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DAY-NRLM: Transforming Rural Livelihoods Through Women’s Empowerment 2017 – IMPRI Impact And Policy Research Institute

May 1, 2025 Modified date: May 1, 2025

Policy Update

Sreeja Mukherjee

Background

The Deendayal Antyodaya Yojana : National Rural Livelihoods Mission (DAY-NRLM) is a flagship poverty alleviation program implemented by the Ministry of Rural Development, Government of India. Launched in June 2011, it emerged as a restructured version of the erstwhile Swarnajayanti Grameen Swarojgar Yojana (SGSY) (PIB, 2024; MyScheme, 2023). The genesis of DAY-NRLM was rooted in experiences from successful community-based projects in states like Andhra Pradesh, Telangana, Bihar, Kerala, and Tamil Nadu. The program was renamed from NRLM to DAY-NRLM on March 29, 2016 (MoRD, 2017).

The primary objective of DAY-NRLM is “to reduce poverty by enabling poor rural households to access gainful self-employment and skilled wage employment opportunities, resulting in sustainable improvement in their livelihoods” (MoRD, 2017, p. 1). The mission is founded on the core belief that “the poor possess inherent capabilities to overcome poverty when provided with appropriate platforms and support structures” (Aajeevika, 2023). It aims to mobilize rural poor households into Self-Help Groups (SHGs) and continuously nurture them until they achieve appreciable income increases over time.

The program operates with a phased approach, targeting around 10 crore rural poor households by 2022-23 across 600 districts, 6,000 blocks, 2.5 lakh Gram Panchayats, and 6 lakh villages in India (PIB, 2024; DARPG, 2022). DAY-NRLM is a comprehensive initiative that empowers rural women and enhances their livelihoods through community institutions providing crucial financial, technical, and marketing resources.

DAY-NRLM: Transforming Rural Livelihoods Through Women's Empowerment 2017 3

Fig.1. https://nrlm.gov.in/outerReportAction.do?methodName=showIndex#gsc.tab=0

Functioning

DAY-NRLM functions through four core components as outlined in multiple government sources (MoRD, 2017; DARPG, 2022):

Social Mobilization and Institution Building: The program identifies rural poor households and organizes them into Self-Help Groups (SHGs), with a preference for women members. These SHGs follow “Pancha Sutras” – regular meetings, regular savings, regular internal lending, regular recoveries, and maintenance of proper books of accounts (MoRD, 2017, p. 10). The SHGs are further federated at village/Gram Panchayat level and block level to reduce dependence on external agencies and provide voice and resources to the poor.
Financial Inclusion: DAY-NRLM facilitates bank linkages for SHGs through:
- Opening savings accounts for all beneficiaries, SHGs, and their federations
- Providing a Revolving Fund (₹10,000-15,000) to eligible SHGs as an incentive to inculcate thrift habits
- Offering Community Investment Support Fund (CIF) in intensive blocks through federations
- Extending interest subvention to cover the difference between the bank lending rate and 7% on credits up to ₹3 lakhs per SHG
- Additional 3% interest subvention for prompt repayment in 250 identified districts (MoRD, 2017, p. 9)
Sustainable Livelihoods Promotion: The mission supports both farm and non-farm livelihoods:
- Identification of major livelihood activities in villages
- Diversification of livelihoods to stabilize and enhance existing income sources
- Infrastructure and marketing support (market intelligence, processing, storage, packaging)
- Skill development and placement services for rural youth through Rural Self Employment Training Institutes (RSETIs)
- Post-placement support through skill upgradation (MoRD, 2017, pp. 9-10; MyScheme, 2023)
Social Inclusion and Convergence: DAY-NRLM emphasizes convergence with other poverty reduction programs like MGNREGS, rural housing, drinking water and sanitation, and watershed management programs to ensure comprehensive development of rural communities (MoRD, 2017, p. 7; DARPG, 2022).

The implementation structure of DAY-NRLM consists of:

National Mission Management Unit (NMMU) at the central level
State Rural Livelihood Missions (SRLMs) at state levels
District Mission Management Units (DMMUs) at district levels
Block Mission Management Units (BMMUs) at block levels (MoRD, 2017, pp. 3-5)

The program functions with strong coordination mechanisms through committees at various levels:

Central Level Coordination Committee (CLCC) at the national level
State Level Bankers Committee (SLBC) at the state level
District Level Coordination Committee under the chairmanship of the District Collector (MoRD, 2017, p. 6; DARPG, 2022)

Funding for DAY-NRLM is shared between the center and states in the ratio of 75:25, with special category states having a 90:10 ratio. Funds flow from NRLM to SRLM and then to districts based on annual action plans (MoRD, 2017, p. 6).

Performance

As of June 30, 2024, DAY-NRLM has achieved notable progress in its implementation across the country (except Delhi and Chandigarh):

Coverage: Implemented in 7,135 blocks in 742 districts across 28 States and 6 UTs
Mobilization: 10.05 crore women organized into more than 90.86 lakh SHGs (PIB, 2024)

According to data available on the Government Open Data Platform, the mission has systematically tracked its beneficiaries across social categories down to the village level, allowing for more targeted interventions and impact assessment (Data.gov.in, 2023).

The mission has successfully created a network of community institutions that provide crucial financial, technical, and marketing resources to rural women. It has enhanced financial inclusion by offering affordable banking services, particularly in remote areas, through digital finance and training SHG women as Banking Correspondent Sakhis (PIB, 2024).

DAY-NRLM has supported both farm and non-farm livelihoods, empowering women farmers with agro-ecological practices and market access. It has promoted micro-enterprises such as handicrafts and food processing through initiatives like the Start-up Village Entrepreneurship Program (SVEP) and Aajeevika Gramin Express Yojana (AGEY) (PIB, 2024; MyScheme, 2023).

