The transformation of rural women from beneficiaries to business leaders under the Modi government’s SHG-centered policies is a socio-economic shift for a vision of Viksit Bharat. With structural support, private partnerships, and visionary programs like DAY-NRLM, India is ensuring that the Ease of Doing Business doesn’t stop at metros, but reaches every mahila mandal and gram panchayat. The next unicorns may not emerge from Silicon Valley or Gurgaon, but from the collective strength of empowered Didis, redefining enterprise in their own language, land, and leadership.
Over the last decade, the Government of India, under the leadership of Prime Minister Narendra Modi, has redefined the concept of poverty alleviation. It is no longer viewed merely as welfare, but as a pathway to wealth creation. Nowhere is this more evident than in the transformation of Self-Help Groups (SHGs) under the Deendayal Antyodaya Yojana, National Rural Livelihoods Mission (DAY-NRLM).
What began as a community-based model of savings and credit has evolved into a massive rural entrepreneurship movement. As of 2024, more than 9.5 crore women have been mobilized into SHGs. From small-scale producers to enterprise leaders, SHG women, now popularly known as Lakhpati Didis, are emerging as key drivers of economic inclusion, local production, and sustainable development. The Ease of Doing Business (EoDB) for SHG members is now being reimagined. The focus has shifted from urban regulatory frameworks to rural grassroots realities. This includes improving market access, facilitating credit linkage, building brand identity, enhancing digital literacy, and ensuring strong convergence with the private sector.
Modi Government’s Enterprise-Led Poverty Reduction
In 2022, Prime Minister Narendra Modi articulated a transformative vision when he declared that “every village should have its own Lakhpati Didis.” This idea has become a symbol of self-reliance and rural prosperity. The government’s plan, announced in the Union Budget 2024, to create two crore Lakhpati Didis by the year 2027 reflects a significant policy shift. It moves away from a model of subsidy-based support toward one that focuses on entrepreneurship-driven empowerment.
Reinforcing this vision, the Prime Minister stated in his Mann Ki Baat address in January 2023, “We are not just fighting poverty, we are investing in capability. The SHG women are India’s new economic leaders.” These words reflect a deep commitment to building a development model in which rural women are not just aided, but elevated as central contributors to India’s economic future. Under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), the scope of intervention has expanded. The focus now includes formalizing rural enterprises through registration, tax compliance, and improved business practices. It also emphasizes the creation of business-friendly ecosystems that provide easier credit access, digital inclusion, and mentorship.
DAY-NRLM is further working to establish collective supply chains, unified branding, and logistics support to help SHG products compete in larger markets. Efforts are underway to integrate SHG members into public procurement systems and even international trade networks. This comprehensive approach empowers women at the grassroots to become producers, entrepreneurs, and exporters, driving inclusive and sustainable growth.
From Informal Work to Structured Business: The Numbers Tell the Story
The transformation of Self-Help Groups (SHGs) in India over the past decade has been both quantitative and qualitative. Under the leadership of Prime Minister Narendra Modi, the SHG ecosystem has transitioned from an informal community movement to a structured and scalable business network that is contributing meaningfully to India’s rural economy.
In 2014, the total number of women associated with SHGs stood at approximately 2.9 crore. By June 2024, this figure had more than tripled, reaching a remarkable 9.5 crore women across the country. This massive mobilization represents one of the largest gender-centric economic movements in the world, turning rural households into hubs of productivity and entrepreneurship. Credit access has also seen a significant leap. In 2014, the total bank credit linkage for SHGs was around ₹25,000 crore. By 2024, it had expanded sevenfold, with SHGs availing over ₹1.75 lakh crore in cumulative bank credit. This financial deepening has enabled SHG members to move beyond subsistence-level income activities into structured micro-enterprises.
Back in 2014, the number of SHGs actively running micro-enterprises was less than one lakh. Today, more than 5.2 lakh SHGs are engaged in enterprise development across diverse sectors such as food processing, textiles, handicrafts, organic farming, and services. These enterprises are not only supporting local economies but are also generating employment and enhancing rural consumption. Product visibility and market access have similarly improved. Prior to 2014, there was no centralized platform like SARAS Gallery to showcase SHG products. By 2024, over 3,500 unique product lines have been catalogued and promoted through SARAS outlets and exhibitions, offering SHG members a channel to reach urban and institutional buyers.
