Lakhpati Didi Initiative

Why is it in the News?

Recently, the Prime Minister of India attended the Lakhpati Didi Sammelan in Maharashtra. This significant event was centered around the empowerment of rural women through Self-Help Groups (SHGs).

Key Highlights of the Lakhpati Didi Sammelan:

• Certificates and Recognitions: The Prime Minister presented certificates and recognized 11 lakh new “Lakhpati Didis” who achieved this status during the third term of the current government.
• Financial Support: A revolving fund of Rs 2,500 crore was distributed, benefiting approximately 48 lakh members from 4.3 lakh SHGs. Additionally, Rs 5,000 crore in bank loans were allocated to support 25.8 lakh members of 2.35 lakh SHGs.
• Cultural and Economic Impact: The Prime Minister highlighted the crucial role of women in the rural economy and emphasized their contributions to India’s rise as the world’s third-largest economy within the next three years. This underscores a shift from historical neglect to contemporary initiatives aimed at reducing their economic challenges.

What is the Lakhpati Didi Initiative?

• Overview: A “Lakhpati Didi” refers to a member of a Self-Help Group who has attained an annual household income of at least one lakh rupees. This income is consistent across four agricultural seasons or business cycles, ensuring an average monthly income of over ten thousand rupees.
• Origins: Launched under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), this initiative encourages SHG households to engage in multiple livelihood activities and adopt value chain interventions to secure a sustainable annual income of one lakh rupees or more.
• Objective: The primary aim is to empower women by enhancing their income levels and transforming their lives through sustainable livelihood practices. These women become community role models, showcasing effective resource management and entrepreneurial skills.

Strategy of the Lakhpati Didi Initiative:

• Diverse Livelihood Options: The program focuses on broadening and enhancing livelihood opportunities for SHG members. Trained Community Resource Persons assist with livelihood planning using digital tools to facilitate resource linkages.
• Support Mechanisms: SHG members receive various forms of support, including assets (inputs, equipment, infrastructure), skills (both theoretical and practical), financial access (through bank linkages and government schemes), and market access (branding, packaging, and e-commerce).
• Capacity Building: Regular training sessions are provided for Mission Staff, community institutions, and SHG members to enhance their knowledge and skills related to livelihood activities.
• Partnerships and Collaboration: The initiative leverages synergies with various government schemes and collaborates with private sector entities to mobilize technical, financial, and capacity-building resources.

Achievements:

Since the inception of the Lakhpati Didi Yojana in 2023, one crore women have become Lakhpati Didis. The government has now increased its target from 2 crore to 3 crore women, acknowledging the success of 83 lakh SHGs with 9 crore women who are transforming the socio-economic landscape of rural India. Over Rs 6,000 crore has been disbursed to Women SHGs across the country.

Other Related Initiatives for Women Empowerment:

• Pradhan Mantri Mudra Yojana
• Mahila E-Haat
• Pradhan Mantri Awas Yojana
• Mission Shakti
• Nari Shakti Puraskar