Is Convergence of SHGs and SGSY Approaches of Lending a Necessary Condition for the Growth of Microfinance Sector in India?

"Growth with Social Justice" being one of the objectives of the planning process since its inception in 1951, planned efforts were made to ameliorate the living standard of masses in a systematic manner. The strategy for raising the standard of living or the quality of life of the people was mainly based on the 'trickle down effect' which anticipates that the growth of the economy and the per capita income would lead to a better standard of living. However, this strategy could not deliver the desired results on account of various factors. As the basic objective of development of a nation is to improve the welfare of the people, every nation strives hard not only to increase her wealth and productive resources but also to ensure better standard of living by providing them with sufficient food, shelter, clothing, medical facilities, education, etc., the formulation of a comprehensive and long term plan to achieve the welfare objectives of human being has become imperative.