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Women Empowerment Through SHGs – A Case Study of

Jharkhand State in India

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Journal of Soc. & Psy. Sci. 2011 Volume 4 (1): 3-15

Available at: www.jspsciences.org

Women Empowerment Through SHGs – A Case Study

of Jharkhand State in India

*Soumitro Chakravarty and **A.N. Jha

*Faculty Member, Deptt. of Mgmt., BITEC, Lalpur
**Professor Deptt. of Mgmt & Centre Director, BITEC, Lalpur
E-mail address: soumitrochakravarty123@gmail.com

Abstract

The present paper tries to understand the role of SHGs and their impact upon the
women empowerment process in the state of Jharkhand. We have relied heavily
upon secondary data to gather information. The working process of SHGs, their
achievements, operational difficulties etc are analyzed and finally suggestions are
put forward to enhance & strengthen the role of SHGs in women empowerment.

Keywords: SHGs, Women Empowerment, SHGs, Micro Finance, NGOs

© Oxford Mosaic Publications 2010. All rights reserved ISSN 1756-7483 (print) 1756-7491 (online)
Journal of Soc. & Psych. Sci. (2011) Vol.4 (1): 3-15 Soumitro Chakravarty and A.N. Jha 4

The total world population comprises of 50% women. As far as the

social status of women is concerned it has been seen that in the Indian
context in most states women are not treated as equal to men in most
places. This gender discrimination is very deep rooted and it adversely
affects the moral of the women population in the country as a whole.
The need of the hour is to address this issue with full sincerity and
ensure that women are provided with the necessary rights which could
enable them to take up decision making role and thereby play a
significant part in the society they reside in. Empowering may be
understood as enabling people, especially women to acquire and
possess power resources, in order to make decision on their own or
resist decisions that are made by others that affect them.

Self-help group is a method of organizing the poor people and the

marginalized to come together to solve their individual problem. The
SHG method is used by the government, NGOs and others worldwide.
One estimate places the total number of people in self-help support
groups at 20 million worldwide.

In the past couple of decades SHGs in India have emerged as a very

powerful tool for poverty alleviation and empowerment of women.

INTRODUCTION

Empowerment is a process of awareness and capacity building leading

to greater participation, to greater decision making power and control
and transformative action. Empowerment of women signifies
harnessing women power by conscientising their tremendous potential
and encouraging them to work towards attaining a dignified and
satisfying way of life through confidence and competence as person
with self-respect, rights and responsibilities. Empowerment as a
concept was introduced at the International Women’s Conference at
Nairobi in 1985. The conference defined empowerment as “A

© Oxford Mosaic Publications 2011. All rights reserved ISSN 1756-7483 (print) 1756-7491 (online)
redistribution of social power and control of resources in favour of
women. Empowerment is a multi-faceted process which encompasses

many aspects i.e. enhancing awareness, increasing access to resources

of economic, social and political etc.” In recent years women
empowerment has become a subject of great concern for the nations
all over the world especially in poor and developing countries. The
impact of globalization is seen eventually on position of women in
some form or other in most of the developing countries with the
variation of degree. The United Nations has also strived hard in an
incredible way to draw the due attention of the World Community on
this issue in the past years.

SHGs AS A MOTIVATIONAL TOOL TO EMPOWER WOMEN

One has to believe that the progress of any nation is inevitably linked
with social and economical plight of women in that particular country.
For concrete results, we have to assert and act with our full might and
what is needed most. Empowerment by way of participation in SHG
can bring enviable changes and enhancement in the living conditions
of women in poor and developing nations.. Self Help Group (SHG) is
a process by which a group of 10 – 20 women with common
objectives are facilitated to come together voluntarily to participate in
the development activities such as saving, credit and income
generation thereby ensuring economic independence. The principles
underlying the SHGs are financing the poorest of the poor, and
achieving holistic empowerment. SHG phenomenon certainly brings
group consciousness among women, sense of belonging, adequate self
confidence. What she cannot achieve as an individual, can accomplish
as a member of group with sufficient understanding about her own
rights, privileges, roles and responsibilities as a dignified member of
society in par with man. When she becomes a member of SHG, her
sense of public participation, enlarged horizon of social activities,
high self-esteem, self-respect and fulfillment in life expands and
enhances the quality of status of women as participants, decision
makers and beneficiaries in the democratic, economic social and
cultural spheres of life. Thus undoubtedly SHG can be an effective
instrument to empower women socially and economically by which

the implication on the overall development of women is indisputably

possible particularly for a country like India wherein still large
segment of women population are underprivileged, illiterate, exploited
and deprived of basic rights of social and economic spectrum.

