M. RAJALAXMI AND T. INDRA
DOI: https://doi.org/This study explores the impact of Self Help Groups (SHGs) on women’s socio-economic development in the Andaman and Nicobar Islands, a region with unique challenges. It investigates how participation in SHGs influences savings, consumption patterns, income transformation, indebtedness, and decision-making abilities among women across different income groups. Data was collected from 276 SHG members using a proportionate sampling method across three districts: Nicobars, North & Middle Andaman, and South Andaman. The findings reveal that both the Average and Marginal Propensity to Save and Consume increase with rising income levels, reflecting enhanced financial flexibility and evolving priorities. Rostow’s stages of growth theory provide a framework for analysing this progression, with SHG members advancing from subsistence-level activities to more developed economic participation. However, challenges remain, particularly in achieving equitable decision-making and access to higher income opportunities. The study highlights the need for tailored financial strategies, such as recurring deposit schemes and sustainable investments in local livelihoods like eco-tourism and fisheries, to harness SHG women’s increasing financial autonomy. These interventions have the potential to promote long-term economic empowerment while preserving cultural and environmental heritage, offering a blueprint for sustainable development in the region.
