‘The emergence of 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.
UPSC repeatedly asks whether SHGs and microfinance reduce poverty and empower women, SHG-Bank Linkage, socio-cultural hurdles, and accountability of microfinance.
What to cover
SHG-BLP and NRLM (DAY-NRLM)
Successes: Kudumbashree, Jeevika
Limits: debt traps, elite capture, social barriers
Regulation of MFIs
Writing the answer
Link women (GS1), development actors (GS2) and financial inclusion (GS3)
These notes are for the whole theme, built from all 6 of its PYQs. UPSC does not publish model answers.