The experiences of SHGs in many countries have been proving great

success as an effective strategy and approach in recent years. Group-
oriented efforts in the form of Micro-credit groups in different
countries of Latin America, Africa and Asia are examples of current
self-help efforts. The grameen groups in Bangladesh, Local self-help
development efforts - harambee (Thomas, 1985) in Kenya , Tontines
or Hui with 10 to15 members involved in financial activities through
cash or kind in Vietnam, self help efforts through credit unions,
fishermen groups, village-based banks, irrigation groups etc (Gaonkar,
2004) in Indonesia , the self-help groups (SHGs) in countries like
Thailand, Nepal, and Sri Lanka and India are successfully proving
forms of micro-credit groups or SHGs.

THE PROBLEMS OF WOMEN EMPOWERMENT IN INDIA

The Constitution of India guarantees equality, liberty and dignity to

the women of India. The Fundamental Rights, The Directive
principles of State Policy and Fundamental Duties etc virtually assure
equal status to women and provide special protection. After
independence, a gamut of laws have been passed and some have been
altered so as to award equal share to women in property as well as to
eradicate some of the injustices meted out to women. However there
are many shortcomings and ambiguities in the enforcement of laws.
As a result of this, the evil of dowry continues in spite of the Dowry
Prohibition Act of 1961. Sati Prevention Act was passed in 1987 but
glorification of sati continues in the state of Rajasthan. Immoral
Traffic Prevention Act was passed in 1956 but does not prohibit
prostitution altogether. Medical Termination of Pregnancy Act of
1975 has led to amniocentesis and female foeticide . It is believed
that 78,000 female foeticide are done every year in India.. Indecent

Representation of women’s Protection Act was passed in 1986 but

the media still continues to project women as sex objects . Suitable
changes in the Indian Penal code, Code of Criminal Procedures and
the Indian Evidence Act have been made especially for the offence of
rape, but judicial process and perception continue to be heavily
weighed against victims of rape. Some of the labour laws are never
enforced and some enforced in a mutilated form. In spite of the Equal
Remuneration Act 1976, there is discrimination in promotion, training
and transfer on the basis of sex. By and large undoubtedly more than
six decades of efforts since Independence by the government and
spell of fights and struggle under the immense pressure of women
lib activists in the country have indeed brought certain changes in
social, psychological and economic and political spheres of life.
Consequently it becomes an imperative need to look into problems
and issues and their implications upon underprivileged women thereby
to explore appropriate strategies and approaches uplifting women in
all spheres of life in India.

THE EVOLUTION OF SHGs IN INDIA

The Self Help Group (SHG) in India has come a long way, since its
inception in 1992. The spread of SHGs in India has been phenomenal.
It has made dramatic progress from 500 groups in 1992 (Titus 2002)
to some 16, 18,456 groups that have taken loans from banks. About
24.25 million poor households have gained access to formal banking
system through SHG-bank linkage programme and 90% of these
groups are only women groups (NABARD2005) The
NABARD(2006) homepage declares that more than 400 women join
the SHG movement every hour and an NGO joins the Micro-Finance
Programme every day. There are also agencies which provide bulk
funds to the system through NGOs. Thus organizations engaged in
micro finance activities in India may be categorized as Wholesalers,

NGOs supporting, SHG Federations and NGOs directly retailing

credit borrowers or groups of borrower. The spread of the SHGs is
highly concentrated in the southern part of the country with very few
in the north and the east. Over half a million SHGs have been linked
to banks over the years but a handful of States, mostly in South India,
account for almost 60% of this figure (Harper 2002b, NABARD
2005:41). Andhra Pradesh has over 42%, Tamil Nadu and Uttar
Pradesh have 12% and 11% respectively, and Karnataka has about 9%
of the total SHGs (Chakrabarti, 2004). Since the advent of SHG in
India, it’s growth rate has been very low in the states of Rajasthan,
Bihar, Utter Pradesh , Madhya Pradesh , Orissa and union territory of
Andaman Nicobar Islands where the status of women is still very
backward and pathetic.

The SHGs have taken the form of a movement for women’s social
development in India. In fact as a strategy for women’s development,
they have arisen out of the perceived problem of women’s lack of
access to resources at both the household and the village level.
Women’s development has gone beyond the economic dimension and
place emphasis on issues relating to equality, autonomy and self
reliance at the individual level and on solidarity of the community (of
women) at the group level (Hardiman & Midgley 1982, Dube 1988,
Pieterse 2001). As a group-oriented model, SHGs in India is a
mechanism for women’s development to bring in individual and
collective empowerment through improvement in both ‘condition’ and
‘position’ of women. Women are organized as collectives towards the
overall goal of achieving gender equality as well as sustainable,
Comprehensive community development (Purushothaman1998:80).
Unlike the self-help projects in Kenya, the SHGs in India are
primarily micro-credit groups and the direct objective of micro-credit
is to improve the ‘condition’ of women. Women in India are
mobilized to protest against domestic violence, legal discrimination,
rising prices, dowry, Prohibition of liquor, rape, child marriage,
female infanticide, sexual abuse, domestic violence, male alcoholism
and so on. In dealing with women’s strategic interests, women
participate in collective activities through SHGs to address these
strategic needs. In the process, it aims to empower women with

several forms of power. Hence a study on Empowerment of women

through SHGs in Jharkhand.

