Kudumbashree (1998): The Power Of Self-Help Groups Transforming Lives At The Grassroots – IMPRI Impact And Policy Research Institute

Policy Update
Sana Ansari

Kudumbashree, meaning “prosperity of the family” in Malayalam, is a participatory poverty eradication and women empowerment mission initiated by the Government of Kerala in 1998. This unique initiative functions through a three-tiered community network of women, aiming to uplift their income, education, and health while empowering them to participate in local governance and decision-making. The mission, guided by Local Self-Government Institutions established under the 73rd and 74th Constitutional Amendments, seeks to eradicate absolute poverty within a ten-year timeframe.

Supported by both the state and central governments, Kudumbashree distinguishes itself from similar programs through its process-oriented approach, encouraging gradual, sustainable development. NABARD has also contributed to the mission by organising community-based groups, complementing Kudumbashree’s vision. With the motto, “reaching out to families through women and reaching out to the community through families,” the mission places women at the heart of community development, fostering gender equality and social cohesion in Kerala. 

Structure of Kudumbashree

1. Neighbourhood Groups (NHG) / Ayalkoottam- The NHG, also called Ayalkoottam in Malayalam, is the lowest tier in the Kudumbashree structure, consisting of 20-40 women from low-income households.Members meet weekly at each other’s homes to discuss personal and community issues. These meetings also involve thrift contributions, which are pooled for microloans within the group. In these meetings, members collectively prepare micro plans to address local needs and improve their financial situations. Sometimes government officials attend to inform members about relevant schemes and programs.
2.  2. Area Development Society (ADS)-  The ADS is formed at the ward level by federating 10-15 NHGs. It has a general body, consisting of NHG representatives, and a governing body elected from among them. The ADS works closely with local self-government institutions, ensuring that its activities align with local policies. Ward members act as patrons in panchayats, while ward councillors chair monitoring and advisory committees in municipalities. The ADS assists in beneficiary selection for welfare programs, coordinates with the government for anti-poverty and development plans, and facilitates micro-enterprise and health programs in line with Kudumbashree’s objectives.
3. Community Development Society (CDS)- The CDS is the highest tier, consisting of all ADSs within a panchayat or urban body. The CDS has a general body and a governing body, elected from ADS representatives. The CDS oversees the mission’s activities at a broader level, liaisons with banks to provide microcredit, and supports the implementation of government welfare programs. It also promotes leadership skills and capacity-building among women.

Key Features

1.  Micro-Enterprise Development- Microenterprises under Kudumbashree aim to empower low-income women by offering them low-capital, low-risk ventures that can later grow into medium-sized businesses. Enterprises are owned and managed by members themselves and focus on fields like food processing, dairy, IT, and biotechnology.The mission supports enterprises that provide at least ₹1,500 per month per member, aiming for a turnover of ₹1–5 lakh. Training modules are also provided to support entrepreneurs.
2.   Health Initiatives-  Kudumbashree aims to improve community health by promoting the coverage of public health programs and addressing poverty-related diseases. Barefoot Doctors, trained health volunteers, support the community’s health needs. NHGs have health volunteers who ensure complete immunisation coverage among children in the community.
3.  Education and Child Welfare- To promote educational attainment among children in low-income families, Kudumbashree forms Mother-Teacher Associations and provides remedial education for underperforming students. The mission organises children from low-income families into Balasabhas, which foster informal learning, capacity-building, and creative activities for children. These clubs aim to nurture future community leaders.
4. Agriculture – Lease Land Group Farming (Harithashree)- To address land shortages and abandoned farmland in Kerala, Kudumbashree encourages NHGs to undertake lease-land group farming under the initiative “Harithashree.” This enables landless women to engage in farming, supporting both the community and underutilized lands.

Performance

 Kudumbashree has evolved into a transformative mission, seen differently across Kerala. For some, it is a state-driven poverty eradication initiative; for others, it is a platform for women’s social work or even the friendly face of neighbourhood waste collection. To many, Kudumbashree is a vital support—providing food, medicine, and aid to those in need. It has created opportunities for over 4.3 million women across 291,507 Neighborhood Groups, 19,489 Area Development Societies, and 1,064 Community Development Societies, empowering them to address community issues and foster self-sufficiency.

As of 2019, members have saved ₹47.52 billion, supporting around 2,600 small-scale enterprises and delivering essential supplies like nutrimix to Anganwadis. Kudumbashree also serves as a National Resource Organization under India’s National Rural Livelihood Mission, providing technical expertise to poverty-alleviation programs across states. Additionally, with the 73rd and 74th Constitutional Amendments reserving seats for women in local government, Kudumbashree has become a vital training ground and entry point for women in democratic governance, transforming local political landscapes. 

