Role of Self-Help Groups in Agriculture and Sustainable Development in India

Abstract

Self-Help Groups (SHGs) have emerged as vital instruments for rural transformation in India by fostering collective self-reliance, social inclusion, and sustainable livelihood development. Originating from grassroots initiatives and institutionalized through the NABARD-linked microfinance movement, SHGs have empowered millions of rural households, especially women, through credit access, entrepreneurship, and community participation. This study explores the multifaceted role of SHGs in enhancing agricultural productivity, technology adoption, input accessibility, and market linkages while promoting environmental sustainability and climate resilience. The findings reveal that SHG participation significantly improves income diversification, soil and water management, crop rotation, and biodiversity conservation, aligning with national priorities such as the National Rural Livelihoods Mission (NRLM) and the Sustainable Development Goals (SDGs). Moreover, SHGs have contributed to women’s empowerment, improved decision-making, and strengthened social capital in rural communities. Despite persistent financial and institutional challenges, the SHG model remains a cornerstone for achieving inclusive growth and sustainable agricultural development in India.