Spread of Self Help Group Movement in Haryana (An Indian State): Review of Developments and Way Forward

The Self Help Groups (SHGs) have proved to be a very successful instrument of economic development, women's empowerment and social change in the southern states of India over the last two and half decades. The SHG movement has connected millions of poor people, especially women, to financial and banking services, and more importantly it has helped to create healthy financial habits and unleash entrepreneurial talent and livelihood activities. However, the states in the Northern part of India, especially Haryana, seem to have remained largely untouched by this movement.

This paper shows that the relatively lower level of poverty in the state is not the main reason for the poor take-off of this movement. Analyzing the survey results conducted in four select districts of Haryana, the paper sheds light on unique socio-economic dynamics which prevail in the state and restrict the SHG movement. Based on the survey findings, the authors conclude that the SHG movement in Haryana is trapped in a vicious circle of traditional societal structure, poor execution of SHG programs by different agencies, and lack of alternative economic enterprises and activities in the rural economy for disadvantaged groups.

Building on the accumulated experience and consultation with SHG members and survey findings, the paper suggests a way forward for the SHG movement in the state.