Inclusive Economic Growth Through Self-Help Group-Bank Linkage Programme in India

Commercial banks play a pivotal role in enhancing economic growth through financial inclusion programs. Self-Help Group (SHG) economic activity is an integral part of this financial inclusion plan. The study observes a connection between economic growth, the financial services of commercial banks, and self-help group activities. The loan amount provided by banks to SHGs exhibited consistent growth from $13.26 million in 1999 to $1544.88 million in 2007. There is a positive correlation between the number of SHGs financed and the loan amount provided. The GDP growth rate fluctuated during this period, with both positive and negative changes. The highest GDP growth rate was observed in 2010, reaching 8.4976%, indicating a strong economic performance and expansion that year. In 2003, 2004, and 2005, GDP growth rates were also high at 7.8604, 7.9229 and 7.9234%, respectively.