A government summary of a 2025–26 NITI Aayog evaluation reports that average household income rose by 49% among the rural households it studied. The evaluation covered 2,206 households across 11 states and two Union Territories, according to the Ministry of Rural Development. That is a government-reported result from a particular evaluation—not a guarantee for every group or a figure directly comparable with older studies.
How do self-help groups help women in rural India?
A self-help group (SHG) is a local group of women that can organize savings, access credit and pursue livelihood activities collectively. Under India’s Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), SHGs are connected with banks, training, livelihood promotion, enterprise support and community institutions. Groups may also be linked through village organizations and federations. The Government of West Bengal’s DAY-NRLM description outlines this group-and-federation approach: DAY-NRLM program description.
The structure can help women reach financial services and support that may be harder to access individually. But forming a group or receiving a loan is only part of the process: a livelihood needs suitable financing, practical support and customers willing to buy what the enterprise produces.
Do women’s self-help groups increase household income?
Several evaluations report positive income findings, but their percentages describe different studies, comparisons and periods. They should not be read as a trend line or combined into one estimate.
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| Evaluation | Reported finding | How to interpret it |
|---|---|---|
| 2025–26 NITI Aayog evaluation, summarized by the Ministry of Rural Development in 2026 | Average household income increased by 49%. | The government summary says the evaluation covered 2,206 rural households in 11 states and two Union Territories. The figure is reported in the release; its precise causal interpretation and comparability with earlier estimates should not be overstated. Ministry summary. |
| 3ie DAY-NRLM impact evaluation, conducted in 2019–20 and summarized by the Ministry in 2025 | Income increased by 19% over baseline in treatment areas. | The summary describes coverage of nine states, about 27,000 respondents and 5,000 SHGs. This is a change-over-baseline finding, not the same comparison as the 2025–26 estimate. Ministry summary. |
| IRMA DAY-NRLM impact assessment, summarized by the Ministry in 2017 | Net income was 22% higher in covered than uncovered households, largely from enterprise income. | This older covered-versus-uncovered comparison comes from sampled states and a different assessment. Ministry summary. |
Other evidence cautions against assuming that every SHG intervention raises income. A 2013 World Bank working paper on a particular intervention among rural tribal women found no evidence that participation increased income, although it did find gains in other outcomes. Its result applies to that intervention, not all Indian SHGs: Desai and Joshi, World Bank Policy Research Working Paper 6547.
What financial and livelihood outcomes do members report?
Savings and borrowing
The Ministry’s summary of the 2019–20 3ie evaluation reports a 28% increase in household savings and a 20% reduction in reliance on informal loans. It also reports a 4% increase in secondary occupations. These are findings from that evaluation, not universal effects for every group. Read the Ministry summary.
In the 2025–26 evaluation summary, 34.0% of respondents who reported the purpose of their first loan said it was to establish livelihood activities, while 29.1% said it was to support existing livelihood activities. These percentages refer to respondents reporting first-loan purpose, not all SHG members. Read the Ministry summary.
Confidence and financial autonomy
The same 2025–26 government summary reports that 58% of respondents cited enhanced confidence, 52% improved access to income-generating opportunities and 46% the ability to manage banking transactions independently. These outcomes help explain why the value of SHGs is not captured by household income alone. Read the Ministry summary.
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What challenges do women’s self-help groups face?
Recent reporting on the 2026 evaluation describes barriers in implementation and local markets—not a failure of women’s collective action. According to The Indian Express, pressure to meet group-formation targets sometimes led to SHGs being formed quickly in villages with few viable enterprise opportunities. Members could be reluctant to borrow where demand for products was uncertain and repayment seemed risky. The report also describes limited support from village organizations, community resource persons and federations, as well as low access to higher-tier financing. The Indian Express report.
When market prospects are weak, a loan alone cannot make an enterprise viable. The same reporting says some revolving-fund support went toward immediate household needs. That can coexist with members reporting livelihood purposes for their first loans: the findings describe different purposes and experiences, not a single pattern for all members.
The article reports that, in the evaluation survey of 2,206 households across 11 states and two Union Territories, 74.6% reported access to revolving funds, 49.9% to a Community Investment Fund (CIF), 41.8% to bank loans and 3.8% to a Community Enterprise Fund (CEF). These are access figures as reported by The Indian Express; they do not establish that every group received the same support or that funds produced profitable businesses. The Indian Express report.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What helps SHG income gains last?
Durable gains depend on more than credit access. Groups need enterprises that fit local demand, connections to buyers and value chains, appropriate finance and consistent support from community institutions. The IRMA assessment recommended stronger federations, sustainable enterprises and value chains, expanded credit in poorly banked areas, and stronger state mission systems. Ministry summary of the IRMA assessment.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteThat is the difference between creating a financial channel and building a livelihood. SHGs can give women a platform for savings, skills, credit and collective access to services; whether those resources lift household income depends in part on whether members can turn them into viable work and reach a market.
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