Self-Help Groups (SHGs) in Basti, Uttar Pradesh: Composition, activities and impact

Abstract

This paper analyzes the composition, activity, and socio-economic contribution of Self-Help Groups (SHGs) in the Basti district of Uttar Pradesh, under the DAY-NRLM. The study employs a descriptive and analytical research design as it combines both primary (gathered by the studies of 120 SHG women members using structured questionnaires and interviews) and secondary data (government reports and published studies). The analysis is based on such important dimensions as socio-demographic structure, institutional support system, economic performance, social empowerment, and limitations of SHG members.

The results show that SHGs in Basti are mostly made up of women belonging to economically disadvantaged and socially disadvantaged groups, especially Scheduled Castes and Other Backward Classes. The participation of SHGs has resulted in tremendous changes in the income level, savings behavior, access to institutional credit, and diversification of livelihoods. Also, SHGs have led to increased self-confidence, decision-making, financial literacy, and community participation among women, hence social empowerment and grassroots democracy.

Nevertheless, gender discrimination, low literacy levels, poor health and sanitation, and limited access to resources are also reported to be critical challenges to the full potential of SHGs, according to the study. Regardless of these limitations, SHGs become powerful tools of rural inclusive development and empowerment of women. The results of the study conclude that although SHGs have begun to initiate significant socio-economic change, policy interventions and structural adjustments are needed to achieve sustainable and equitable development results.