On The Road To Being A Lakhpati

Life in the rural hinterlands of India is tough, but several self-help groups are trying to make a difference to how rural women earn their livelihoods. The government’s Lakhpati Didi scheme, which found a mention in the Interim Budget speech by Finance Minister Nirmala Sitharaman last month, is another ray of hope for women to start something of their own. Outlook Money spoke to women across five states—Assam, Uttar Pradesh, Jharkhand, Bihar and Chhattisgarh—to understand how they are striving to bring about a change in their lives

Abeda Khatun (left) along with her daughter

Being Resilient To Build A Future

Sanjeeb Baruah

Abeda Khatun

• Age 35 Kamalpur, Assam
• Took a loan to expand her fishery business in her village

Abeda Khatun, 35, is one of the two women selected for the Lakhpati Didi scheme from Madhya Betbari Gram Panchayat (GP) in Assam’s Barpeta district last year. This central government-backed rural livelihood scheme, implemented in different states, will allow Abeda, who is from Kamalpur village, to expand her fishery business, which has supported her family over the years.

Abeda, a mother of two, runs an integrated fishery, cattle and poultry farm with her husband Waris Ali, 46. She had applied for Rs 10 lakh through the block project manager under the Lakhpati Didi scheme. Although a final disbursement amount is still being considered, she expects it will be known to her in the coming weeks.

She plans to invest a big sum in her fisheries, which is proving to be more lucrative than her poultry and cattle ventures. Before her success in the fish venture, poultry and cattle were the mainstay of her farm.

Abeda has come a long way in her journey towards financial independence. It started in 2008, shortly after marriage, when she joined a 15-member self-help group, Rhino SHG, in Kamalpur under Madhya Betbari GP, some 110 km from state capital Guwahati. During this period, a “Jeevika Sakhi” (Momtaz Begum), a livelihood friend assigned to each gram panchayat under the Assam State Rural Livelihood Mission (ASRLM) to promote livelihood schemes, was constantly in touch with her. With her help, Abeda received Rs 15,000 from the SHG’s revolving fund as a grant for new members. She raised chickens and ducks in her backyard with that money. As years passed, she started making profits, and her business grew, which helped meet her household expenses.

In 2014, upon her request and with the Jeevika Sakhi’s support, she got Rs 50,000 sanctioned from the village organisation to help her start a cattle-rearing business. She paid a nominal 50 paise monthly on the loan with a 24-month repayment schedule. This time, she bought four pairs of goats and a pair of dairy cows. Abeda would sell 4-5 goats for meat in a year, and male calves born from the seed pair would be sold to other farmers. By this time, her household finances got better. Her poultry and cattle rearing business was doing well, and she had money from the profits to spare. She mostly reinvested the funds in her ventures and repaid the loan. Interestingly, the family also had a pond and reared fish for personal consumption, which would eventually become her next business venture.

In early 2019, with Jeevika Sakhi’s help again, she received a subsidised bank loan of Rs 1 lakh to develop two fisheries on her farmland. She already had a pond, which needed some upgrade, and built a new one. The fishery venture was an instant success. She sold hundreds of kilograms of fish over the next two years, earning much more than what she got from her poultry and cattle. The business saw a significant upswing, particularly during the Covid-19 pandemic. Buoyed by her success, she took three more fisheries on lease from neighbours in 2021.

Despite these upsides, Abeda’s journey hasn’t been smooth. She’s no stranger to life’s hardships and trials. Her frail, weather-beaten looks are proof of her daily struggle. Says Abeda, “My work starts at daybreak, usually at 5 am. After getting up in the morning, I do a round of the fisheries first, and then the ducks, hens and cows. Before returning to household chores, I feed the farm animals. I prepare meals for the family, send children to school, and do other household tasks.” Her daughter is in her first year of college, and her son is in Class VIII.

In 2022, Abeda’s family suffered from the worst floods in Assam, a devastating blow to her farm.  The floodwaters inundated her fishponds, leading to heavy losses.

She recalls: “Those were tough times for our family; we lost most of our farm animals and animal feed; the floodwaters washed away our fish ponds; the destruction was beyond anything imaginable. We thought we wouldn’t be able to restart, but luckily, some of our relatives came to our rescue with whatever help they could, and we also had some savings. During this time, Momtaz Begum was also of great help and was constantly in touch enquiring about our welfare.”

Abeda and her family have since rebuilt most of the farm, although it may take some time for the business to accelerate at full throttle as before when the annual profits after expenses were Rs 1.45 lakh.

In 2023, another help came along the way for the family in the form of the Lakhpati Didi scheme, she immediately applied for it and got selected with Jeevika Sakhi’s persuasion and guidance. Abeda now wants to scale down the cattle project and scale up the fishery project as she waits for the fund’s disbursement to help her bounce back strong into the game.

According to Maleka Ahmed, the president of the cluster level form of Madhya Betbari GP, an amount of Rs 6.5 crore has been allocated for the Paka Betbari block of which Rs 2 crore has been assigned for the Madhya Betbari GP, and each GP has around 500 SHGs.

