Author Name: Himanshi Dahiya

Abstract

Self-Help Groups (SHGs) have emerged as one of the most significant grassroots mechanisms for promoting women empowerment in India. These groups, primarily composed of rural women , facilitate inclusion, collective decision-making, entrepreneurship, and social awareness . The SHG movement , strengthen through initiative such as National Rural livelihood Mission and the SHGs-Bank Linkage programme introduced by National Bank for Agriculture and Rural Development, has transformed the socio – economic status of millions of women across the country. This research paper examines the role of SHGs in enhancing women’s economic independence , political participation, social mobility and decision making power within households and communities .

The study explores how SHGs contribute to poverty reduction, access to credit, skill development, and leadership opportunities. It also analyses the challenges faced by SHGs, including inadequate financial literacy, market accessibility, limited training, and patriarchal barriers. The paper adopts a qualitative and analytical approach
using secondary data from government reports, journals, policy documents, and case studies.

The findings suggest that SHGs have significantly improved women’s confidence, income generation, and participation in local governance. However, structural inequalities and institutional limitations continue to hinder their full potential.The paper concludes that strengthening SHGs through digital literacy, financial support,
policy intervention, and capacity-building initiatives can further enhance women empowerment and rural development in India.

Keywords: Self-Help Groups, Women Empowerment, Rural Development, Financial Inclusion, Micro finance, SHG-Bank Linkage, Gender Equality, Livelihood