International Journal For Multidisciplinary Research

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Inter-state Disparities in Socio-economic Status and the Role of Self-help Groups in India: a Comparative Study

Author(s) Ajay Veer Vikram, Ashish Kumar, Dharmnath Urao
Country India
Abstract India has a population where 65% lives in rural areas, and 47% of the population relies on agriculture. India's labour force participation rate (LFPR) is 32.8%, which has increased by 9.5 percentage points from 2017-18 to 2021-22. This rising trend in the female LFPR is attributed to several influential factors, including government schemes to boost employment and promote women's empowerment. One significant initiative is the establishment of Self- Self-help groups (SHGs), which are committed to rural development. These groups aim to improve the quality of life and ensure more equitable and inclusive growth. The government's objective for the rural economy has been to "transform lives and livelihoods through proactive socio-economic inclusion, integration, and empowerment of rural India." The transformative potential of SHGs played a crucial role during the COVID-19 pandemic, serving as a foundation for rural development through women's empowerment. Research shows that SHGs have a statistically significant positive effect on women's social, economic, and political empowerment. This empowerment is achieved through various pathways, including familiarity with handling money, financial decision-making, improved social networks, asset ownership, and livelihood diversification. This study comprehensively analyzes inter-state differences based on socioeconomic status, utilizing secondary data from various sources. And found that interstate variation, highlighting that female participation in self-help groups is very low in northeastern states, but higher participation in states like Uttar Pradesh, Bihar, and Madhya Pradesh. These variations reflect the geographical, social, and economic status or culture of the respective states.
Keywords Self-help groups, Women empowerment, LFPR, Socio-Economic inclusion and Inclusive growth
Field Sociology > Economics
Published In Volume 8, Issue 2, March-April 2026
Published On 2026-03-17
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E-ISSN 2582-2160
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