Balancing Quality and Quantity in SHGs in India

This paper discusses concerns about the escalation in the number of SHGs in India, and analyzes SHG practices.There has been an unequal regional distribution of SHGs in India, with most of them being concentrated in the southern states. The Government has to balance the quality of SHGs, while broadcasting them over a wider area. The paper discusses SHG ratings, market distortions, and federations. It states that:

• SHG rating is not only a pre-appraisal tool, but also a self-monitoring yardstick for SHGs;
• Multiplicity of rating tools in the market is a good indicator of the concern on quality;
• Subsidy-oriented government programs have caused perceived market distortions;
• Haste to spread and cover larger market area has disturbed established conventions and best practices;
• Clients perceive a tension between SHGs and federations;
• Zeal for making federations should not result in deteriorating quality aspects of SHGs.

The paper presents a comparative analysis of existing practices with the recommended practices in SHGs. The analysis of SHG performance has revealed a dip in qualitative attributes. SHGs need to overcome poor quality with the right orientation and attitude.