Financial Inclusion through SHGs: A Study of Women’s Economic Participation in Ziro Valley

Abstract

Financial inclusion has emerged as a crucial aspect of economic development, providing individuals and businesses with access to valuable and affordable financial products and services. In India, financial inclusion has gained significant attention as a means to empower marginalized and low-income populations, particularly women. One key mechanism for promoting financial inclusion among women in rural areas has been the establishment of Self-Help Groups (SHGs). This study examines the role of SelfHelp Groups (SHGs) in promoting financial inclusion and empowering Apatani women in Ziro Valley, Arunachal Pradesh. It explores how SHGs facilitate access to credit, enhance financial literacy, and influence household economic decision-making. Additionally, the research highlights the contribution of SHGs in fostering social cohesion, leadership skills, and community development. Through collective savings and microcredit facilities, these groups not only provide economic support but also strengthen women's financial independence and resilience. The study employs a mixed-methods approach, integrating both qualitative and quantitative techniques to assess the financial behaviour of SHG members. A purposive sampling method was used to select 70 SHG members, ensuring a focused analysis of their financial practices and socio-economic transformations. Furthermore, interviews with local community members were conducted to gain deeper insights into the informal financial system, revealing the widespread prevalence of traditional fund associations as alternative financial mechanisms in the absence of formal banking institutions. The findings of this study offer valuable insights into the effectiveness of SHGs in promoting financial inclusion and enhancing financial behaviour among Apatani women. By expanding access to financial resources and strengthening financial literacy, SHGs serve as critical instruments of empowerment, driving sustainable economic growth and socio-economic development in Ziro Valley.