Blazing The Trail

Versha Jain

Rashmi Singh

• Age 25  |  Manethu, UP
• Works as a banking correspondent (BC Sakhi) in her village since 2020

Rashmi Singh, 25, from Manethu village, Kanpur Dehat, started a self-help group (SHG) in 2020, with guidance from an SHG member in another village, where she used to go to attend her computer coaching classes in 2019. Currently, there are 14 members in her SHG, and she has initiated around 45 more SHGs in her village since 2020.

Working as a banking correspondent (BC Sakhi), since 2022, she helps her villagers in conducting banking transactions with ease. She visits the homes of the elderly and sick to help them with their banking needs, such as cash deposits, withdrawals, account opening, and so on.

Her efforts have not gone unnoticed. In 2022, she was awarded for her work by the Uttar Pradesh state government, and was also felicitated by Bank of Baroda officials in her area, where she works as a BC Sakhi. Additionally, she was also listed under the Lakhpati Didi scheme of the government and was informed about it by the village development officer in October 2023.

Rashmi had just passed her Class XII when Covid-19 struck in 2020, forcing her to stay at home and halt her studies. One day, she came across an advertisement for the recruitment of BC Sakhi in a newspaper, which required the applicant to be a member of an SHG. Being already affiliated with an SHG, she filled up the application form through her mobile and appeared for the exam. Later, she attended a one-week training and began working as a BC Sakhi in her village.

Initially, she earned a meagre income of Rs 250-500 per month. Her family, including her father, mother, and two brothers, as well as neighbours discouraged her. “Kuch milta toh hai nahi, kya hoga itni dhoop mein bhaagne se, isse achcha toh tuition padha lo bachcho ko (you don’t earn much from it, why are you troubling yourself in the scorching sun. It’s better to give tuition to children).”

Despite their skepticism and advice to stop working, Rashmi persisted. Her diligence paid off as people began recognising and trusting her. Now, she earns around Rs 15,000-17,000 per month and needs to go out only if there is a sick or elderly customer. Other villagers come to her for their banking needs.

Reflecting on her journey, she says, “Bahut mehnat karni padi thi humen. Kabhi lagta tha ki chhod de, sab log bhi yehi kahte they. Lekin hum karte rahe. Bas ye lagta tha ki kuch karna hai (I had to work very hard. At times, I even thought of giving up and everybody said the same, too. But I kept going. I just felt that I had to do this).”

Her achievements have inspired others too, leading to more women joining SHGs in her village. She started with just 50-60 bank accounts, and now manages around 800-900 accounts.

Now, she has completed her graduation, which she funded herself with her earnings, and is working full-time as a BC Sakhi. She even handles her finances independently and invests in a recurring deposit with her bank and a systematic investment plan (SIP), while also contributing to household expenses. Now she is also regularly invited to the village meetings, and feels that her work has earned her respect in the society as a role model for other young women like her. Her future goal is to excel in her work and earn at least Rs 30,000 per month.

Of Papads & Pickles

Sutirtha Sanyal

Pratima Pandey

• Age 50 Nawada, Jharkhand
• Joined an SHG in 2015 and sells edibles at village fairs and markets

Nawada village in Jharkhand, about 100 km from state capital Ranchi could pass off as any other non-descript Indian village—with thatched mud brick houses, dusty earthen roads and lush fields which are till today tilled the old way with oxen and plough.

It was here that Pratima Pandey, 50, lived with her husband and three children jostling between her multitasking roles as a homemaker, a farmer and an entrepreneur.

She would make papads (poppadums), achhar (pickles), badis (nuggets) and other stuff and sell them in the nearby towns or markets to add to the family’s income. But the earnings weren’t much. “Practically, everybody in the village makes these. I would earn maybe Rs 500-1,000 a month,” she says.

Later in 2015, she got in touch with an NGO, Jagriti Mahila Mandal in nearby Garwha town run by Suman Akhouri, who has been involved in the social development sector since the 1990s. Akhouri got together other women like Pratima and helped them form an SHG or collective by the name of Sristi Jagriti Mahila Swayam Sahayata Samuh.

Now, Pratima sells her products under the brand name of the collective at agricultural fairs organised by the National Bank For Agriculture And Rural Development (NABARD) and in the market.

The SHG makes a variety of products from edibles, such as pickles, papads, badis, jams and chutneys, to affordable sanitary napkins, bangles, eco-friendly bags, woven handicrafts, and so on.

Pratima earns about Rs 10,000-15,000 per month from these, and together with her income from farming, is now financially better placed than before. “I have now shifted with my children and husband to Garwha town. My husband is engaged in agriculture and also helps me at times. My children have completed their graduation and are employed. Every year, my husband and I go to the village to sow the fields and then hire workers during the reaping season to help us gather the harvest. We keep some for ourselves and sell the rest at the mandi, she says.”

