Lakhpati Didi Initiative: A Step Towards Women’s Economic Empowerment | UPSC

Introduction

• Recently it has been announced that the Prime Minister Narendra Modi will distribute certificates to 11 lakh women who benefitted from the ‘Lakhpati Didi’ scheme on August 25, in Maharashtra’s Jalgaon.

Who is a Lakhpati Didi? 

• A Lakhpati Didi is a woman member of a Self-Help Group (SHG) who has achieved an annual household income of ₹1,00,000 or more. 
• This income is sustained over at least four agricultural seasons or business cycles, ensuring a stable monthly income exceeding ₹10,000.

Strategic Pillars of the Lakhpati Didi Initiative

Expansion of Livelihood Opportunities

• • Diversified Income Sources: The initiative focuses on empowering SHG members by promoting diversified income-generating activities. Trained Community Resource Persons (CRPs) assist in creating comprehensive livelihood plans, which are then uploaded to a digital platform to facilitate resource allocation and linkages.
  • Example: In Madhya Pradesh, women engaged in multiple activities such as poultry farming and vegetable cultivation have successfully diversified their income sources.

Implementation and Support Mechanisms

• • Provision of Assets and Skills: SHG members receive support in the form of assets like equipment and infrastructure, along with knowledge and practical skills essential for their chosen livelihood activities.
  • Access to Finance: The initiative ensures that women have access to credit through bank linkages, departmental schemes, and Corporate Social Responsibility (CSR) funds.
  • Market Access: Enhanced support in branding, packaging, and e-commerce platforms enables SHG members to market their products effectively.
  • Example: Women from Jharkhand’s SHGs have successfully marketed their handmade products through e-commerce platforms, increasing their income.

Convergence and Collaboration

• • Inter-departmental Coordination: The initiative ensures the convergence of resources and expertise from various ministries, such as the Ministry of Rural Development, Ministry of Agriculture & Farmers’ Welfare, and Ministry of Food Processing Industries.
  • Example: In Chhattisgarh, the convergence of schemes has led to the effective development of agri-based enterprises among SHG members.

Capacity Building and Training

• • Structured Training Programs: Continuous capacity-building efforts are made for SHG members, community institutions, and line department officials. This includes regular training sessions, exposure visits, and workshops.
  • Example: SHG members in Odisha have undergone extensive training in fisheries, leading to increased productivity and income.

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Significance of the Lakhpati Didi Initiative

Financial Empowerment

• • Targeting Income Security: By 2025, the initiative aims to transform 3 crore women into Lakhpati Didis, helping them secure a sustainable annual income of ₹1 lakh or more.
  • Example: Women in Maharashtra’s SHGs have reported significant improvements in their financial independence due to the initiative.

Promotion of Entrepreneurship

• • Fostering Self-reliance: The initiative encourages women to establish micro-enterprises, leading to increased self-reliance and employment generation within rural communities.
  • Example: SHG women in Tamil Nadu have started small-scale tailoring businesses, creating local employment opportunities.

Role Models for Women Empowerment

• • Inspiring Change: Lakhpati Didis serve as role models, inspiring other women to adopt sustainable livelihood practices and improving their quality of life.
  • Example: In Uttar Pradesh, Lakhpati Didis have become community leaders, promoting financial literacy and entrepreneurship.

Rural Economic Development

• • Boosting the Local Economy: The initiative’s collective impact contributes to the broader development of rural areas, enhancing economic stability.
  • Example: The Kondagaon block in Chhattisgarh has witnessed substantial economic growth due to the successful implementation of the Lakhpati Didi initiative.

Challenges in Creating Lakhpati Didis

Skill Development Gaps

• • Limited Access to Training: Many rural women lack the necessary skills and education, posing a significant challenge to scaling up the initiative.
  • Example: In regions with low literacy rates, like Bihar, the lack of tailored training programs has hindered the success of SHGs.

Financial Access Barriers

• • Difficulty in Accessing Credit: Rural women often face challenges in securing credit due to limited access to financial services and products.
  • Example: SHG members in Rajasthan struggle to expand their businesses due to inadequate financial support.

Inadequate Market Linkages

• • Limited Market Reach: Many women find it difficult to scale their businesses due to a lack of effective market linkages, hindering sustainable income generation.
  • Example: Women in remote areas of Assam face challenges in accessing broader markets, limiting their business growth.

Cultural and Social Barriers

• • Resistance from Communities: Traditional gender roles and societal norms often restrict women’s participation in business activities.
  • Example: In parts of Haryana, cultural norms have prevented women from fully engaging in the Lakhpati Didi initiative.

Digital Infrastructure Challenges

• • Technology Gaps: Poor digital infrastructure in rural areas hampers the implementation of digital solutions essential for the initiative’s success.
  • Example: In states like Jharkhand, inadequate internet connectivity has affected the online marketing efforts of SHG products.

Complementary Government Initiatives for Women Empowerment

Economic Empowerment

• • Equal Pay and Maternity Benefits: The government promotes equal pay through labor codes and provides maternity leave through the Maternity Benefit (Amendment) Act, 2017.
  • Financial Access: Initiatives like Mudra Yojana and Mahila Udyam Nidhi Yojana offer women access to finance and entrepreneurship training.
  • Example: Women in Karnataka have benefited from Mudra loans to start small businesses.

Political Empowerment

• • Women’s Reservation in Politics: The Nari Shakti Vandana Adhiniyam ensures 33% reservation for women in the Lok Sabha and state legislative assemblies.
  • Local Governance: The 73rd and 74th Amendments provide 33% reservation for women in local bodies, with some states extending this to 50%.
  • Example: Bihar has successfully implemented 50% reservation for women in local bodies, leading to increased political participation.

Social Empowerment

• • Ending Child Marriage: The Prohibition of Child Marriage Act, 2006, aims to eliminate child marriage, while the Medical Termination of Pregnancy Amendment Act, 2021, safeguards reproductive rights.
  • Land Rights and Gender Budgeting: The government’s Digital India Land Records Modernisation Programme (DILRMP) protects women’s land rights, and gender-responsive budgeting promotes equality.
  • Example: States like Andhra Pradesh have been at the forefront of implementing gender-responsive budgeting.

Read also: Challenges and Strategies for Women’s Political Representation in India UPSC

Way Forward for the Lakhpati Didi Initiative

Effective Monitoring and Evaluation

• • Continuous Assessment: Establish robust monitoring systems to track progress and make necessary adjustments to the initiative. Data-driven insights will be key to refining strategies.
  • Example: Regular impact assessments in Gujarat have helped fine-tune the initiative’s implementation.

Skill Development Alignment

• • Market-Driven Training: Align training programs with market demands to ensure women acquire practical skills that enhance their micro-enterprises.
  • Example: Tailoring training in Rajasthan has been tailored to meet local market needs, resulting in better income outcomes.

Enhanced Market Access

• • Technology-Driven Solutions: Focus on leveraging technology to improve market access for SHG products, ensuring that digital resources are adequately provided.
  • Example: E-commerce initiatives in Kerala have helped SHGs reach wider markets, increasing their sales.

Collaboration and Partnerships

• • Holistic Support System: Foster collaboration between government departments, NGOs, and private sector players to create a comprehensive support network for women entrepreneurs.
  • Example: Partnerships with NGOs in West Bengal have strengthened the implementation of the Lakhpati Didi initiative, providing crucial support to SHGs.