In the upcoming union budget, it is expected that the government will focus on its potential impact on fostering inclusive growth for farmers and women in India. Last year’s budget speech by the finance minister set the tone by emphasizing the economic empowerment of women, with a strategic plan to transform self-help groups (SHGs) into viable income-generating producer organizations and sustainable women enterprises.
Notably, the budget envisions empowering the massive network of over 8 crore women through SHGs, the world’s largest such network. While these networks have facilitated financial inclusion, the government aims to elevate them into entities that generate significant income, envisioning the emergence of “Lakhpati Mahila.”
The proposal suggests supporting women SHGs in evolving into larger value chain-focused producer organizations and women enterprises engaging in diverse business activities. This shift is expected to safeguard the substantial outstanding amounts in these SHG networks, totalling around INR 7.68 lakh crore as of November 2023.
To achieve these objectives, it is important for budget allocations to facilitate the transition of women to SHGs, drawing attention to successful models implemented by Grant Thornton Bharat that have impacted over 100 thousand women across the country.
The budget’s impact on small and marginal farmers is also expected. With the majority of farmers relying on holdings of less than 5 acres, the proposal emphasizes the aggregation of farmers into Farmer Producer Organizations (FPOs) supported by robust fiscal measures. This approach is seen as a more sustainable and fiscally viable option for doubling farmers’ income compared to simply increasing Minimum Support Prices (MSPs) for various commodities.
It is also suggested that the current expenditure of INR 58 lakhs per FPO should be expanded to at least INR 80 crore per FPO. To achieve this, the government needs to draw inspiration from successful FPO-related interventions, including those supported by multilateral and donor funding. Grant Thornton Bharat’s demonstrated technical tools are highlighted as potential models that can be emulated and replicated nationwide.