Role of Self-help Groups in the Economic Development of Rural Areas of Assam with reference to Chaygaon Block of Kamrup District, Assam, India

  • Shikha Gupta Assistant Professor, Department of Commerce, Pune Institute of Business Management, Guwahati, Assam, India
Keywords: Economic development, Rural areas, Rural livelihood, Self-help Groups.


Self-help Groups, also known as support groups, are groups of people who provide mutual support to each other in times of need. In the self-help groups, the members share a common problem and work for a common purpose. In India, at least more than half of the population lives in rural areas. So, we can ultimately say that if the rural areas, i.e. the villages, are developed, it will lead to the country’s development. Thus, rural people must be employed, earn their livelihood, and contribute a bit to the national income. In Assam, the State Institute of Rural Development (SIRD), situated in the Khanapara area of Guwahati, is the most important institute who looks after and is engaged in developing the Self-help Groups in the rural area with the help of providing various training and awareness program. In India, almost more than 60% of the Indian population cannot get formal financial services. Women’s self-help movement has emerged as an important strategy for achieving financial inclusion, contributing to inclusive growth, and generating social capital in providing the most effective financial inclusion instrument. SHG’s play a vital role in developing the rural areas and uplift the livelihood of the rural people. They mainly work by collecting funds from the group members, utilizing them for various productive purposes, and lending them to others who need them. The present study is done by the researcher mainly to study the role and importance of SHG’s in the economic development of the rural areas of Assam and to know about the government initiatives in promoting the SHG’s for rural livelihood.