Impact of Self-Help Groups on Economic Development of Empowered Rural Women (An Empirical Study with Special Reference to Sivagangai District of Tamil Nadu)

Microfinance through women's self-help groups (SHGs) is a considerable medium of poverty mitigation and empowerment of women. SHGs formed by women in different places have proved that they could certainly bring about a change in the mindset of the very conservative and tradition-bound illiterate women in rural areas. The concept of group formation is the best strategy to enlighten women and provide necessary mental courage for self-employment. This article makes a strong case for SHGs as a new development paradigm for bringing about economic development and gender equity among rural women in India by creating self-employment opportunities through microcredit. The study is based on the premise that poor women can internalise production possibilities in groups only. They are better equipped to conquer the harmful social stress and gender biases operating against them through group identity and movement. Conversely, the relationship of credit admittance to self-employment is not involuntary but depends on different factors.