The Vistarita Kanaklata Mahila Sabalikaran Yojana (VKMSY) is an ambitious scheme launched by the Assam government to empower women through financial inclusion and economic independence. The scheme primarily targets Self Help Groups (SHGs), which play a pivotal role in enabling women to become active contributors to the economy, thereby promoting rural development and gender equality.

Aims of VKMSY:

The core objective of the Vistarita Kanaklata Mahila Sabalikaran Yojana is to:

1. Strengthen women’s entrepreneurship through SHGs.
2. Facilitate access to credit and financial resources.
3. Promote livelihood generation activities, especially in rural areas.
4. Enhance the economic decision-making capacity of women.

The scheme is an extension of the Kanaklata Mahila Sabalikaran Yojana, expanding its outreach to more women-led SHGs, with a focus on building sustainable income-generating activities.

Benefits to SHGs under VKMSY:

1. Interest-Free Loans: SHGs in Assam are provided with interest-free loans up to ₹5 lakh under this scheme. This lowers the cost of borrowing, helping women invest in productive activities, such as agriculture, handloom, dairy, and small-scale industries.
2. Capacity Building and Training: The scheme emphasizes skill development for SHG members through capacity-building workshops and training programs. Women are taught essential skills like financial literacy, entrepreneurial management, and technical know-how, enhancing their ability to manage and grow their businesses.
3. Subsidies for SHG Products: To encourage women to engage in economic activities, the scheme offers subsidies on equipment and materials, such as for weaving and handicrafts. This supports the rural economy and boosts sectors like Assam’s handloom and handicraft industry, which employ a large number of women.
4. Market Linkage and Support: VKMSY helps SHGs in securing market linkages, ensuring that products made by women’s groups reach broader markets, both within and outside Assam. This access to a wider market directly contributes to income generation and the economic independence of SHG members.
5. Support for Agriculture and Allied Sectors: Since a significant number of SHGs are involved in agriculture and allied sectors, VKMSY provides input support, such as seeds, fertilizers, and other agricultural tools, enabling women farmers to increase productivity. This initiative has been crucial for improving the financial status of women in rural areas.

Data and Reports:

• According to a report from the National Rural Livelihood Mission (NRLM), SHGs in Assam have seen a steady growth in participation, with more than 4 lakh women associated with SHGs across the state as of 2023. VKMSY plays a critical role in furthering this growth.
• The World Bank and Ministry of Rural Development have highlighted that SHGs are vital for the poverty alleviation of rural women, increasing their household income by up to 30%. VKMSY, by extending support to SHGs, directly aligns with these findings.
  • This is in consonance with Nobel laureate Esther Duflo’s studies on gender equality and poverty reduction. It highlights the significant impact of women’s empowerment on community development. Her research emphasizes that when women have access to financial resources and decision-making powers, there is a marked improvement in the education, health, and economic status of the family. This is directly reflected in the design of VKMSY, which empowers women to become financially independent and make informed economic decisions, leading to broader social welfare.

The Vistarita Kanaklata Mahila Sabalikaran Yojana is a crucial step towards ensuring women’s economic empowerment in Assam, particularly through the enhancement of SHGs. By offering interest-free loans, capacity-building initiatives, and market linkages, the scheme not only contributes to rural economic development but also aligns with larger national and global objectives of gender equity and sustainable development. Studies, like those by Esther Duflo, reinforce the significance of such schemes in creating lasting social and economic change, empowering women to uplift their communities.

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