The engagement of SHG members as trained Community Resource Persons (CRPs) and the provision of favorable credit terms via the “Women Enterprise Acceleration Fund (WEAF)” have bolstered women’s economic empowerment and strengthened the rural economy (PIB, 2024).

Impact

DAY-NRLM has demonstrated significant impact in various dimensions:

Financial Empowerment: By bringing 10.05 crore women into the formal financial system through SHGs (PIB, 2024), the mission has dramatically expanded financial inclusion in rural areas. The women-centric approach has transformed household economics in participating communities, with women gaining greater control over financial decisions.
Livelihood Enhancement: Through skill development, enterprise support, and market linkages, DAY-NRLM has helped diversify and strengthen rural livelihoods. The program has particularly empowered women farmers with agro-ecological practices and facilitated market access for local products (PIB, 2024; Aajeevika, 2023).
Social Empowerment: Beyond economic benefits, DAY-NRLM has enhanced women’s agency and voice in community affairs. The federation structure has created platforms for collective action on social issues, leading to improvements in areas like health, education, and sanitation (MoRD, 2017; DARPG, 2022).
Institutional Development: The mission has fostered robust community institutions that are increasingly self-reliant. The development of social capital through Community Resource Persons (CRPs) has created sustainable local support systems (PIB, 2024; Aajeevika, 2023).
Convergence Benefits: By linking SHGs with various government schemes, DAY-NRLM has improved access to public entitlements and services. This has multiplied the impact of government programs in rural areas (MoRD, 2017, p. 7; DARPG, 2022).

The program’s focus on Social Behavior Change Communication (SBCC) has facilitated access to other government schemes like Swachh Bharat Mission and Poshan Abhiyan, ensuring multi-sectoral convergence for holistic rural development (PIB, 2024).

Emerging Issues

Despite its achievements, several issues have emerged in the implementation of DAY-NRLM:

Regional Disparities:
- Uneven implementation across states and regions
- Suggestion: Develop state-specific strategies addressing local challenges and opportunities
Credit Access Barriers:
- Some SHGs still face difficulties in accessing adequate and timely credit
- Suggestion: Strengthen bank linkages through dedicated financial literacy programs and simplified lending procedures (MoRD, 2017, p. 8; MyScheme, 2023)
Market Linkage Challenges:
- Limited market access for SHG products, especially in remote areas
- Suggestion: Develop digital marketplaces and strengthen value chains for SHG products
Capacity Building Gaps:
- Varied quality of training and capacity building across regions
- Suggestion: Standardize training modules and strengthen the Community Resource Person model (PIB, 2024; Aajeevika, 2023)
Sustainability Concerns:
- Some SHGs remain dependent on external support
- Suggestion: Develop graduation pathways for mature SHGs to become self-sustaining
Monitoring Challenges:
- Need for more robust data collection and impact assessment
- Suggestion: Strengthen MIS systems and incorporate regular impact studies (MoRD, 2017, p. 12; Data.gov.in, 2023)
Convergence Implementation:
- Coordination challenges between different departments and schemes
- Suggestion: Create stronger institutional mechanisms for convergence at all levels (MoRD, 2017, p. 7; DARPG, 2022)

Way Forward

As DAY-NRLM continues to evolve, several strategic directions can further enhance its impact:

Deepening Financial Inclusion: Expanding beyond credit to include comprehensive financial services like insurance, pension, and investment options for SHG members.
Digital Transformation: Leveraging technology for financial transactions, market linkages, and capacity building to reach more remote communities and improve efficiency.
Enterprise Development: Shifting focus from livelihood support to enterprise development by creating stronger market linkages, value chain integration, and business development services.
Climate Resilience: Incorporating climate-adaptive practices in livelihood models to ensure sustainability in the face of climate change.
Knowledge Management: Systematically documenting and disseminating best practices to accelerate learning and adaptation across states.
Leadership Development: Strengthening leadership capabilities within SHG federations to ensure their long-term sustainability and impact.
Policy Integration: Ensuring that DAY-NRLM achievements inform broader rural development policy and programs, creating an enabling environment for sustainable rural livelihoods.

DAY-NRLM represents a paradigm shift in rural poverty alleviation by focusing on community institutions and women’s empowerment. Its continued evolution and strengthening will be crucial for building a new India with reduced rural poverty and empowered communities.

Selected References and Important Links

Aajeevika. (2023). About Values. Ministry of Rural Development, Government of India. https://aajeevika.gov.in/about/values

Data.gov.in. (2023). National Rural Livelihoods Mission. Government Open Data Platform India. https://www.data.gov.in/catalog/national-rural-livelihoods-mission

Department of Administrative Reforms and Public Grievances (DARPG). (2022). National Rural Livelihood Mission. Government of India. https://darpg.gov.in/sites/default/files/National%20Rural%20Livilihood%20Mission.pdf

Ministry of Rural Development (MoRD). (2017). National Rural Livelihood Mission (NRLM): Manual for District Level Functionaries. Government of India.

MyScheme. (2023). Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM). Government of India. https://www.myscheme.gov.in/schemes/day-nrlm#faqs

Press Information Bureau (PIB). (2024, August 9). Achievements under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission. Ministry of Rural Development, Government of India. https://pib.gov.in/PressReleasePage.aspx?PRID=2043778

National Rural Livelihoods Mission. (n.d.). Official Website. Ministry of Rural Development, Government of India. http://nrlm.gov.in

Reserve Bank of India. (n.d.). Master Circular on DAY-NRLM. https://rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=9968

Appendices.