Self-Help Groups (SHGs) are emerging as vehicles of socio-economic transformation in rural India. Examine the role of government in scaling their reach and effectiveness. (Answer in 250 words)

SHG (Self-Help Groups) are grass root level organisations aimed to mobilise funds and support of masses for ensuring public participation in development.

Vehicles of Socio-economic transformation:

1. Women empowerment

↪ 12 million SHG with about 88% of them being all-women.

2. Promoting saving culture

3. Mobilize funds for members

4. Collective effort of society

Positive steps of government in scaling SHGs reach and effectiveness:

1. Participatory governance and its role in policy making

2. Collaboration with civil society organisation and NGOs

↪ Spread awareness.

3. Organising skill-training camps

↪ Eg. Requisition of Pearl-learning, Rashtriya Kaushal Vikas Yojana, etc

4. Formalisation of credit to SHGs at cheaper rate

↪ multiplier effect and self-employment opportunity

5. Promote women cottage industries

Limitation in keeping benefit of SHGs:

1. Lack of formalisation of care economy

2. Bureaucratic hurdles and red tapism

4. People awareness

↪ Required collaboration with multiple stakeholder

The micro-finance model of SHGs can be transformative and acts as growth engine for self-reliant India