[Kurukshetra July 2024 Summary-2] Lakhpati Didi Initiative- Significance and Challenges- Explained Pointwise

With the success of the Deendayal Antyodaya Yojana National Rural Livelihood Mission (DAY-NRLM) in mobilizing more than 10 crore households into 91 lakh Self-Help Groups (SHGs), the focus has shifted now to creating sustainable livelihoods for the members. Lakhpati Initiative stresses on the creation of different livelihood models across the farm and non-farm sectors for enhancing the household income in a manner that each household earns at least one lakh rupees in a year.

Who is Lakhpati Didi? What is the strategy of Lakhpati Didi Initiative?

Lakhpati Didi- A Lakhpati Didi is a Self-Help Group member who earns an annual household income of Rupees One Lakh (Rs. 1,00,000) or more. This income is calculated for at least four agricultural seasons and/or business cycles, with an average monthly income exceeding Rupees Ten Thousand (Rs. 10,000), so that it is sustainable.

Strategy for Lakhapti Didi initiative

1. Deepening, Strengthening and Expansion of Livelihood options- Facilitating and enabling the households to take up diversified income-generating activities. Trained Community Resource Persons to facilitate the Livelihood Planning using a tool and uploading it to a digital platform for further consolidation and resource linkages.

2. Implementation Support- Adequate and timely support is facilitated to the SHG members/ Federations for Livelihood enhancement is provided in the form of-
a. Assets (Input, equipment, infrastructure)
b. Skills (Knowledge and practical skills)
c. Access to Finance (Bank linkage, leveraging departmental schemes, Corporate Social Responsibility)
d. Marketing Support (Branding, Packaging, e-commerce etc.).

3. Convergence and Partnerships- Convergence with various schemes (Inter and Intra departmental) undertaken for mobilizing technical, and financial resources, and capacity building of SHG federations.

Convergence between the schemes of Ministry of Rural Development (MoRD), Ministry of Agriculture & Farmers’ Welfare (MoA&FW), Department of Animal Husbandry and Dairying (DAHD), Ministry of Food Processing Industries (MoFPI).

4. Training and Capacity Building- Regular and structured capacity building and exposure of Mission staff, line department officials, community institutions, community cadre and resource persons is undertaken.

What is the Significance of Lakhpati Didi Initiative?

1. Financial Empowerment of Women- The program targets to create 3 crore Lakhpati Didis by 2025. By helping women attain a sustainable income of at least Rs. 1 lakh per annum, the initiative enables them to become financially independent and improve their standard of living.

2. Promotion of Entrepreneurship and Employment- The Lakhpati Didi initiative encourages women to start micro-enterprises and become self-reliant. This entrepreneurial skill will help in generation of additional employment. For ex- Lakhpati Didis starting tailoring business after acquiring the necessary skills.

3. Role Models of Women Empowerment- Lakhpati Didis serve as an inspiration to the women community to empower themselves. They inspire other women through their adoption of sustainable livelihood practices and achievement of a decent standard of life. They serve as conduits for crucial financial literacy, skill development, and livelihood assistance.

4. Rural Economic Development- The collective impact of empowered women entrepreneurs through Lakhpati Didi initiative contributes to the development of rural economy. For ex- Development of Kondagaon block of Chhattisgarh through the Lakhpati Didi intervention.

What are the Challenges in the Creation of Lakhpati Didis?

1. Skill Development and Training Gaps- Women in rural areas lack the necessary skills and education. This creates a challenge for the scaling up of programs like Lakhpati Didis which aim to utilize skills of rural women.

2. Lack of Access to Financial Resources- Rural women face barriers in accessing credit and financial services. The lack of tailored financial products for rural women hinders their ability to invest in and grow their businesses effectively.

3. Inadequate Market Linkages- Many women struggle to scale up their businesses due to inadequate market linkages. This limits their ability to sell their products and achieve sustainable income levels.

4. Cultural and Social Barriers- Women face resistance from their families or communities, in business operations. These barriers also hamper their engagement in the Lakhpati Didi initiatives.

5. Poor Digital Infrastructure- Poor digital infrastructure in rural areas such as low internet speed, latency and lack of adequate digital equipments create further challenges for the successful implementation of Lakhpati Didi Initiative.

What are the other Government initiatives for Women Empowerment?

What Should be the way Forward?

1. Effective Monitoring and Evaluation- Effective monitoring and evaluation mechanisms are necessary to assess the impact of the initiative and make necessary adjustments. Robust data collection and analysis should be employed to understand the initiative’s effectiveness and identify areas for improvement.

2. Skill Developing Training Programs- The alignment of training program with market demands and equipping of women with practical, applicable skills is crucial for their success in micro-enterprises.

3. Enhanced Market Access- The initiative must focus on creating technology-driven solutions and ensuring adequacy of digital resources to enhance market access of Lakhpati Didis.

4. Government and Institutional Collaboration- Ensuring effective collaboration among various government departments, NGOs, and private sector players to create a holistic support system for women entrepreneurs.