected SHGs with formal banking institutions aiding in financial services access.
  • Government Recognition (1990s-Present): Government support to SHGs via schemes like Swarn Jayanti Gram Swarozgar Yojana (SGSY) and the National Rural Livelihoods Mission (NRLM) has extended SHGs' reach and impact.

Government Initiatives and Policy Support to SHGs

  • Deen Dayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM)
  • SHG-Bank Linkage Programme (SBLP)
  • Mission for Financial Inclusion (MFI)

Impact of SHGs on Women

  • Economic Empowerment: SHGs enhanced women's access to microfinance and credit, encouraging entrepreneurship, income generation, and financial stability.
  • Women's Agency and Empowerment: SHGs empowered women, enabling them to challenge traditional gender norms and embrace leadership
  • Impact on Family and Society: SHGs promoted equitable familial relationships, local governance roles, and ameliorated social issues like domestic

Challenges and Limitations of SHGs

  • Sustainability Concerns: SHGs' long-term success hinges upon continued support, effective leadership, and revenue sufficiency.
  • Over Reliance on External Aid: Dependency can hamper self-sustainability and viability, especially in disaster-prone areas.
  • Intersectional Challenges: SHGs often face caste, class, and regional challenges resulting in unequal benefit distribution.
  • Lack of Advanced Machinery and Technology: Most SHGs operate on a local level focusing on agricultural activities, often without relying on technology. 

The Way Forward

  • Technological Inclusion: Digital platforms can enhance efficiency and scale of operations.
  • Strengthening Financial Institution Linkages: Encouraging formal financial interactions empowers SHGs and promotes financial
  • Fostering Environmental Sustainability: Encourage SHGs to integrate sustainable practices into their activities. Awareness for Inclusivity: Encourage SHGs to consider an inclusive approach, addressing discrimination, and promoting equitable participation.