Vol. 11, Issue 12, Part B (2025)

Abstract
Poverty is the biggest challenge for each and every developing and underdeveloped countries in the twenty-first century. Poverty and unemployment are cyclic in nature. Unemployment leads to poverty, while poverty is caused by unemployment. According to the World Bank, 8.5% of the world’s population lives in extreme poverty, surviving on less than 2.15 us dollars per day. Poverty and inequality remain significant challenges in the world, particularly for women in rural and marginalised communities. Poverty alleviation and empowerment of women are interlinked aspects of social and economic development. In India, SHGs are working as a weapon in empowering poor women in achieving financial independence, social dignity and decision-making power. SHGs enable women to access microcredit, skill development, improve their livelihood, starting their own business and contribute to their family’s wellbeing. This paper throws light on the function of SHGs in India with focus on its role in reducing poverty.