Exploring the Role of Self-Help Group and Social Inclusion Across the Indian States: A Microfinance Perspective

Vol 10 , Issue 1 , January - June 2023 | Pages: 95-109 | Research Paper

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https://doi.org/10.17492/jpi.pragati.v10i1.1012306

Published Online: June 15, 2023

Author Details ( * ) denotes Corresponding author

1. * Debabrata Mukhopadhyay, Professor, Department of Economics, West Bengal State University, Hooghly, West Bengal, India (debu1641975@yahoo.co.in)

The Reserve Bank of India (RBI) in its September 2008 Report stated that financial services by the weaker and vulnerable sections is considered a pre-condition for faster growth and reduction of absolute poverty. Considering financial inclusion in terms of participation through the Self-Help Group (SHG) as a part of social inclusion, this study is aimed at investigating the social and economic determinants of SHG participation across the Indian states. The study explores the state of social inclusion of SHG members across the Indian states following an exploratory econometric approach. The states with lower per capita income have greater participation in SHG, and states with higher female literacy have more SHG participation rate. Again, the SHG participation has a strong regional presence in the southern states. The results demonstrate that the functioning of SHG in terms of participation, savings, and loan disbursement through SHG-bank linkages has to be more socially inclusive.

Keywords

Financial inclusion; Self-help group; Social inclusion; Female literacy

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