Empowering Women Through Self-Help Groups: A Pathway to Financial Inclusion and Socio-Economic Development in Odisha

Self-Help Groups (SHGs) have emerged as a powerful tool for socio-economic empowerment, particularly for women, in Odisha, an eastern state of India. This study examines the role of SHGs in fostering financial inclusion, social mobility, and community development in the eastern region of India. By facilitating microfinance, skill development, and collective decision-making, SHGs contribute to enhancing self-sufficiency and confidence among marginalized communities. Launched to support and strengthen Self-Help Groups (SHGs), this initiative has provided women in Odisha with opportunities for livelihood generation, financial inclusion, and socio-economic development. The research highlights key success factors, such as government support, NGO interventions, and digital financial services that have strengthened the SHG movement in Odisha. Additionally, challenges such as limited market access, financial literacy gaps, and operational sustainability are explored. This study develops a conceptual framework that delineates the enabling factors, core mechanisms of SHGs, and their associated socio-economic outcomes. This study seeks to analyze how participation in SHGs facilitates financial inclusion and empowers women to become active agents of change in Odisha. SHGs operate as grassroots mechanisms that enable marginalized women to access microfinance, engage in skill development, and participate in collective decision-making processes. These core mechanisms foster active engagement, leading to enhanced financial autonomy, social mobility, and livelihood generation. Ultimately, the framework posits that SHGs are central to promoting community development, gender equality, and sustainable livelihoods, positioning them as a transformative force in rural development policy and practice.