Last year, Prime Minister Narendra Modi announced the scheme, which aims to encourage women to start micro-enterprises, during his Independence Day speech on August 15, 2023.
New Delhi, NFAPost: Finance Minister Nirmala Sitharaman on Thursday announced the government will enhance its ‘Lakhpati Didi’ scheme to target 3 crore women in India from the current two crore.
Last year, Prime Minister Narendra Modi announced the scheme, which aims to encourage women to start micro-enterprises, during his Independence Day speech on August 15, 2023.
The programme is aimed at training women in self-help groups so that they can earn a sustainable income of at least Rs 1 lakh per year, per household. Each Self Help Group household is encouraged to take up multiple livelihood activities, coupled with value chain interventions, resulting in an income of Rs 1 lakh or more per year.
These SHGs have emerged as catalysts of change, transforming the rural economy by empowering women with financial independence.
“Lakhpati Didi scheme of the government provides skill training and financial assistance to women to become a Lakhpati. The goal is to make the women self-reliant. Training is provided through Self Help Groups (SHG) in the villages,” explained Ankit Jain, Partner, Ved Jain & Associates.
The success of the Lakhpati Didi Scheme has been attributed to the establishment of monthly camps in local neighbourhoods, where eligible women, particularly those with lower incomes, are provided with loans.
“Putting women at the forefront, the finance ministry has made a significant stride in empowering them with the recent announcement in the Interim budget. The augmentation of benefits under the Lakhpati Didi scheme has been unveiled with an ambitious target – aiming to elevate the number of beneficiaries from the existing goal of 2 crore to 3 crore. This strategic move underscores a commitment to bolster the financial well-being of women and provide them with the tools to attain self-reliance,” said Adhil Shetty, CEO of BankBazaar.
The participants included various partners and support organisations both from the government and development sectors and Lakhpati SHG Didis and SHG Didis who aspire to join the Lakhpati Didi Club along with State Rural Livelihoods Mission from all over India.
The Mission seeks to achieve its objective through investing in four core components viz., (a) social mobilization and promotion and strengthening of self-managed and financially sustainable community institutions of the rural poor; (b) financial inclusion of the rural poor; (c) sustainable livelihoods; and (d) social inclusion, social development and convergence.
“The success of the scheme will depend on its effective implementation and the provision of necessary support to these SHGs. It’s also important to note that while the scheme has the potential to transform the rural economy, it should be complemented with other measures such as skill development, access to markets, and financial literacy programs to ensure holistic development and empowerment of women,” said Rohit Jain, Managing Partner, Singhania & Co.
“Expanding the ‘Lakhpati Didi’ scheme to encompass three crore women reflects a commendable effort to empower a significant segment of the female population economically. By scaling up the initiative, the government aims to catalyze financial independence and upliftment for a larger number of women, potentially fostering inclusive economic growth.
The government has not restricted itself for the upliftment of women but also has focused on healthcare of women,” said Maneet Pal Singh, Partner, I.P. Pasricha & Co.
“Recognising gender inclusion as a mainstream economic issue, the Budget referred to the success of the SHG / microfinance movement in increasing women’s income and assets. The budget also noted the increase of female enrolment in STEM courses which in turn could reflect in increased female labour force participation. The IMF estimates that increasing female labour force participation in India from the currently low base would increase GDP significantly. The budget also acknowledged female asset ownership as an economic and social justice issue”, said Richa Roy, Partner, Cyril Amarchand Mangaldas.
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