Microfinance is considered one of the key drivers of financial inclusion and pro-poor financial growth in India. Microfinance in India became popular through the Self-Help Group (SHG) movement initiated by NABARD. Presently, more than 178 million households of 14.4 million SHGs have access to financial services through this movement. The success of financial inclusion lies in successfully implementing the SHG Bank Linkage program (SHG-BLP). SHGs are generally promoted by social organisations like NGOs, welfare societies, etc. Thus, properly implementing the scheme largely depends on the credibility of the Promoting Institutions (SHPIs). In this study, we try to understand the activities carried out by SHGs, how they help financial inclusion, and the role of SHPIs in promoting women entrepreneurship. Through in-depth personal interviews with members of SHG and SHPIs, we have presented a scenario of the SHG program at the Bargarh District of Odisha and the Midnapur District of West Bengal. This paper concludes with suggested measures to aid inclusive growth through the SHG movement.
Bardhan et al. (2025) studied this question.