Good News! Women Associated with SHGs can Earn 1 Lakh Per Year

The central government intends to ensure that women connected with self-help groups (SHGs) can earn at least Rs.1 lakh per year, according to a statement issued by the Rural Development Ministry on Saturday.

The Ministry said, “To bring a sharper focus on moving women to the higher economic order, the government has launched an initiative on creating Lakhpati SHG women, to enable rural SHG women to earn at least Rs1 lakh per annum”.

Further, it added, “For the realization of this ambitious goal, the ministry has envisioned livelihood support to 25 million rural SHG women in the next two years”.

According to the government, the National Rural Livelihood Mission adopts a saturation approach. Talking of the current scenario, 6,768 blocks have been covered by the initiative, with 7.7 crore women mobilized into 70 lakh SHGs.

Under the mission, poor women from various classes and castes organize SHGs and their federations, which provide financial, economic, and social development services to their members in order to increase income and quality of life. Annually, SHGs are credited to the tune of around 80 thousand crore rupees.

The Ministry said, “Over the years this money borrowed by SHGs through bank capitalization support is now being used for creating diversified livelihood opportunities. The figure of ₹1 lakh is both aspirational and inspirational for rural SHG women”.

According to the ministry, detailed advice has been sent to state governments in this regard based on various models of women's SHGs that exist around the country.

In addition, it hosted a stakeholders consultation workshop with the states, the Bill & Melinda Gates Foundation, and the Transformation Rural India Foundation to further examine this topic.

In the consultation, the importance of well-planned interventions to diversify livelihood activities at the household level, ranging from agriculture and allied, livestock, NTFP (Non-timber Forest Products) and other interventions through convergence were emphasized," said the rural ministry.

Further, it said, “The importance of strengthening SHG, VO (Village Organization) and CLFs (Cluster Level Federations) to anchor these kinds of interventions was also highlighted and stressed upon”.

It was stated that dedicated community cadres of SHG members trained in many professions would be instrumental in achieving their goals.