Q1. What is Self-Help Groups (SHGs) / Explain how such groups are formed under SGSY.
- SHGs are small, homogeneous groups promoting thrift, internal lending, and mutual support.
- SGSY is an anti-poverty scheme focusing on SHGs for self-employment and micro-enterprises.
- SHG formation under SGSY involves mobilization, capacity building, and regular savings.
- Revolving Fund (RF) is a government grant to SHGs, augmenting their internal lending capacity.
Answer: Self-Help Groups (SHGs) are an essential component of poverty alleviation strategies, particularly in rural India. They represent a fundamental shift towards community-based approaches to development and economic empowerment. An SHG is essentially a small, informal association of people, typically from similar socio-economic backgrounds and often women, who come together voluntarily. Their primary purpose is to pool their savings, provide mutual support, and address common social and economic ...