Impact

The Kudumbashree mission has created a significant multidimensional impact as a comprehensive poverty eradication program in Kerala.

 One of its key contributions is in strengthening the local government system and advancing the decentralisation process. Unlike in many states where self-help groups operate separately from local government, Kudumbashree’s community-based organisations work in partnership with local self-governments, aiding in both planning and implementing poverty reduction efforts. The allocation of a substantial portion of state plan funds directly to local governments has further empowered them to support self-help initiatives, allowing for better integration and more effective delivery of services.

Microfinance is another impactful feature of Kudumbashree. With low-interest loans and accessible financial services, Kudumbashree is often regarded by its members as a “bank at their doorstep.” This has enabled thousands of women, who previously had to rely on high-interest loans from private lenders, to access affordable credit, leading to improved economic stability for their families.

Additionally, Kudumbashree has fostered political empowerment among women, as seen in the 2005 local elections where over 3,200 Kudumbashree members ran for office, and more than 1,400 won seats. This reflects how the program has developed leadership skills among its members, encouraging their active participation in politics and furthering gender representation in local governance. This collective support from families and the wider community has been vital in enabling women to pursue empowerment and economic stability, making Kudumbashree a deeply impactful initiative in Kerala’s fight against poverty.

Kudumbashree has profoundly contributed to the social empowerment of women from economically marginalised backgrounds. Nearly all members report a remarkable boost in self-confidence and morale. Through the program, women have not only developed essential skills and knowledge but also acquired leadership qualities that allow them to take on more active roles in their communities..

Criticism and Emerging Issues

Despite its achievements, Kudumbashree faces criticism for potentially over-emphasizing economic empowerment. The focus on thrift and microcredit activities has raised concerns that it overlooks other critical areas, such as women’s health and education. Critics argue that Kudumbashree’s microcredit model, similar to those used by the Grameen Bank of Bangladesh, may prioritise financial returns over broader empowerment goals, positioning women as economic agents rather than full beneficiaries.

Some scholars suggest that this approach to poverty alleviation reflects a broader trend, where development funds and financial interests converge to integrate marginalised communities into the formal capitalist economy. This perspective, termed “poverty capital” by critics like Ananya Roy, shifts responsibility for well-being from the state to individuals, with women seen as “agents of development” bearing the brunt of economic responsibility.

Way forward

Despite these criticisms, studies have also noted Kudumbashree’s positive effect on the women’s participatory capacity in Kerala. Kudumbashree has become the recruiting ground of women leaders for local politics. The Mission has given women “broader visibility within the public sphere”. The way forward for Kudumbashree in these changing times depends greatly on how willing it is to relook at itself and explore ways to scale up. A better pooling of domain experts and practitioners into a central think tank of the Kudumbashree initiative would open up the possibility of churning out innovative ideas and testing that could help it recalibrate, reorganise and expand. 

About the contributor: Sana Ansari, researcher at Impri and Master’s in Public Policy student at St. Xavier’s College Mumbai. I extend my thanks to Impri for the opportunity to write this article and to Ms. Mallika and Ms. Stuti for their feedback.  

References

1. https://www.kudumbashree.org/ 
2. John, J. & Kerala Development Society. (2009). A study on Kudumbashree project: A Poverty Eradication Programme in Kerala: Performance, Impact and Lessons for other States. https://kudumbashree.org/storage/files/ort1w_kshree%20study%20report2.pdf 
3.  RAGHAVAN, V. P. & DCSMAT BUSINESS SCHOOL. (2000). SOCIAL ACTION, GENDER EQUITY AND EMPOWERMENT: THE CASE OF KUDUMBASHREE PROJECTS IN KERALA. In DCSMAT BUSINESS SCHOOL. http://www.igidr.ac.in/conf/oldmoney/mfc_10/V%20P%20Raghavan_submission_48.pdf 
4. Kudumbashree Mission in Kerala, India – Participedia. (n.d.). https://participedia.net/case/6312 
5. K,A Shaji. (2023, May 18). 25 years of Kudumbashree: How this Kerala women’s collective intervened to empower women, fight poverty. Down to Earth. https://www.downtoearth.org.in/governance/25-years-of-kudumbashree-how-this-kerala-women-s-collective-intervened-to-empower-women-fight-poverty-89430 
6. Jacob, J. (2022, May 18). How Kudumbashree Mission empowered women in Kerala. India Today. https://www.indiatoday.in/india-today-insight/story/how-kudumbashree-mission-empowered-women-in-kerala-1950980-2022-05-18 
7. Narendran, A. (2022, October 3). 25 years of Kudumbashree – Reflections and Possibilities. TheProbe. https://theprobe.in/stories/25-years-of-kudumbashree-reflections-and-possibilities/ 

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