Last year, in December 2023, their SHG of 10 women got a loan of Rs 4 lakh under the government’s Lakhpati Didi scheme. The women distributed the money among themselves and used it for house repair, buying cattle or even expanding their business. Previously too, Pratima has taken loans under various government schemes in 2017 and 2018 for buying cattle and expanding her business.

Says Akhouri: “Only when these women take these loans, expand their ventures, and increase their capital and income avenues, will they actually become Lakhpati Didis. Some of them have also individually taken loans under the scheme and benefitted immensely.”

Seizing Opportunities

Kundan Kishore

Kiran Devi

• Age 34 Narauli, Bihar
• Took a loan of Rs 10,000 to start a tiffin service in her village

Where there is a will, there is a way! This adage aptly describes the journey of Kiran Devi, 34, from Narauli village in Muzaffarpur district, approximately 75 km from Bihar’s capital, Patna.

Kiran had to discontinue her studies in class IX due to financial strain, and as the eldest of four sisters, she soon took on the responsibility of supporting her parents, who were engaged in strenuous field work. Though life was far from easy for her, she held on to the dream of improving her situation, though unsure how.

When she got married to Ranjeet Kumar, who was employed at a factory in Delhi, she was full of hope for a better life. However, Ranjeet sought employment in his hometown to be closer to his family and care for his parents. Kiran supported the decision, but managing the family with Ranjeet’s income of Rs 7,000 proved challenging. Life took a harsher turn when the Covid-19 pandemic hit, and Ranjeet lost his job. Kiran recalls, “It was a difficult time for us; we couldn’t even manage  two meals a day. But I did not lose hope.”

In February 2022, a friend suggested she join an SHG. Initially unfamiliar with SHGs, Kiran learned about their significance from friends. On March 10, 2022, she joined Jyoti SHG in her village, committing to a monthly contribution of Rs 100 and attending fortnightly meetings. Interaction with other women like her there boosted her confidence.

She seized an opportunity when a new power grid station was being set up in her village, and its officials needed food services. Kiran took a loan of Rs 10,000 from the SHG to start her tiffin service. Currently, she earns Rs 6,000-7,000 from this venture. Her SHG informed her about the Lakhpati Didi scheme, and she plans to apply for it. If selected, Kiran aims to start a beauty parlour in her village.

Gateway To Financial Independence

Tarun Bhardwaj

Lalita Naag

• Age 40 Gongla, Chhattisgarh
• Started a clothing store in her village. Earns Rs 10,000-15,000 a month

Anita Dugge

• Age 47 Korra, Chhattisgarh
• Bought an auto-rickshaw on loan; manages the finances and its maintenance

In Chhattisgarh’s remotest district, where extremist activities have long plagued growth and development, there is a quiet tale of empowerment. The Sukma district has been marred by the shadows of insurgency for years.

Agriculture has traditionally been the prime source of income for most in the hinterland, including Sukma. It is among some of the least developed districts in India. Over 83 per cent of the district’s population belongs to tribal communities.

Against this backdrop, SHGs are working for a change, not merely through the benevolence of the government, but through their own will. Lakhpati Didi scheme is aiding their efforts now.

Lalita Naag, who is from Gongla village in Sukma district, and is covered under the Lakhpati Didi scheme, shared her transformative journey since joining the group in 2016. The scheme, launched last year, provides financial support to rural women to start their own ventures, and became Lalita’s gateway to economic independence. With the loan, she ventured into the entrepreneurial realm, establishing
a clothing store. Her monthly earnings, ranging between Rs 10,000 and Rs 15,000, highlight a newfound financial stability.

Lalita is now thinking beyond immediate gains. She invests in her daughter’s future by opening accounts with Sukanya Samriddhi Yojana and Jan Dhan Yojana. The Lakhpati Didi scheme, for her, is not just a financial boost, but a catalyst for securing her family’s prosperity. “Since joining the Lakhpati Didi scheme, my financial condition has improved significantly,” she says.

Lalita also sees the growing trend of online shopping as an emerging challenge to her venture. It has yet to reach rural Chhattisgarh similar to the metro, but Lalita says that the connection she has with her customers cannot be replaced by any online app.

Anita Dugge, from Korra village, another laabharthi or beneficiary of the program, chose a different path to economic empowerment.

Opting to buy an auto-rickshaw, she transformed the loan into a sustainable source of income for her family. She hired a driver to operate the vehicle. Now, she manages the finances and its maintenance.

She makes sure she prioritises the loan repayment from the profits. She says, “We prioritise repaying the loan, and then use the remaining income for household needs.”

With the new source of income, there is a new challenge for Anita as well. The number of personal vehicles and public transport vehicles is also increasing in Sukma, and there is rigorous competition for them. She says while the development has dented her earnings a bit, she is managing the challenge.

Anita also contributes to a life insurance policy.

Through these individual narratives, the Lakhpati Didi scheme has emerged as a force for change for these rural women in Chhattisgarh, breaking the shackles of financial dependency and fostering self-reliance.