A STUDY ON EMPOWERMENT OF WOMEN THROUGH

SHGs IN JHARKHAND

The objectives of the study: The main objectives are a) to understand

and analyze psychological, social and economical benefits accrued by
women participating in SHGs and b) to explore the merits of SHGs as
strategy and approach to empower women in India.

Nature of the study: The study is a descriptive in nature as it has

attempted to describe the psychological, social and economic benefits
enjoyed by the members by participating in self help groups.

Data Base: The information collected relies heavily on secondary data

collected from text books, reports, websites etc. The information
collected by 50 respondents by the researcher belonging to various
SHGs in Jharkhand constitutes the primary data.

THE MAIN FINDINGS OF THE STUDY

Psychological Empowerment: The participation of women in SHGs

enables them to acquire inimitable psychological benefits to rise up
psychologically powerful which is an essence for women
empowerment in any socio-cultural and economic environment and
situations. The respondents of the present study have accrued various
psychological benefits including self awareness, high self esteem, self
confidence and courage, understanding about own rights, privileges,
roles and responsibilities, power of self determination , Positive
attitude , Risk taking ability , Power to face challenges of daily life,

gaining knowledge and new ideas and skills, great relief from mental
stress and anxiety, leading a happy and satisfied life and so on. Out of
100 respondents 75 percent had got self awareness gaining adequate
understanding about strength and weakness of self to reasonable
extent. About 82 percent had developed a high level of self –Esteem.
69 percent of the respondents had obtained enough Self – Confidence
and Courage. SHGs had given enough exposure for about 89 percent
of the respondents to understand about their own rights, previleges,
roles and responsibilities. The power of self-determination had
tremendously improved among 70 percent of respondents. The
positive attitude about life and society had come to more than 65
percent of the respondents. The risk taking ability had developed
among 55 percent of respondents. The SHGs had enhanced the power
to face challenges of daily life for 63 percent of the respondents.
Through participation in SHGs 67 percent had got General
Knowledge, New ideas and communication skills. The four fifth of the
respondents i.e. 80 percent had great relief from mental stress and
anxiety due to group moral support and comfort. The majority of the
respondents (73 percent) were able to lead happy and satisfied life
due to participation in SHGs

Social Empowerment: The women who participate in SHGs garner a

lot of social benefits including awareness about society and existing
social problems, good recognition and image in the family and
community, role in family decision making on important matters, plan
and promote better education for their children, Able to take care of
health for children and aged. participation in public and political life,
chance to serve the community including fighting for the basic
amenities and welfare needs of village community such as safe
drinking water, street light, public sanitation etc, chance to help
weaker section like aged and differently abled, able to resist social
evils like dowry, violence against women, gender discrimination and
other social injustice in the family as well community , sense of
responsibility for collective action and solidarity etc. Out of 100
respondents 83 percent got awareness about their own community and

society in general. About 79 percent enjoyed considerable recognition

and good image in the family and community after joining SHGs.
Nearly 65 percent had the privilege to participate in family decision
making process on important matters. 57 percent of the respondents
were able to contribute for the education of their children. More than
60 percent of the respondents were able to take care of health of the
children and aged in the family. For half of the respondents SHGs
provided opportunities to participate in public and political life. 75
percent of the women had the chance to serve their own community
including fighting for the basic amenities and welfare needs of village
community such as safe drinking water, street light, public sanitation
etc. One fourth of the women (25 percent) got chance to help aged and
disabled in the community. More than two third (72 percent) able to
resist social evils like dowry, violence against women, gender
discrimination and other social injustice in the family as well
community. About 60 percent of the respondents felt that they had
sense of responsibility for solidarity and collective action.

Economic Empowerment: The members of SHGs are really

privileged to enjoy many economic benefits including saving,
liberation from debt trap, economic independence , economic skills
for income generation, able to contribute for education of children ,
able to meet the healthcare needs, accumulate economic assets
including house, land , jewels other valuable things, economically
strong to meet unexpected financial challenges and so on. All the
respondents were able to save reasonable amount for safety and
security. For more than 60 percent of the respondents were able to
liberate their families from the debt trap. About 71 percent of them
attained economic independence to greater extent and able to
contribute towards prosperity of the family, More than half of the
respondents (58 percent) had acquired some economic skills or other
with help of SHGs for income generation or additional income, 69
percent of the respondents were in a position to contribute for
education of children and healthcare needs of the family with help of
saving, 38 percent had accumulated economic assets including house,

land, jewels other valuable things. Majority of the respondents (78

percent) felt economically strong enough to meet unexpected financial
challenges being as members of SHGs with help of saving.

