Assessing the Role of Self-Help Groups in Empowering Marginalized Communities in India

Abstract:

This study examines the role of Self-Help Groups (SHGs) in empowering marginalized communities in India through the lens of financial inclusion and social transformation. The primary objective is to assess the relationship between SHG participation and financial inclusion among marginalized populations. Secondary data from 2010 to 2020 on SHGs' financial activities, including savings with banks, loans disbursed to SHGs, and loans outstanding against SHGs, are analyzed. The study formulates null and alternative hypotheses to test this relationship, and the statistical tools used include correlation analysis with a two-tailed t-test. The findings reveal a strong positive correlation, supporting the alternative hypothesis and suggesting that SHGs play a significant role in promoting financial inclusion in India's marginalized communities.