Digital inclusion has been another hallmark of this transformation. In 2014, digital onboarding of SHGs for e-commerce was negligible. Today, more than 10,000 SHGs have an active presence on platforms such as Government eMarketplace (GeM), Flipkart, Amazon, and the Open Network for Digital Commerce (ONDC). This digital leap has given rural women access to national and even global consumer bases, elevating their confidence and income levels. These numbers, backed by reports from the Ministry of Rural Development and data cited in the 2024–25 Budget Speech, offer compelling evidence of how the government has shifted the rural development paradigm. What was once a savings-led informal collective is now a rising pillar of India’s economy—structured, financed, connected, and future-ready.
Breaking Barriers: Addressing Challenges in Doing Business for SHGs
Despite the remarkable rise of Self-Help Group (SHG) enterprises across India, several persistent challenges continue to limit their growth potential. These challenges were extensively discussed during a high-level 360-degree consultation convened by the Ministry of Rural Development (MoRD) in July 2024 in New Delhi. The meeting brought together a diverse coalition of stakeholders from both the public and private sectors. Participants included leading institutions and corporations such as India Post, Flipkart, Fab India, ITC Limited, National Institute of Fashion Technology (NIFT), Bill and Melinda Gates Foundation (BMGF), Women on Wings, Rangsutra, Transform Rural India (TRI), Reliance Foundation, and others with extensive grassroots experience.
One of the foremost issues identified was the absence of a standardized and SHG-friendly quality certification mechanism. While SHGs produce a wide variety of goods, the lack of quality assurance systems often makes it difficult for their products to gain the trust of institutional buyers or scale up to formal retail networks. The challenge is to introduce quality protocols that are rigorous yet accessible, without overwhelming the rural producers with complex compliance demands. Another major concern raised was the difficulty SHGs face in scaling production while maintaining community ownership and participatory governance. The very strength of SHGs lies in their decentralized, inclusive model, but this often becomes a constraint when bulk orders or consistent supply timelines are required by corporate buyers. A balance needs to be struck between preserving the community fabric and professionalizing operations.
Digital inclusion emerged as a third critical challenge. Many SHG members have limited digital literacy and minimal exposure to customer relationship management tools, e-commerce interfaces, and data analytics. This digital divide prevents them from maximizing the benefits of selling through online platforms like Flipkart, Amazon, or ONDC, despite the government’s efforts to onboard them. The consultation also highlighted infrastructure gaps, particularly in rural areas. Many SHGs struggle with inadequate facilities for modern packaging, cold storage, warehousing, and last-mile logistics. Without these critical enablers, even high-quality products fail to reach markets in a timely and cost-effective manner.
Finally, participants pointed out the lack of a cohesive national brand identity for SHG products. While initiatives like SARAS Gallery have provided a starting point, the absence of a unified branding framework makes it difficult to communicate the authenticity, social impact, and quality of SHG-made goods to urban and global consumers. The consultation concluded with the shared understanding that these barriers are not insurmountable. With the right convergence of policy support, private sector partnership, and capacity building, SHG entrepreneurs can overcome these constraints and play a defining role in the journey toward a self-reliant and inclusive Viksit Bharat.
Policy Innovations Enabling Ease of Doing Business for SHGs
The Modi government has introduced a comprehensive set of reforms aimed at enhancing the Ease of Doing Business (EoDB) for Self-Help Groups (SHGs), turning them into vibrant engines of rural entrepreneurship. These reforms rest on three key pillars: institutional convergence, digital integration, and market-oriented solutions. Collectively, they are transforming the landscape in which SHG women operate, providing them with tools to compete in national and even global markets.
a) SARAS and National SHG Branding: A cornerstone of this transformation is the institutionalization of SARAS Gallery and the SARAS Aajeevika Melas. These flagship platforms are now facilitating pan-India visibility and sales opportunities for SHG products. Beyond these events, the government is working to create a national SHG brand architecture. This includes efforts to standardize packaging, implement barcoding systems, establish quality control protocols, and craft compelling product narratives that communicate the authenticity and impact of rural entrepreneurship to wider markets.
