An Econometric Analysis of The Role of Self Help Groups in Poverty Elimination and Women Empowerment

The self-help groups movement emerged as an important strategy for achieving financial inclusion, contributing to inclusive growth, and generating social capital in order to address larger issues like poverty eradication and women empowerment. SHGs provide micro loans to women member, which helps them to become self-dependent. It is also helped to mobilize savings making them create their status in society and it has helped to slowly eliminate poverty and make women self-dependent. This study highlighted the role of SHGs in poverty eradication and women empowerment. The present study made use of the secondary data from the Planning Commission Reports, NABARD annual reports and State of the Sector Report 2013. The data collected for the research are analyzed with the help of simple statistical techniques such as AGR, CAGR and percentages. Multiple Regression analysis, Paired test and ANOVA test has been used to test the hypotheses. The study shows there was enormous increase in the amount of subsidy given by government to SHGs. With that, the annual repayment of the loan also shows positive trend. Further, the study revealed that SHGs help the deprived section of people to come out from the poverty trap and through that social and economic empowerment.