THE IMPLICATIONS OF THE STUDY

The outcome of the study clearly indicates that the majority of women
who constituted as respondents for the present study, being members
of SHGs have benefitted considerably in terms of psychological,
social and economic development. Women participation in SHG have
obviously created tremendous impact upon the life pattern and style of
poor women especially in rural areas and empowered them at various
level not only as individual also as member of family, member of
community and society as whole. It can be concluded that the SHG
strategy is undoubtedly a convivial experiment for women
empowerment in India as it opens up flood gates of opportunities to
enhance capacities and capabilities in their development and growth in
total perspective. It is evident from the study undertaken by the
researcher that women particularly in rural, tribal and slum areas can
be empowered psychologically, socially and economically with the
concerted application of SHG as an effective strategy and doable
approach. It is also understood from the study that Indian women have
adequate potential sparks which can be well fanned into flames with
necessary guidance and training through SHGs thereby bringing them
to live in par with men in all spheres of human life in our society.
Therefore as a group-oriented model, SHGs in India can be evolved as
mechanism or movement for women’s development to bring in
individual and collective empowerment through improvement in both
‘condition’ and ‘position’ of women in India or else where the plight
of women is miserable and pitiable.

Suggestions and Recommendations

The following suggestions and recommendations have been made

based on the findings of the study and also in the interest of welfare
women of India in general:

The Concerted efforts should be made to form SHGs for women as

much as possible in rural and tribal villages and slums to uplift
womenfolk particularly in very backward states and Union territories
by government agencies, Educational Institutions, NGOs and other
service organizations of civil societies.

Government both state and Central should work hand- in -hand to

promote the concept of SHG without political biasness and selfish
motives taking into account the welfare of the womenfolk in general
by incorporating as an important strategy for women empowerment in
the national policy and allocating more grant in the budget and
developing effective implementing machinery.

NGOs, Educational Institutions and Social Service organizations etc

engaged in the works of promotion and development of SHGs should
be encouraged at all levels with sufficient financial grants and
appreciation and awards

Conducive atmosphere and harmonious network should be established

among Government Agencies, Banks, Ngos, Other service
organizations for effective functioning of SHGs to avoid overlapping
and duplications.

Banks and other financial institutions should work with open-mind

and service motives to promote SHG among women particularly
downtrodden communities like scheduled caste and scheduled tribes,
marginalized groups in order bring them into main stream of
development and growth of India

SHGs should be strictly encouraged to undertake economic

activities/income generating activities for sustainable income to the
group.

SHG can be encouraged to form cooperative societies to promote

Village, Cottage and Other industries for which raw materials and
resources available abundantly in and around rural and tribal areas

SHG may be encouraged to involve in manufacturing products such as

electronic and electrical goods, readymade garments, handicrafts to
fetch market in Third –World countries ,European countries, USA and
Latin American countries

In order to promote SHGs for women empowerment Mass media such

New papers, TV , radio etc can play a significant role by creating
awareness in the public and also among women about the merits of
SHGs by publishing success stories of SHGs ,case studies,
achievement of NGOs and Government efforts etc

References

Tandon.R.K. 1998, Women in India , Indian publishers &

distributors, Delhi,1998

Agarwal,C.M, 2001, Indian Women , India Publishers &

Distributors, Delhi

Saraswathi Mishra, Status of Indian women , Gyan Publishing

House ,
New Delhi, 2002
Journal of Soc. & Psych. Sci. (2011) Vol.4 (1): 3-15 Soumitro Chakravarty and A.N. Jha 15

Karl,Marilee,1995,Women and Empowerment; Ned Books and UN

Non –Governmental service

UNICEF, ,1994,Gender Equality and Empowerment of Women

and Girls : policy Review , UNICEF Programme Committee
Women For Women,1995,Empowerment of Women, Nairobi(1985)
Dhaka women For Women.

Joshi,2004,,Women Empowerment : Myth and Reality Akhansha

Publishing House, New DelhiComments to Ashtadhyayi
3.3.21 and 4.1.14 by Patanjali

R. C. Majumdar and A. D. Pusalker (editors): The history and culture

of the Indian people. Volume I, The Vedic age. Bombay:
Bharatiya Vidya Bhavan 1951, p.394

© Oxford Mosaic Publications 2011. All rights reserved ISSN 1756-7483 (print) 1756-7491 (online)
 Journal of Soc. & Psych. Sci. (2011) Vol.4 (1): 3-15 Soumitro Chakravarty and A.N. Jha 16
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