Livelihood Transformations under NRLM: A Longitudinal Study of Collective Finance and Livelihood Activities in Uttar Pradesh
Keywords:
NRLM, Self-Help Groups, Rural Livelihood, Livelihood Transformation, And Collective FinanceAbstract
This study conducted a longitudinal descriptive analysis of livelihood transformations in Uttar Pradesh under the National Rural Livelihoods Mission (NRLM), focusing on collective finance mechanisms and livelihood indicators. Findings reveal substantial institutional expansion and financial outreach. By 2023–24, NRLM mobilised 9.24 million rural households, forming 838,053 Self-Help Groups (SHGs) and 58,026 Village Organisations.
Financial strengthening was pivotal: 743,441 SHGs received Revolving Funds (RF) totaling ₹122,011.7 lakhs, and 674,768 SHGs accessed Community Investment Funds (CIF) amounting to ₹787,329.3 lakhs. Earlier (2012–2021), 306,058 SHGs obtained RF and 185,050 accessed CIF, indicating progressive scaling.
NRLM also fostered livelihood diversification. Mahila Kisan participation in agricultural extension surged from 31,008 (2020–21) to 69,180 (2023–24), with 19,995 women benefiting from livestock interventions in 2023–24. Non-farm opportunities expanded, notably in food processing enterprises, rising from 553 (2020–21) to 5,164 (2025–26). Enterprise promotion yielded 4,279 enterprises in 2022–23, engaging 7,237 entrepreneurs and generating ₹6,590.01 lakhs in annual sales, despite later fluctuations.
Collective finance mechanisms under NRLM have thus enhanced financial inclusion, bolstered rural institutions, and promoted diversified, sustainable livelihoods in Uttar Pradesh.
References
Chandel, D. S., & Gupta, N. (2025). Women-led development through micro-finance led interventions: Myths or reality? Social Sciences & Humanities Open, 11, 101409.
Sengupta, N. (2024). Integrating gender in microfinance: Identifying strategies for women’s empowerment across different institutional models. International Journal of Educational Research Open, 7, 100357.
Rathinam, U., & Akudugu, M. A. (2014). Self-help groups as a ‘livelihood development’for rural women: Experiences from India and Ghana. Journal of Economics and Sustainable Development.
Panda, D. K., & Atibudhi, H. (2011). A study on selfhelp group-based microfinance impacting poor rural households. IIMS Journal of Management Science,
(1), 35-45.
Kumarasamy, D., Singh, P., & Kaur, S. (2025). Access to finance and young women entrepreneurs: Driving sustainable livelihood in rural India. ADBI Working Paper Series, 1498.
