NGO’s in India


  1. People's acts of kindness are always appreciated and are ingrained in human culture and social custom. It is now widely acknowledged that individuals need to form attributed associations and participate, particularly in rural development.
  2. At the moment, these non-profits have grown significantly in number, gained prominence, and conducted numerous novel experiments to promote the development of the nation. Non-governmental organizations, or NGOs for short, are very important and play a crucial role in the global population growth.
  3. The World Bank defines non-governmental organizations (NGOs) as "private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or engage in community development."
  4. Any nation's growth is accelerated by non-governmental organizations. A non-governmental organization is one that was not established by states and is not a division of a government institution. Most of the time, non-governmental organizations operate independently of governments.

Evolution of NGO’s

Indian non-governmental organizations (NGOs) have been around since antiquity. In the past, citizens of this nation assisted those in need. Volunteer service to the helpless and poor has been a national tradition for centuries. People were initially motivated to perform these services by their religious beliefs.

  1. Prior to independence: The 19th-century restructuring movements may have been the first systematized forms of voluntary service to society. During this time, caste inflexibilities were strong, untouchability was common, and other social ills like child marriage and the cursed status of widows were common in Indian society.
  2. Against these social ills, voluntary organizations launched transformation efforts. These organizations were secular and liberal, worked across caste and creed lines, and were morally upright.
  3. Rabindranath Tagore demonstrated in his Santiniketan experiments prior to independence how education and culture could be incorporated into rural development. In his Wardha experiment, Gandhiji demonstrated how village industries could contribute to the development of India's disadvantaged populations.
  4. After independence: India was declared a welfare state in numerous reports following independence, and relevant provisions were included in the Indian Constitution. The Five Year Plans included provisions for social welfare. With voluntary organizations, the primary responsibility for arranging social welfare services remained.
  5. Industrialization, urbanization, education expansion, politicization, democratization, and modernization all benefited from independence. People were made more aware of the disparities that already existed, such as economic inequality (particularly landed inequality), gender inequality, inhuman social segregations like caste inequality and untouchability, as well as other social evils like child marriage, child labor, restrictions on widow marriage, and a plethora of other stigmas and prohibitions.

The role of non-governmental organizations (NGOs)

  1. These non-governmental organizations hold the belief that their primary responsibilities include gaining the consent and mobilization of the general public—as well as their specific target groups—such as women, children, agricultural laborers, construction workers, and social outcasts like devdasis and widows.
  2. They have a sincere belief that they can educate the populace and prepare them for ongoing struggle. They believe in social awakening, including the development of legal literacy and self-assurance.
  3. Voluntary action, which is inspired and promoted by voluntary actions engaged in development, plays a crucial role in the basic social structure of India.
  4. Non-governmental organizations (NGOs) play a significant role in shaping society. According to Edwards (2005), it is recognized that non-governmental organizations (NGOs) serve as potent forces for social, political, and economic development.

The following are additional functions performed by non-governmental organizations:

  1. Activate the Rural Delivery System
  2. Disseminate Information
  3. Mobilize Resources
  4. Promote Rural Leadership
  5. Represent the Rural People
  6. Ensure People's Participation
  7. Supplement Government Efforts
  8. Facilitator of development education, training, and professionalization
  9. Planner and implementer of development programmers
  10. Mobilizer of local resources and initiative
  11. Builder of self-reliant, sustainable society
  12. Mediator between people and government
  13. Supporter and partner of government program in activating delivery system
  14. Factor of improvement for the poor
  15. Facilitator of development education, training, and professionalization

Issues with Indian NGOs

  1. Many politicians and bureaucrats say that they are opposed to large-scale funding of NGOs, especially foreign funding, for three
  2. They may misappropriate foreign funds to undermine Indian democracy
  3. They may misappropriate grants
  4. They may misappropriate tax benefits for personal gain
  5. SECURITY CONCERNS: In political circles, it's common to say that foreign funds help NGOs push the "West's agenda," which includes environmental and human rights issues.
  6. CONTRADICTORY SUGGESTIONS: Under the provisions of the Foreign Contributions Regulation Act (FCRA), several organizations that have strong political support have been receiving foreign funds despite opposition from political leaders.
  7. Waste of money: NGOs have had to contend with corruption as well. In a recent Outlook interview, Smita Nagraj, executive director of the Central Social Welfare Board (CSWB), stated that managing NGOs "has become big business." Over 3,500 non-governmental organizations have been placed on the CSWB's blacklist because they did not provide accounts for projects that the board had funded. The media paid a lot of attention to the blacklist.

Way forward

  1. To guarantee NGOs' compliance, a National Accreditation Council comprised of academics, activists, and retired bureaucrats should be established.
  2. In terms of monitoring and regulating illicit and unaccounted funds, the Ministries of Home Affairs and Finance ought to work together more closely.
  3. The need of the hour is a regulatory mechanism to monitor the financial activities of NGOs and voluntary organizations.
  4. Today's citizens want to be involved in the decisions that affect them, so it's important that their participation in democracy extends beyond the rite of passage of the ballot and includes issues like social justice, gender equity, inclusion, and other issues.


What are Self Help Groups?

  1. Poor individuals form small groups known as Self-help groups (SHGs). The challenges faced by SHG members are comparable. They collaborate to resolve their issues. The members of SHGs encourage modest savings.
  2. The bank is where the savings are kept. The SHG's common fund is named after this. Who aids in the formation of SHGs? The SHG provides its members with small loans from its common fund.
  3. The poor must first be helped to form groups by a local person who is helpful and has a reasonable amount of education. He or she discusses the advantages of grouping together and being thrifty. This individual is referred to as an "animator" or "facilitator." The animator is typically someone who is already well-known in the community.

