DAY-NRLM and SHG Model: India’s Women-Led Rural Livelihood Mission Gains Global Recognition

DAY-NRLM has gained global traction, with African countries adopting India’s SHG-based model, highlighting its role in rural transformation and development diplomacy.

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About Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)

• DAY-NRLM popularly known as Aajeevika is a flagship poverty alleviation programme focusing on women-led Self-Help Groups (SHGs) which aims  to address multidimensional rural poverty through livelihoods, credit access, and empowerment.
• Launch: Conceived  in 2010 by the Ministry of Rural Development as a restructured version of Swarna Jayanti Gram Swarozgar Yojna (SGSY).
  • Renamed DAY-NRLM with effect from 2016.
  • Operates as a Centrally Sponsored Scheme across all States/UTs.
• Financial Assistance
  • Provides interest subvention on loans and promotes bank linkages.
  • Facilitates institutional credit access (₹12 lakh crore bank linkage).
  • Offers capitalisation support (₹51,368 crore).
• Budget 2026-27 allocation: ₹19,200 crore.
• Objectives
  • Mobilise rural poor into self-managed institutions (SHGs).
  • Enhance income through diversified livelihoods.
  • Promote financial inclusion and skill development.
  • Improve access to entitlements and public services.
• Targets
  • Households: ~7 crore+  rural poor households
  • Coverage: 700+ districts, ~6000 blocks
  • Villages: ~6 lakh villages, 2.5 lakh Gram Panchayats
  • Institutions: 9+ million SHGs
• Implementation Mechanism
  • Community-driven approach using SHGs and federations.
  • Deployment of community resource persons (CRPs).
  • Partnership with banks, NGOs, and local institutions.
  • Emphasis on self-help, peer learning, and accountability.

Key Areas of Work

• Social Mobilisation & Institution Building: One woman per household organised into SHGs.
  • Formation of federated institutions at village/block levels.
• Financial Inclusion: Bank credit access and financial literacy.
  • Promotion of community-based financial systems.
• Livelihood Promotion: Agriculture enhancement, livestock, and non-farm enterprises.
  • Focus on income diversification.
• Skill Development & Employment: Linked with DDU-Grameen Kaushalya Yojana (DDU-GKY) and Rural Self Employment Training Institutes (RSETIs).
  • Enhances youth employability and entrepreneurship.
• Social Inclusion & Entitlements: Improves access to health, nutrition, education, welfare schemes.
  • Focus on SCs, STs, minorities, and vulnerable groups.

Key Achievements of DAY-NRLM

• Women’s Economic Empowerment: 20 million+ women earning above ₹1 lakh annually.
  • Boosted female labour force participation.
• Massive Financial Inclusion: 50 million+ women accessed bank credit.
  • Strong SHG-bank linkage ecosystem.
• Institutional Expansion: Coverage of 100 million+ households across 742 districts.
  • Creation of 9 million+ SHGs.
• Grassroots Financial Infrastructure: Women banking correspondents in 60%+ local governments.
  • Strengthened last-mile service delivery.
• Scalable Development Model: Built community-led governance structures and livelihood ecosystems.

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Challenges in Implementation

• Institutional Dilution: Cluster-Level Federations (CLFs) often face a “weakening of autonomy,” becoming subservient to government officials rather than remaining community-managed, which dilutes the “self-help” ethos.
• The “Market Gap” & Scalability: While SHGs are proficient at production, they struggle with market linkages, branding, and logistics. Most remain micro-enterprises confined to local fairs (SARAS Melas) rather than mainstream value chains.
• Financial Redundancy: There is a growing concern regarding idle funds within community institutions; without robust statutory audits, large capitalization funds risk being underutilized or mismanaged.
• Digital & Skill Barriers: A significant “digital literacy gap” persists, hindering SHGs from adopting e-commerce (like the GeM portal) and advanced financial technologies required for modern enterprise management.

Way Forward

• Enterprise-Led Growth: Transition from “subsistence livelihoods” to “formal enterprises” by establishing SHE-Marts and dedicated national marketing verticals to bridge the gap between rural production and urban demand.
• Institutional Professionalization: Revitalize CLFs as autonomous business hubs with professional management and regular social audits to ensure transparency and financial discipline.
• Diversified Financing: Beyond traditional bank loans, introduce innovative financing like blended finance, equity, and venture capital to help high-performing SHGs scale up.
• Convergence 2.0: Create a “continuous governance architecture” that integrates livelihoods with climate-resilient agriculture and digital literacy, ensuring SHGs are future-ready for the global “South-South” cooperation model.

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DAY-NRLM exemplifies scalable, women-led development, transforming rural livelihoods in India while emerging as a model for South-South cooperation and global development practice.

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