Ethics Theory, TLP-UPSC Mains Answer Writing
Q. 4. Self-Help Groups (SHGs) play a critical role in rural development and women’s empowerment in India, yet their full potential remains unrealized. Discuss the key structural and socio-cultural barriers that limit their effectiveness, and suggest measures to enhance their impact. (250 words, 15 marks)
Introduction
Over 12 million SHGs operate in India, many linked to banks under schemes like DAY-NRLM. Though crucial for grassroots empowerment, especially of women, SHGs face institutional and cultural barriers that constrain their full developmental impact.
Body
Important Role Played by SHGs
- Promoting Financial Inclusion: SHGs improve access to savings, credit, and insurance among the rural poor. Example: Kudumbashree in Kerala offers micro loans to women.
- Enabling Women’s Empowerment: SHGs foster decision-making, confidence, and community leadership among women. Example: SHG women in Andhra Pradesh run local canteens and tailoring units.
- Enhancing Livelihood Opportunities: SHGs enable income-generating activities via collective entrepreneurship. Example: MAVIM in Maharashtra links SHGs to markets and training; Lakhpati Didi promotes rural women micro-entrepreneurs.
- Community Mobilisation & Social Capital: SHGs foster solidarity and participatory governance in villages. Example: SHGs in Tamil Nadu lead sanitation and anti-liquor campaigns.
- Contributing to Public Welfare Delivery: SHGs assist in running ration shops, midday meals, and health awareness campaigns. Example: SHGs in Bihar support PDS and health outreach under World Bank support.
Challenges: Structural and Socio-Cultural Barriers
- Inadequate Financial Literacy and Digital Access: Many SHG members lack formal education and struggle with digital banking. Example: In Jharkhand, women depend on male intermediaries for transactions.
- Limited Market Linkages and Value Addition: SHGs face challenges in scaling up production and accessing markets.
- Weak Federations and Oversight: Poor handholding and capacity support reduce the collective strength of SHGs. Example: NABARD flagged weak support systems in Odisha SHGs.
- Patriarchal Norms and Resistance: Traditional gender roles limit participation and autonomy of women in SHGs.
- Caste-Based Discrimination and Exclusion: Marginalised groups often face exclusion or token participation in SHGs.
- Irregular Meetings and Low Group Cohesion: Migration or domestic work hinders regular SHG activity. Example: Participation drops during harvest season in MP.
- Credit Utilisation Gaps and Loan Misuse: Borrowed funds are used for consumption rather than productive use.
Solutions: Strengthening SHG Impact
- Financial Literacy and Digital Training: Train SHG members in digital banking and credit planning through convergence with Digital India, PMGDISHA, and capacity-building via SHAKTI Portal.
- Robust Federation Building: Implement continuous capacity-building support through DAY-NRLM and link SHGs with producer groups and Farmer Producer Organisations (FPOs).
- Market Access and Branding Support: Facilitate tie-ups with e-commerce platforms, government fairs, and branding initiatives like ODOP (One District One Product).
- Inclusive SHG Formation Norms: Enforce caste and gender representation quotas in SHG formation and leadership to foster equity and diversity.
- Community Sensitisation Campaigns: Leverage ASHA workers, PRI leaders, and social media to challenge patriarchal norms and promote SHG autonomy across states.
Conclusion
SHGs have the potential to transform rural India socio-economically, but this requires tackling deep-rooted structural and cultural limitations. A multi-pronged support strategy can empower SHGs as true engines of inclusive rural development.
