Financial Empowerment and Lakhpati Baideu

Bijendra Gogoi

(bijendragogoidme@gmail.com)

While inaugurating the Start-Up Mahakumbh held at Bharat Mandapam in New Delhi in March this year, Prime Minister Narendra Modi commented that India has developed the third largest startup ecosystem with 1.25 lakh startups involving 12 lakh youth who are directly linked with them. In addition, 45% of the start-ups in the country in various sectors, including education, agriculture, health, etc., are led by women. Similarly, at the G20 Ministerial Conference on Women Empowerment held at Gandhinagar in Gujarat last year, PM Modi pointed out that in India, about 15% of unicorn startups have at least one woman founder, and the combined value of these women-led unicorns is over 40 billion dollars. The Prime Minister stressed the need to create a level platform where women achievers become the norm. He emphasized working towards removing the barriers that restrict their access to markets, global value chains, and affordable finance while ensuring that the burden of care and domestic work is appropriately addressed at the same time.

Today entrepreneurship has gained much importance in India. However, to ensure that more women come forth to lead this emerging field, it is imperative to amplify entrepreneurial drive amongst them. There is a need to enhance their financial knowledge, business skills, and easy access to capital. In the case of Assam, women’s empowerment is seen to have received special focus under the state government led by Dr. Himanta Biswa Sarma. The government has undertaken a number of significant steps to facilitate women taking full advantage of the budding entrepreneurial ecosystem in the state. Initiatives ranging from relieving women from the burden of microfinance loans to the implementation of the Orunodoi scheme demonstrate the commitment of the state government towards women’s empowerment. Besides, programmes like ‘Lakhpati Baideu’ and ‘Swa-Nirbhar Nari,’ along with increased assistance to self-help groups to further enhance women’s interest in entrepreneurship, have strengthened women’s economic independence. Similarly, the state government’s strong efforts to eradicate evil practices like child marriage and ensure the rights of girl children have laid the foundation for an equitable society.

In recent years, the contribution of women in the state’s economy has increased manifold, and the role of women self-help groups is particularly significant in this regard. Self-help groups have brought about a revolutionary change in the development of women’s entrepreneurial power in Assam. The state government’s initiative to form self-help groups has had a strong impact on the socio-economic empowerment of women in rural areas of Assam. Currently, about 40 lakh women in more than 3.62 lakh self-help groups are involved in various activities ranging from small-scale industries to agriculture and handicrafts in the state. Revolving Funds (RF) and Community Investment Funds (CIF) provided by the state and central governments have accelerated the pace of women’s entrepreneurship in the state.

The revolving fund is extended as a corpus to eligible SHGs to meet the production needs of their members. The main objective is to inculcate the habit of thrift and credit among the SHG members and build their institutional capacities on the management of external funds. The state government has been extending the revolving funds to the SHGs under the flagship programme Kankalta Mahila Sabalikarana Yojana. According to government data, since financial year 2023-24, the revolving fund support has been enhanced from the earlier amount of Rs 15,000 per SHG to Rs 25,000. On the other hand, the Community Investment Fund is extended to cluster-level organizations, which they provide as loans to SHGs. The objective of the fund is to increase livelihood opportunities and meet the social needs of the members of SHGs through income-generating activities. The CIF provided to each SHG has been increased to Rs 1.50 lakh from the financial year 2022-23.

The Livelihood Tracking System shows how the RF and CIF have strengthened the SHGs and impacted the state economy. According to this system, the annual income of SHG members in the state has increased from Rs 57,960 to Rs 70,503 in the last three years. During this period, the number of ‘Lakhpati Baideu’ has increased from 241,983 to 872,559. Through the ‘Lakhpati Baideu’ initiative, the Government of Assam aims to catalyse economic empowerment and financial independence among women in rural areas. Currently, more than 95,000 women SHG members in Nagaon district, more than 50,000 each in Cachar, Tinsukia, and Kamrup districts, more than 40,000 each in Lakhimpur and Sivasagar, and more than 30,000 each in Sonitpur, Dibrugarh, Golaghat, Udalguri, and Biswanath districts have registered an annual household income of Rs 1 lakh or more. These ‘Lakhpati Baideu’ now serve as an inspiration to the community, not solely for their income but for their transformation through adopting sustainable livelihood practices and achieving a decent standard of life.

The ‘Assam Microfinance Incentive and Relief Scheme’ implemented by the Government of Assam has also played an important role in the financial empowerment of women in the state. The scheme is an endeavor to provide incentives and relief to stressed microfinance borrowers, who have been divided in three categories. Under category I, borrowers who have regularly repaid loans have been offered a one-time incentive of Rs 25,000 or the outstanding balance, whichever is less. Category II covered accounts where loan repayment has exceeded the time limit by up to 89 days and are not classified as NPA. For Category III, accounts that have turned NPA, loans with outstanding amounts up to Rs 25,000 have been considered, and borrowers in these accounts have been prioritized for assistance based on their financial hardship. Borrowers under Category III have been provided with debt-free certificates by lending institutions, making them eligible for re-borrowing. Around 12 lakh borrowers have benefited under the scheme with assistance of over Rs 2,000 crore. This includes incentives of Rs 1,600 crore to 872,739 borrowers under category I, Rs 190 crore to 97,938 borrowers under category II, and Rs 291 crore to 222,949 borrowers under category III.

Weaving in Assam is not merely a means of livelihood but a cherished tradition that is deeply intertwined with the social and cultural fabric of the state. The traditional weaving culture of Assam is a rich tapestry of heritage, skill, and artistry that has been passed down through generations. Known for its intricate designs, vibrant colors, and superior craftsmanship, Assamese textiles hold a special place in the cultural landscape of the region. The Assam government’s flagship initiative named Swanirbhar Naari has also played an important role in women’s empowerment. Under this scheme, traditionally crafted textiles such as gamosa, aronai, dumer, and other garments are procured directly from registered indigenous weavers through the Swanirbhar Naari portal without any intermediary involvement. Moreover, payment to the weavers is transferred within four days through digital transfer against the procured items. This scheme has benefitted more than 18,000 weavers in two phases with an amount exceeding Rs 19 crore.

Along with economic empowerment of women, protection of women has also received a major impetus in Assam. The decline in crimes against women in the state from 29,046 to 12,034 between 2021 and 2022 indicates the strong steps taken by the government for women’s security. Another important step taken by the state government towards the protection and empowerment of women is its special drive against child marriage. The National Family Health Survey data from 2019-21 shows that 31.8% of women in Assam aged between 20 and 24 years were married before 18, and a similar percentage of men aged 25 to 29 years were married before the age of 21 years. As a result of the state government’s special drives to prevent child marriage, 5,413 cases have been registered till May 31 this year.

Initiatives of this kind have unleashed a positive environment in the state towards the protection and empowerment of women. The Assam government has taken steps to encourage women borrowers to repay their loans regularly and to maintain credit discipline. This is a welcome step, as such efforts will ensure a continuous flow of funds for women entrepreneurs. At the same time, to boost the entrepreneurship ecosystem, the SHG members and women entrepreneurs also have a significant responsibility. They must ensure timely repayment of loans so that the government does not need to contemplate any future endeavor to provide incentives and relief to stressed borrowers. They should focus on productive use of the grants received from the government and give priority to acquiring business skills as well as knowledge on financial management to transform themselves as successful entrepreneurs.