Union Budget 2026 vis-a-vis Women-led Self Help Groups in Northeast India: A comparative Policy Perspective

The Union Budget 2026 marks a significant change in India’s development by prioritizing women led Self Help Groups (SHGs) inclusive economic growth. SHGs have served as a national tool for poverty alleviation and empowerment of women, their significance in Northeast India is profound. Northeast India has notably higher participation of women in community-based economic initiatives. Welfare policies can have substantial impact when they go hand in hand with local socio-cultural and geographical contexts.

Through initiatives such as SHE-Marts, Grameen Credit core and other financial schemes, Budget 2026 enhances the SHGs framework. This article explores the outcomes of these initiatives for women-led SHGs in the Northeast Indian states in comparison to the other Indian states.

Women, SHGs and the Northeast advantage

In Northeast India, SHGs are more than just financial groups, they are important socio-economic institutions. These SHGs form an integral part of the community and local governance. The involvement of women in SHGs across states like Assam, Meghalaya, Manipur and Nagaland has given successful results over the years. These groups have integrated traditional practices of collective labour, social capital and models of community ownership.

In Northeast India, SHGs operate as platforms for:

1. Microfinance and savings mobilization

2. Skill development and vocational training

3. Women led entrepreneurship

4. Social advocacy and leadership

5. Cultural preservation through traditional crafts

Unlike many areas in India where SHGs mainly focus on providing credit, the SHGs in Northeast India blend economic activities with identity, culture and community resilience.

Union Budget 2026: Important Schemes for SHGs

1. SHE-Marts and market integration

The launch and growth of SHE-Marts in Budget 2026 are particularly significant for Northeast India. These organized marketplaces offer women SHGs formal access to markets for:

● Handloom and textile goods

● Local food processing businesses

● Forest products and minor produce

In the Northeast, where women are key players in weaving, bamboo crafts and forest related jobs, SHE-Marts help close the gap between production and formal value chains. By combining finance, aggregation, branding and marketing, these initiatives enhance women’s economic power and build social connections within the community. While, in other regions of India, SHE-Marts mainly assist urban or semi-urban women entrepreneurs, in the Northeast, they act as vital economic support for rural areas.

2. Grameen Credit Score: Changing Financial Access

One of the most profound announcements in Budget 2026 is the plan for Public Sector Banks to create a Grameen Credit Score system. This framework examines credit worthiness based on

● SHG participation

● Savings Habits

● Repayment records

● Community involvement

For SHG members in Northeast India, many of whom do not have formal collateral, this initiative tackles a fundamental exclusion from institutional finance. In contrast to other Indian regions, where credit access is already more established, the Grameen Credit Score could help credit available in remote and economically disadvantaged regions of the Northeast.

3. Learning from NERLP: A solid foundation

The North East Rural Livelihood Project (NERLP), supported by the World Bank and carried out by the Ministry of Development of North Eastern Region (MDoNER), established the basis for current policy progress. Even though it ended in 2019, it had notable effects. The key achievements include:

1. Skill training for 10,462 young people

2. Support for 2,92,889 households

3. Creation of 28,154 Self-Help Groups (SHGs) and 1,212 Village Federations

4. Savings accounts for 97% of SHG members, totalling INR 60.51 crore in savings

5. Bank connections for 5,535 SHGs with average loans of INR 1.02 lakh per SHG

(The above stats were taken from the speech made by the Union Minister of State for Development of North Eastern Region Dr. Sukanta Majumdar in Rajya Sabha sourced from PIB)

These results show that when financial inclusion, skill development and institutional backing come together, women-led SHGs can drive local growth. The 2026 budget builds on this foundation by expanding similar strategies across the country while adapting them to local requirements.

State-Specific Innovations in the Northeast

The variety of SHG-led economic models in the Northeast shows their flexibility. Wherein, in Assam women SHGs have revived the Assam Silk industry and broadened handicraft markets. Moreover, SHGs in Meghalaya are focusing on organic farming practices and eco-tourism by utilizing natural resources. Furthermore, in Manipur SHGs have contributed to economic activities by offering subsidised loans through microfinance. While, in Nagaland self help groups have been safeguarding indigenous knowledge while promoting sustainable agriculture. Communities in Tripura have been developing bamboo and cane-based businesses through SHGs initiatives. An example of community-driven tourism can be seen from Mizoram through robust economic initiatives taken by SHGs. Mizo communities have been generating sustainable income from handicraft business. States such as Arunachal Pradesh and Sikkim have been leveraging textile and organic farming businesses through SHGs. This regional variety stands in contrast to more uniform SHG activities seen in other regions of India, highlighting the importance of implementing policies that cater to regional differences.

Although actual progress has been made, SHGs in the Northeast encounter certain structural challenges. The region’s isolation led to restricted access to formal credit. Moreover, inadequate infrastructure in turn makes it difficult for market connections. There are several shortcomings in financial management and digital resources. One of the major areas of concern is the political unrest in some parts of the Northeast that hinders coordination among the groups. The Union Budget 2026 aims to tackle these challenges through financial inclusion and market integration. A stronger execution and institutional backing at the grassroots level is the need of the hour.

Strengthening SHGs with Complementary Schemes

There are several ongoing initiatives that support the Budget 2026 provisions for the Northeastern Indian region:

1. DAY-NRLM: This includes revolving funds, CIF and training from entrepreneurship.

2. Van Dhan Vikas Yojana: This focuses on adding value to the forest products for tribal women.

3. PM-DevINE: This initiative promotes livelihood projects for women and youth.

4. Women Enterprise Development Scheme (WEDS) by NEDFi.

5. Atma Nirbhar Bagwani Yojana (in Arunachal Pradesh).

6. The SHG-Bank Linkage Programme is particularly effective in Assam and Sikkim.

All schemes work together to form a comprehensive support system that not only generates income but also promotes economic independence and social empowerment.

Conclusion:

The Union Budget 2026 is a pivotal moment for women-led SHGs in Northeast India. It acknowledges the region’s unique socio-economic context and builds on successful previous efforts, enhancing opportunities for economic independence and cultural preservation. The real success of these schemes depends not just on funding but on effective implementation and lasting institutional involvement. When women in the Northeast earn, lead and maintain their cultural heritage through SHGs, they contribute to regional development and reshape India’s narrative of inclusive growth.