JJEM: Special Edition 4 (May 2025)
JJEM: Special Edition 4 (May 2025)
2025-05-31
Synergizing Self-Help Groups (SHGs) for Achieving Sustainable Development Goals (SDGs)
Mrs.Pavithra B, Dr. G V M Sharma
Microfinance plays a crucial role in economic development by enabling income-generating opportunities for individuals at the lower end of the economic spectrum. It goes beyond offering credit, incorporating financial literacy, value-added services, and social support to empower marginalized communities. Over the years, microfinance has emerged as an effective tool for poverty alleviation, with diverse models and practices tailored to serve underserved populations. Non-Governmental Organizations (NGOs) and banks have been instrumental in widening the reach of microfinance initiatives. These efforts directly contribute to the United Nations' Sustainable Development Goals (SDGs) by fostering financial inclusion and social development. Self-Help Groups (SHGs), a key component of the microfinance ecosystem, have proven to be transformative in achieving SDG targets. These grassroots organizations utilize collective action to address issues like poverty, gender inequality, healthcare, education, and environmental sustainability. SHGs empower women by improving their economic and social status, dismantling structural barriers, and enabling active participation in decision-making processes. This paper explores the interconnected roles of microfinance, SHGs, and SDGs in driving socio-economic progress. Using ten years of data, it highlights the impact of SHGs on poverty reduction, gender empowerment, and community development in India. It also offers recommendations to enhance SHG practices and optimize microfinance strategies to accelerate progress toward sustainable and inclusive growth.
Micro finance, SHGs, SDGs, financial inclusion, economic development