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How These Rural Women Increased Their Earnings by 900%

Self-Help Group (SHG) women in Moradabad are transforming their lives through the Village Sarthi Program, achieving significant milestones in entrepreneurship, income growth, and economic empowerment. Read the article to get details. 
Indian Masterminds Stories

The district of Moradabad is witnessing a silent revolution led by its women. These Self-Help Group (SHG) women have achieved extraordinary milestones, including a staggering 900% increase in income and the creation of a new cadre of women entrepreneurs known as Udyam Sakhis. The number of SHGs has surged from 8,525 to 12,284, and their membership has grown from 88,698 to 133,438. Their collective savings have exceeded Rs. 60 lakhs, and the number of Lakhpati Didis—women with an income over 1 lakh—has seen a 60% increase. This transformation is driven by the Village Sarthi Program, which aligns with Prime Minister Narendra Modi’s vision of empowering rural women through digital empowerment and entrepreneurship.

Indian Masterminds spoke with IAS officer Sumit Yadav, who is the Chief Development Officer of Moradabad. Mr. Yadav shared the initiative in detail. 

A DIGITAL LIFELINE 

At the core of this transformation is the “Mahila Aajeevika e-store,” an e-governance initiative designed to empower rural women and promote entrepreneurship. The Village Sarthi program operates on a business-to-business (B2B) model, connecting Self-Help Groups (SHGs) as producers and sellers (Producer Didis) with SHGs as buyers (Udyam Sakhis) via a web-based application and mobile app. Mr. Yadav informed that this platform facilitates the sale of daily necessities, with a central warehouse storing a four-month supply of inventory comprising 60% branded Fast Moving Consumer Goods (FMCG) and 40% locally sourced SHG products.

The initiative focuses on training and skill development, aiming to reduce production costs for producer SHGs, enhance market outreach through technology, and promote women’s self-reliance and digital transactions. Real-time order updates and inventory management ensure efficient operations, with a revenue model that guarantees profit for both Producer SHGs and Udyam Sakhis while offering savings to end consumers.

MARKET ACCESS AND ECONOMIC EMPOWERMENT 

One of the primary challenges faced by SHG women in the Moradabad district has been limited market access. Traditionally, SHG women struggled to reach beyond their local markets, constraining their customer base and income potential. “The Village Sarthi program addresses this by providing an e-commerce platform that connects SHG producers with a broader market,” Mr. Yadav said. This platform allows Udyam Sakhis to place orders for SHG products through a web-based application, fulfilled by the central warehouse within 24 hours. By enhancing market access, the program enables SHG women to reach customers across the district and beyond, breaking geographical barriers and leading to increased sales and revenue.

The Village Sarthi initiative, led by DM Anuj Kumar, IAS, CDO Sumit Yadav, IAS, Assistant Collector Sunil Dhanwanta, IAS, and Rajnath Prasad Bhagat (DC, NRLM), in collaboration with Shopivate India under the leadership of CEO Shivam Kumar, has bolstered the program’s operational framework, providing robust support for rural entrepreneurship.

SEAMLESS OPERATION 

Village Sarthi operates through an e-commerce platform connecting SHGs as producers (Producer Didis) with SHGs as buyers (Udyam Sakhis). The central warehouse stores a four-month supply of inventory, including 60% branded FMCG and 40% locally sourced SHG products. The business model is B2B, where producer SHGs earn a 10% margin on their products and Udyam Sakhis earn a 10% profit on sales. Branded products are supplied by Shopivate India at 70% of the maximum retail price (MRP), sold to Udyam Sakhis at 80% of the MRP, and then to SHG women at 90% of the MRP. 

TRANSFORMATIVE NUMBERS 

The impact of Village Sarthi has been nothing short of remarkable-

  • The number of SHGs has increased from 8,525 to 12,284, with SHG members growing from 88,698 to 133,438.
  • The income of producer SHGs has surged from 50,000 to 500,000 rupees, a staggering 900% increase.
  • Udyam Sakhis has emerged as a new cadre of women entrepreneurs, numbering 324 and supplying products worth Rs. 3 crores, earning Rs. 28 lakhs as profit per month.
  • Overall savings of SHG women have amounted to more than Rs. 60 lakh.
  • There has been a 60% increase in the number of Lakhpati Didis, aligning with the vision of the Prime Minister and Chief Minister.

EXPANDING HORIZONS 

Mr. Yadav further informed about the future directions for the village sarthi program: 

1. Setting up e-stores in every Gram Panchayat in Moradabad will increase platform access and coverage.

2. Expanding from 324 to 643 Udyam Sakhis will provide more opportunities for women entrepreneurs.

3. Increasing order values will boost sales and profits.

4. Establishing one producer, SHG, in every Gram Panchayat will diversify product offerings and attract more customers.

5. Aiming to create over 50,000 Lakhpati Didis in Moradabad within the next year will further financial independence.

6. Expanding the program statewide will exponentially increase its impact, revenue, and profits for SHG women.

The Village Sarthi program is empowering rural women in Uttar Pradesh’s Moradabad district. By leveraging technology and innovation, the program has successfully addressed several challenges faced by SHGs, such as limited market access, high production costs, and a lack of digital literacy. The strategic focus on training and skill development has equipped SHG women with the necessary tools to thrive in the digital economy.

The program’s impact is evident in the rise of Lakhpati Didis, the increase in SHGs and their members, and the substantial savings realized by SHG women. As the program looks to the future, its expansion plans promise to further enhance the economic prospects of rural women. 


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