A successful animator can be any of the following:

  1. A well-known local teacher or government employee who has retired.
  2. An employee of the state government's development agency or department, a field officer, or a health worker.
  3. An NGO field level functionary, a commercial bank/regional rural bank field officer, or a local co-operative bank or society field staff member
  4. A local educated individual who is unemployed and inclined to assist others.
  5. A participant in NABARD's Vikas Volunteer Vahini (VVV) Program.
  6. Women animators can organize women's SHGs more effectively. The animator cannot manage the groups on her or his own. The individual will require direction, preparing, understanding material, and so forth. Typically, one of the following organizations assists:
  7. A non-governmental organization (NGO) or voluntary organization
  8. The state government's department of development.
  9. A bank's local branch.

Functioning of SHGs

Size of the SHG

  1. An SHG should have between 10 and 20 members. Advantage: Members of a larger group cannot actively participate. Additionally, a 20-member limit is required by law for an informal group. There is no need to register the group.


  1. Only one person from the same family can join an SHG. This allows more families to join SHGs.
  2. The group typically consists solely of men or women. In general, mixed groups are not to be preferred. It has generally been discovered that women's groups perform better. They are better saved and typically ensure proper loan utilization.
  3. The members ought to come from similar social and financial backgrounds. Advantage: Because of this, it is simpler for the members to freely interact with one another. The poor may not be given much of an opportunity to express themselves if members come from both the rich and the poor classes.

Principal Purposes of an SHG Savings and Thrift:

  1. Every member of the SHG routinely saves a small amount. Although the sum may be insignificant, saving must be a consistent and ongoing habit among all members.
  2. Every SHG member ought to live by the motto "Savings first, Credit later."
  3. When SHG members start small savings, they move closer to becoming independent. Through saving money and lending money to themselves, they learn financial discipline. Advantage: When they use bank loans, this is helpful.)

External borrowing:

  1. Members of the SHG should be able to borrow money from the savings.
  2. The purpose, amount, interest rate, repayment plan, etc., are the responsibility of the group as a whole. The SHG must keep accurate accounts.

Bringing up issues:

  1. The SHG should be encouraged to discuss and try to find solutions to the group's problems at every meeting. The poor as a group are weak and without the resources to solve their problems. It becomes easier for the group's members to confront challenges and come up with solutions when the group tries to assist them.

Getting a loan:

  1. The SHG borrows money from the bank and gives it to its members as loans.

Roles played by SHG’s

  1. Income generation: The distribution of average annual per capita income among SHGs reveals that the region's members' average annual per capita income was extremely low prior to the formation of SHGs, with the majority of them living below the poverty line. Income generation for the poor However, salaries for members have slightly increased since SHGs were established.
  2. Formation of a Group: The group typically consists of 12 to 20 people, and poor sections require credit for self-employment and financial independence. Poor people often struggle to get bank loans, but by joining an SHG, they can improve their chances of getting one. As a result, SHGs have a better chance of generating income than individual efforts to ensure its long-term viability.
  3. Empowerment of women: Women's contribution to income has increased. It gave them more control over the choices that shaped their lives. This has increased women's participation in decision-making. It has improved both their ability to access and comprehend various assistance systems and organizations. Member households' expenditures on girl education have also increased.
  4. Address the collateral issue: A self-help group can solve the collateral problem. Individuals can get cash from the gathering without setting up any guarantee to suit their prerequisites. The Group charges interest on their loans, but it is less than what money lenders charge. The majority of decisions regarding savings and loan activity are made by group members. The group agrees, among other things, on the kind of loans to be given, how much money to borrow, the interest rate to pay, and when to pay them back. The group is responsible for repaying the loan.

Hurdles to SHG’s

  1. Lack of information and awareness: India's obstacles to SHGs include a lack of information and a lack of awareness among SHG members about viable and profitable livelihood options.
  2. There is no formal banking support: there are approximately 1.2 million bank branches and more than 6 million villages. Additionally, due to the continuing high cost of servicing, many public sector banks and microfinance institutions are unwilling to provide financial services to the poor.
  3. There is no security: The members of SHGs work together to build trust and confidence. • Remaining small scale: Only a small number of Self-Help Groups are able to advance from the level of microfinance to that of micro entrepreneurship. The SHGs' deposits are not secured or safe.

How to make SHGs' Effectiveness

  1. Linking to Government Plans: Including shgs in government programs would make it easier for them to take advantage of every government program.
  2. Providing assistance from the government: The government ought to act as a facilitator and promoter, creating a favorable environment for the SHG movement's expansion and development.
  3. Expanding the territory: Expanding the movement of SHGs to areas of the country with low credit scores, such as Madhya Pradesh, Rajasthan, and the North-East states.
  4. Digital assistance for SHGs: by implementing numerous IT-facilitated communication and capacity-building measures in these States.
  5. A shift in attitude: The poor and marginalized should be treated as viable, responsible customers and potential entrepreneurs by government officials.
  6. Constant surveillance: a separate SHG monitoring cell must be established in each state. The cell ought to have direct connections to the monitoring systems at the district and block levels. The cell ought to gather qualitative as well as quantitative data.

Successful SHG Case Study

  1. In Kerala, Kudumbashree is the most prominent community organization of women's Neighborhood Groups (NHGs). The State Poverty Eradication Mission (SPEM) of the Government of Kerala started a self-help group movement in 1997 with the primary goals of empowering women and eliminating poverty.
  2. At the moment, Kudumbashree has a staggering 4.58 million members spread out across 306,551 neighborhood groups. As a result, it is the world's largest women's network; Furthermore, regardless of which government has been in power, expansion has thrived, an impressive feat.
  3. The Kudumbashree's ability to serve as a link between people and various units of local self-government is due to their deep roots in Kerala.

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