Women-led SHGs transforming rural economy

In the dusty hamlets and tribal heartlands of Rajasthan, a quiet economic transformation is underway.

- Shreya Guha

JAIPUR: Women-led self-help groups (SHGs), often born from communities with limited resources but deep-rooted resilience, are turning local women into entrepreneurs, bankers, and agri-business leaders.

A study by a team of researchers from the Malaviya National Institute of Technology (MNIT), Jaipur, shed light on the far-reaching impact and challenges of three major SHG-driven initiatives: Van Dhan Vikas Kendras (VDVKs), Banking Correspondent Sakhis (BC Sakhis), and Producer Groups (PGs).

Turning forest resources into prosperity Under the Pradhan Mantri Van Dhan Yojana (PMVDY), Van Dhan Vikas Kendras (VDVKs) have emerged as a powerful tool for empowering tribal communities, especially women, by turning forest produce into sources of prosperity. In regions like southern Rajasthan, these start-ups—supported by TRIFED, ministry of tribals affairs—help ensure minimum support price (MSP) for gatherers, facilitate value addition, and build robust market linkages.

Together, these initiatives have reduced economic distress, created employment, and enhanced incomes. As of now, 7322 VDSHGs have been grouped into 479 VDVKCs in Rajasthan, benefiting approximately 144,000 tribal gatherers over the past year. VDVK training is largely focused on forest (50.53%) and agricultural produce (43.16%).

Around 96% of VDVKs are engaged in activities involving minor forest produce (MFPs) such as sitafal (custard apple), jamun (Java plum), amla (Indian gooseberry), aritha (soapberries) and honey—either selling them directly or processing them into value-added products like aloe vera juice, herbal shampoo, wild honey, amla candy, and pickles.