Based on the United Nations recent estimates, India is homefor 1.37 billion people equivalent to 17.74 percent of the total world’spopulation. Interestingly, India is projected to be world’s most populouscountry by 2024. On one hand, India is home for one-fifth of world populationand on other hand, India is home for vast population living in unhygienicconditions, poverty and hunger. India is unable to provide basic needs to itsall citizens i.e. food to eat, house to live in, improved nutrition, basicminimum saving, etc. Therefore, the uncontrolled population growth accompaniedunemployment is the major challenges that government of India is meted with.Unemployment results in poverty and poverty leads to many evils. Surely, Indiais one of the fastest growing economies of world but India is unable to createjobs for its huge population especially for its 22 percent of population thatlive below poverty line.
All the governmentsthat ruled India since independence tried to curb poverty and joblessness bypromoting economic growth models and anti-poverty programs. To some extent theysucceeded. But the uncontrolled population growth accompanied by unemploymentrendered almost majority of the anti-poverty as well as anti-unemploymentscheme useless. In this situation, poverty elimination has been an uncuredchallenge. Therefore, the conditions of economically disadvantaged groups andunemployed youth are yet pitiable.
In 1999, Government of India (GoI) introduced Swarn JayantiGram Swarojgaar Yojana (SGSY) to promote self-employment in rural areas throughformation and skilling of Self Help Groups (SHGs). The programme evolved as anational movement in 2011 and became National Rural Livelihoods Mission (NRLM).At state level, SRLMs are working strenuously to form, nurture and strengthenSHGs. NRLM, by design, is more focused, time bound and outcome based programme.The programme was renamed in November 2015 as Deendayal Antyodaya Yojana (DAY –NRLM).
A SHG is a voluntary association of homogenous class (poor)with common goals of social and economic empowerment. SHGs, also known asmutual help, mutual aid or support groups, are the groups of people who providemutual support for each other. It is a self governed group of self employed menor women from rural areas with weak economic base. The members voluntarilyorganize themselves into a group for the eradication of poverty of the members.They voluntarily save amount whatever they save conveniently from their lowincome. Then they mutually agree to a common fund and lend to a member formeeting their productive and emergent needs. A SHG inculcates idea ofentrepreneurship, team work, utilization of local resources, to create habit ofsaving, develop leadership qualities, group activity, etc.
To generate new avenues and utilise potential resources, GoItook initiative of inculcating spirit of entrepreneurship at gross root levelin J&K too. Union Ministry for Rural Development awarded UMEED project ofJ&K Livelihood Mission for making pioneering efforts for institutionbuilding and capacity building in state to provide livelihood to economicallydisadvantaged groups. If someone is interested to start a business, he/sheneeds capital and resources. A poor can’t afford huge capital. Therefore, theidea of micro-financing through SHG was introduced in J&K. Micro-financethrough SHGs is offered that is best form of credit for reaching the unreachedand the under reached class. Micro-financing is a provision of financialservices that’s available to low income class. If an aspiring entrepreneurdesires to generate income, create assets, manage risks and meet householdneeds, a loan is provided to start up.
As per reports, more than 30,500 women SHGs were operationalin J&K at the end of year 2018. Amongst them more than 900 were registered.Normally, the number of members should not exceed 20. If it exceeds,registration becomes compulsory. Generally, a SHG consists of 10-20 persons. Itwould be better, if all the members of group would come from BPL families.However, if necessary, a maximum of 20% and in exceptional cases a 30% ofmembers would be taken from APL families. Further, APL members should notbecome office bearers. SHGs go through three stages of evolution: Groupformation, Capital formation and Skill development to take up an economicactivity to create revenue.
After first stage of group formation, if a group is inexistence for six months and has shown the potential of viable group enter thestage, where it receives the revolving fund of Rs 25000 from the bank as cashcredit facility. Loans are provided according to individual eligibility, takinginto account the requirements of the project. With the central and stateGovernments, along with the National Bank for Agriculture and Rural Development(NABARD), extending the required support for women SHGs as a strategy for womenempowerment.. The movement is eventually expected to reduce gender inequalitiesin the country and encourage entrepreneurship.
To make this movement an economic success, GoI incollaboration with state governments and provide every sort of help to thepeople involved in it. Government realises the potential and therefore set astage to harness this potential. It lies in the hands of people how theyrespond and make schemes successful. It is responsibility of members of SHGs toimplement project in a meaningful way where whole rural society would harnessbenefit. Today, SHGs operate in 29 states and 5 UTs, covering whole India aftersetting a well established stage for disadvantaged groups.