Women Empowerment and Micro Finance in India

Abstract

Empowerment of women in rural India is one of the important issues that need to be concentrated in a developing country like India. In the planning process it was projected that women will equally benefit along with men in all the development. The ninth plan document recognizes that inspire of development measures and constitutional legal guarantees- women have lagged behind in so many sectors. Mahatma Gandhi states that the position of women in the society is an index of its civilization. Train a man and you train an individual, Train a women and you build a nation‖. In order to work on the same lines Microfinance started in India in 1974 in Gujarat with Shri Mahila SEWA (Self Employed Women's Association) Sahakari Bank. This Microfinance later evolved in the early 1980s around the concept of informal Self-Help Groups (SHGs). These groups in rural areas are working very effectively in reducing poverty, empowering women and creating awareness which ultimately results in sustainable development of the nation. Over the years, government and non-government organizations have made various efforts to promote women empowerment. It has been accredited internationally as the modern tool to fight poverty and for rural development. Self Help Groups (SHGs) could be defined as the organized forum of people which is planned, shaped and structured by the people themselves to attain present/pre-identified goals and purposes. The concept of SHGs moulds women as a responsible citizen of the country with social and economic status. It leads women to develop the habit of raising loans, form savings, and inculcate a sense of belongingness, habit of thrift and discipline among themselves. Women belonging to lowest strata of the society are getting habituated to savings and paved the way for decision making power in the family. Empowering women puts the spotlight on education and employment which are crucial components for the sustainable development. Definitely there is improvement in psychological well being and social empowerment among rural women as a result of participating in micro finance through SHG program.