SBI Report: 65% of SHG Members Become Lakhpati Didis as Incomes Triple

The Women’s Self-Help Group (SHG) schemes are proving highly successful in rural areas, leading to a threefold increase in incomes, with 65 percent of SHG members nationwide becoming Lakhpati Didis, according to a report released by SBI on Tuesday.

The report anticipates Lakhpati Didis becoming a significant force by 2026-27 across most states and UTs.

Key findings from the report include:

• Credit linkage, digital access, and targeted policy measures, along with a strong entrepreneurial spirit, have resulted in a tripling of incomes for female SHG members during FY19-FY24 (credits in accounts). Urban female members have seen a 4.6X increase, while those under 27 years old have experienced a 4.7 times increase, highlighting the impact of the young nation theory. The majority of female SHG members are aged between 35 and 50, with a median age of 43.
• Income has risen for SHG members across the board, with around 65 percent of rural SHG members experiencing upward mobility in terms of relative income in FY24 compared to FY19.
• With the exception of metros, all regions have seen the greatest increase in income for female SHG members aged 28 to 42 in FY24 compared to FY19. In metro regions, the highest increase is observed in the age group under 27.
• While Andhra Pradesh and Telangana lead in SHGs, other states such as Tamil Nadu, Uttarakhand, Kerala, Punjab, and Gujarat have also significantly boosted female SHG incomes recently. Additionally, SHG members from Haryana, Madhya Pradesh, West Bengal, and Jharkhand are expected to surpass an annual income of Rs 1 lakh within a year. Members from Uttar Pradesh, Maharashtra, Chhattisgarh, and Rajasthan may take an additional two years to reach this milestone. By FY27, millions of Lakhpati Didis are expected to emerge in almost every state.
• ATM expenditure remains relatively constant during FY19-23 for SHG members, while spending at POS has increased by 1.7 times during FY20-FY23, with the highest spending observed in urban and metro regions.
• Region-specific differences in UPI expenditure are minimal, indicating similar patterns of digital payment usage among rural and metro SHG members. The share of P2M transactions in UPI transactions by SHG members has nearly doubled in four years, across all regions, highlighting the growing ease of digital payments for merchant transactions.
• Expenditure through Aadhar-enabled systems has increased by at least three times in FY24 compared to FY23 across all regions.