“Micro-Finance as an anti-poverty vaccine, is aimed at asset creation and income security of the rural poor in India”. Evaluate the role of the Self Help Groups in achieving the twin objectives along with empowering women in rural India.

Crucial role in alleviating poverty

I. Microfinance → (1) Access to organized credit through 'lead bank' scheme of NABARD. → (2) Allows interest free / collateral free loans under MUDRA. → (3) Access to support under Deen Dayal Upadhyay → Rural / urban Livelihood Mission

II. Small Businesses → (1) Promotes employment opportunities through schemes such as AJEEVIKA (eg - Lijjat Papad) → (2) Creates an ecosystem of SHGs (eg - Kadambshree) → (3) Promotes sustainable, women led entrepreneurial acts (eg - grocery stores in Madhya Pradesh by Jeevi).

III. Improves livelihoods → (1) Promotes food security through food fortification SHGs (eg - Uttar Pradesh) → (2) Improves status in society and challenges patriarchy → (3) Prevents disaster outbreaks / water stress through innovative groups (eg - Green Himalaya SHG, Dokla in Arunachal works in dustbins)

However, certain challenges faced:

1. Limited accessibility to finance amidst rising NPAs (over 20-30% for SHG)
2. Lack of functional expertise due to ruralization and illiteracy (77% in India literacy)
3. Limited technological integration such as Artificial Intelligence, Software as a solution, market platforms, demand forecasting.
4. Double burden of work, both at home and SHG.

Potential way forward:

1. Promote forward backward linkages through e-NAM, DARPAN, ONDC etc
2. Provide training under Vishwakarma, Kaushal Vikas Yojana
3. Promote credit availability through guarantee schemes.