The Ministry of Rural Development has reached a significant milestone under the Deen Dayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), disbursing over Rs.11 lakh crore in credit to women Self-Help Groups (SHGs) through formal financial institutions. This achievement underscores the government's commitment to inclusive development, women's empowerment, and strengthening grassroots financial resilience. The core model of DAY-NRLM is designed to eradicate rural poverty by organizing impoverished women into robust community institutions and supporting their livelihoods.
SHGs have emerged as vital conduits for credit delivery in rural areas, facilitating meaningful financial inclusion and nurturing women-led enterprises. This sustained flow of credit highlights the entrepreneurial spirit of rural women, enabling them to establish and expand income-generating ventures. The success of this initiative is largely attributed to the committed banking partners who have played a crucial role in transforming the aspirations of millions of women into thriving livelihoods.
The dedicated Bank Sakhis, who are SHG women members serving as banking agents, have also been instrumental in this task. Their tireless efforts in credit facilitation and repayment support have been pivotal, acting as trusted liaisons between SHGs and formal banking institutions. The SHG movement, through initiatives like DAY-NRLM and the Lakhpati Didi scheme, continues to empower millions of women. The Rs.11 lakh crore disbursement figure highlights the success of initiatives offering collateral-free loans, interest subventions, and other financial assistance, backed by an exceptional repayment rate of over 98 percent.
Empowering Women Through Financial Inclusion
This achievement is more than a statistic; it is a celebration of the potential unleashed when women are empowered with trust, tools, and opportunity. Together, it will help in building a more inclusive and resilient rural India. The banks have extended loans and financial services under priority sector lending and have simplified credit access and procedures for SHG members. On the other hand, the Bank Sakhis have supported the members with banking transactions, documentation, and loan applications, promoted financial literacy and awareness of schemes like insurance and pensions, facilitated Aadhaar and mobile seeding for bank accounts, and strengthened community-based recovery mechanisms for timely loan repayment.
In the broader context of India's economic landscape, this achievement aligns with the country's vision of becoming a global economic powerhouse. India has emerged as the world's fourth-largest economy, driven by domestic reforms and global positioning under the vision of Aatmanirbhar Bharat. The country's real GDP is growing at 6.5%, and nominal GDP has tripled from ₹106.57 lakh crore in 2014–15 to ₹331.03 lakh crore in 2024–25. India is projected to be the world's fastest-growing major economy, with a growth rate of 6.3% to 6.8% in 2025-26.
Strategic Initiatives and Economic Growth
The government's focus on inclusive development and women's empowerment is evident in various initiatives and policies. The Union Budget 2024-25 outlines ambitious initiatives across various sectors, with a significant focus on employment, skilling, MSMEs, and manufacturing support. The budget highlights the government's achievements from the past year and sets forth objectives and allocations for the year ahead, addressing policy needs and financial planning.
The Pradhan Mantri Mudra Yojana (PMMY) is another significant initiative that has facilitated the extension of over 28.89 crore loans, amounting to US
213.22 billion (Rs.17.77 lakh crore) in sanctioned funds over the past five financial years. In FY24, within the framework of PMMY, a sum totaling US 63.82 billion (Rs. 5.32 lakh crore) was approved across 6.67 crore loan accounts. Among the three categories, Kishor loans had the largest share of 48%, followed by Shishu loans at 28% in terms of disbursement amount. Notably, 41.76% of the total amount disbursed went to women borrowers, with 63.63% of the total accounts belonging to women.
The success of these initiatives is a testament to the power of financial inclusion and the transformative impact of empowering women. It reflects the government's commitment to creating a more equitable society and fostering economic growth in rural areas. The achievements of the SHG movement and other initiatives are a shining example of how targeted interventions and strategic partnerships can drive positive change and create a more inclusive and resilient India.
