SHGs - A Panacea to Poverty Eradication:Evidence from Indian States

Despite various developmental programmes announced by the Government time and again, incidence of poverty in the country still remains high. Self Help Groups (SHGs) represent a form of intervention that is a radical departure from most of the existing poverty alleviation programmes proved as an effective strategy of poverty alleviation, human development and social empowerment. The SHGs have been recognized as useful vehicles to help the poor in accessing financial resources, which were hitherto not available to them and has helped them break away from the clutches of exploitative moneylenders. Economic self-reliant people play a more active role in decision-making and are able to contribute to the economic growth. Access to financial services and the subsequent transfer of financial resources to poor people enable them become the economic agents of change. In this paper, an attempt has been made to analyze the impact of SHG in alleviation of poverty in India. The author also made an effort to show how SHGs become successful as a model of inclusive growth.It is observed that the percentage of BPL population is less in the states where there is large number of SHGs.