b) Public Procurement Reform: Public procurement reform is another powerful lever of change. SHGs have been granted eligibility to sell directly on the Government e-Marketplace (GeM) platform under reserved categories, providing a consistent and transparent procurement channel. As of 2024, over 10,000 SHGs are actively selling on GeM, supported by special onboarding mechanisms facilitated by the National Rural Livelihoods Mission (NRLM). This has enabled SHG enterprises to access government buyers without middlemen and build consistent revenue streams.
c) Digital Infrastructure and E-commerce: Digital empowerment is being advanced through integration with flagship schemes like PM Vishwakarma and Digital India. SHGs are now being trained and connected to major e-commerce platforms such as ONDC, Flipkart Samarth, and Amazon Saheli. Innovations such as digital customer relationship management tools, QR code-based product tagging, and real-time inventory dashboards are being piloted to help SHGs manage operations efficiently and professionally. These tools are bridging the digital divide and enabling rural entrepreneurs to tap into modern trade networks.
d) Credit and Capital Linkage: Credit and skill development remain foundational to this ecosystem. SHGs can now avail of collateral-free loans up to ₹20 lakh, with interest subvention benefits reaching up to 5 percent under the SHG Credit Scheme. Additionally, financial linkages are being reinforced through convergence with schemes like MUDRA Loans and the Prime Minister’s Employment Generation Programme (PMEGP). On the skilling front, the Ministry of Skill Development and Entrepreneurship (MSDE) has collaborated with NRLM for targeted capacity building under programs like SANKALP and STRIVE. Partnerships with private sector players such as DeHaat, Shahi Exports, and JayKay Enterprises are also bringing real-world mentorship to SHGs, helping them align products with market needs and ensure long-term sustainability.
SHGs and Viksit Bharat: The Macro Vision
The transformation of Self-Help Groups (SHGs) into structured rural enterprises is a central pillar of India’s development strategy. It aligns with the national vision of Viksit Bharat @2047, which aspires to create a self-reliant, globally competitive, and inclusive economy. SHGs are no longer just support groups. They are becoming strategic economic units contributing to national productivity, rural employment, and community-led development.
The government’s intent is to ensure that every woman entrepreneur becomes a producer, innovator, and decision-maker. From home-based food processing to textile production, from running digital kiosks to managing logistics, SHG women are taking ownership of their economic futures. They are shifting from being passive recipients of schemes to active stakeholders in India’s growth story.
Rural economies are also being equipped with digital tools, financial literacy, and e-commerce access. Through integrations with platforms like Government e-Marketplace (GeM), Open Network for Digital Commerce (ONDC), Amazon Saheli, and Flipkart Samarth, SHG enterprises are connecting directly with buyers across the country. These digital enablers reduce dependence on middlemen and enhance price realization for rural producers.
The broader goal is to embed locally made goods into global value chains. With support for packaging, barcoding, branding, and certification, SHG products are being readied for urban and international markets. This means that handcrafted baskets from tribal belts, millet-based snacks from rural kitchens, and eco-friendly garments are all gaining visibility on digital shelves and export catalogues.
Ms. Swati Sharma, Joint Secretary at the Ministry of Rural Development, summarized this shift during the July 2024 stakeholder consultation. She stated that SHGs are not just community groups but enterprise clusters of tomorrow. Empowering them is no longer viewed as charity or welfare. It is now recognized as economic nation-building, firmly placing SHGs at the heart of India’s journey towards becoming a developed nation by 2047.
The transformation of rural women from beneficiaries to business leaders under the Modi government’s SHG-centered policies is a socio-economic shift for a vision of Viksit Bharat. With structural support, private partnerships, and visionary programs like DAY-NRLM, India is ensuring that the Ease of Doing Business doesn’t stop at metros, but reaches every mahila mandal and gram panchayat. The next unicorns may not emerge from Silicon Valley or Gurgaon, but from the collective strength of empowered Didis, redefining enterprise in their own language, land, and leadership.
