Paper Details

Name: Venkatesha Prasanna. P.K
Country: India

Year: 2022
Volume: Volume-9, Issue-2 (July-December)
Page Number: 25-39

ABSTRACT:
The journey of Self-Help Groups (SHGs) in India reflects a strong story of grassroots
economic transformation, as they have proven effective in mobilizing savings, expanding
access to credit, generating livelihoods, and empowering women. Despite challenges, SHGs
remain a key tool for poverty alleviation and rural development. This study explores the
growth and economic performance of SHGs from 2012–13 to 2020–21 using recent data, and
assesses the impact of participation on members‘ income generation, household income,
savings, standard of living, and decision-making ability through a paired t-test. Findings
reveal that SHGs in India grew steadily during this period, with the number of groups rising
from 73.18 lakh to 112.23 lakh—an increase of nearly 53%—and the funds associated with
them increasing more than 4.5 times from ₹8,217.25 crore to ₹37,477.61 crore. Other datasets
show similar upward patterns, though with varying intensities and occasional declines, such
as a contraction in 2013–14 and a dip in 2020–21 due to external disruptions. Financial
performance was more dynamic than membership growth, with amounts linked to SHGs
peaking at ₹1,08,075.07 crore in 2019–20 before slightly falling to ₹1,03,289.71 crore in
2020–21. The case study results confirm that participation in SHGs has a significant positive
impact on members, improving their income generation, household savings, standard of
living, and decision-making capabilities, thereby reaffirming SHGs as vital drivers of
inclusive growth in India.
Key words: Self-Help Groups (SHGs), NABARD, Economic Performance, Eempowering
Women.