“The emergence of the Self-Help Groups (SHGs) in contemporary times points to the slow but steady withdrawal of the State from developmental activities.” Examine the role of the SHGs in developmental activities and the measures taken by the Government of India to promote the SHGs. (Answer in 250 words)

SHGs are member-owned collectives built around savings, internal lending and mutual accountability. Their growth complements, but should not replace, the developmental responsibility of the State.

• They provide collateral-light credit, reduce dependence on moneylenders and connect poor women to formal banking and digital payments.
• Collective procurement, production, marketing and skill development improve livelihoods; federations create scale and bargaining power.
• SHGs advance women’s voice in Gram Sabhas, nutrition, sanitation, domestic violence prevention and local monitoring.
• They strengthen social capital and enable last-mile delivery of entitlements, but may exclude the poorest, reproduce local hierarchies or overburden women with unpaid labour.

DAY-NRLM promotes universal social mobilisation, village organisations, capacity building, revolving funds, community investment funds and bank linkages. NABARD’s SHG-Bank Linkage Programme, MUDRA, livelihood missions, interest subvention, skill schemes and producer-group support widen finance and enterprise opportunities. Digital bookkeeping and women’s collectives are being integrated with nutrition and local governance. The State must provide quality public services, risk protection, market infrastructure and professional support—not outsource welfare. Improve credit quality, audits, market access, childcare and inclusion of persons with disabilities and the ultra-poor.

SHGs should not become unpaid delivery agents for every scheme. Clear service standards, remuneration for community resource persons and independent evaluation can preserve agency while ensuring that the State remains responsible for rights and public goods.

SHG; DAY-NRLM; social capital; financial inclusion; women-led development; community institutions.