Women’s Self-help Groups (SHG) in India: A Critical Review of Their Impact and Pathways toward Gender Equity

Abstract

Background: Women’s self-help groups (SHGs) have become one of India’s most visible policy instruments for tackling gendered poverty and exclusion. Since the 1990s, SHG–bank linkage programmes and the National Rural Livelihoods Mission (NRLM) have scaled SHGs from scattered NGO experiments to a nationwide architecture that reaches tens of millions of women. A large empirical literature documents positive effects on savings behaviour, access to credit, social capital and certain dimensions of women’s agency, yet concerns remain about uneven coverage, modest transformative impact on gender norms, and risks of over-indebtedness and elite capture. Aim: This review synthesises recent evidence on SHGs as catalysts for gender equity in India, critically examining where they succeed, where they fall short, and how they might be redesigned for a more transformative agenda. Method and Findings: Drawing on quantitative and qualitative studies, impact evaluations and systematic reviews from diverse Indian states, the paper argues that SHGs work best as multi-dimensional platforms that combine financial inclusion with livelihoods support, political voice and gender-transformative content. However, gains are highly heterogeneous by caste, class, region and programme design. New pathways—such as integrating agricultural extension and nutrition, strengthening federated structures, and leveraging digital technologies—offer opportunities to deepen impact but also raise new equity and safeguarding challenges. Conclusion: The review concludes that SHGs can be powerful, but not sufficient, instruments for gender equity and must be embedded within broader efforts to redistribute resources, recognise care work and renegotiate power within households, markets and local states.

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