Question

What is the primary objective of Self-Help Groups (SHGs) in India?

• A. To promote large-scale industrialization
• B. To foster rural entrepreneurship and financial inclusion through collective savings
• C. To act as intermediaries for multinational companies
• D. To implement government policies directly

Answer 1

Answer:

B. To foster rural entrepreneurship and financial inclusion through collective savings

Self-Help Groups (SHGs) are formed to promote financial inclusion and self-reliance among low-income individuals, particularly women, by encouraging savings and providing easy access to credit. This helps in promoting small-scale entrepreneurship and improving livelihoods.