Introduction
The National Rural Livelihoods Mission (NRLM), popularly known as Aajeevika, is the flagship rural poverty alleviation programme of the Government of India aimed at reducing poverty by promoting diversified and sustainable livelihood opportunities for rural poor households through community institutions, financial inclusion and skill development.
Launched in 2011, NRLM seeks to mobilise poor rural households, particularly women, into Self-Help Groups (SHGs) and their federations, enabling them to access credit, build enterprises and improve their socio-economic status.
The scheme is implemented by the Ministry of Rural Development (MoRD).
Background
- Launched: June 2011
- Implementing Ministry: Ministry of Rural Development
- Replaced: Swarnjayanti Gram Swarozgar Yojana (SGSY)
- Funding Pattern:
- Centre : State = 60:40 (General States)
- 90:10 (North Eastern and Himalayan States)
- 100% Central Funding for Union Territories without Legislature
Vision
To enable every rural poor household to achieve sustainable livelihoods, improved income, financial inclusion and enhanced quality of life through strong community institutions and access to economic opportunities.
Objectives
- Mobilise rural poor households into Self-Help Groups (SHGs).
- Promote women-led community institutions.
- Enhance access to institutional credit and financial services.
- Strengthen livelihood diversification.
- Promote self-employment and entrepreneurship.
- Improve skill development and wage employment.
- Reduce dependence on informal credit sources.
- Empower vulnerable sections, especially women, SCs, STs, minorities and persons with disabilities.
Key Features
Universal Social Mobilisation
NRLM follows a demand-driven and participatory approach, aiming to mobilise at least one woman from every identified poor rural household into an SHG.
Self-Help Groups (SHGs)
- SHGs generally consist of 10–20 women (smaller groups may be formed in difficult areas).
- Members save regularly, access credit and undertake livelihood activities collectively.
- SHGs are federated into Village Organisations (VOs) and Cluster Level Federations (CLFs) for better governance and sustainability.
Financial Inclusion
NRLM facilitates:
- Bank account opening.
- Bank credit linkage.
- Interest subvention on eligible loans.
- Financial literacy.
- Insurance and pension coverage.
Revolving Fund (RF)
Financial assistance is provided to mature SHGs to strengthen internal lending and enhance access to credit.
Community Investment Fund (CIF)
Funds are provided to Village Organisations to support livelihood activities, enterprise development and income generation among SHG members.
Major Components
Financial Inclusion
- SHG–Bank Linkage Programme.
- Interest Subvention Scheme.
- Financial literacy.
- Access to formal banking services.
Livelihood Promotion
Support is provided for:
- Agriculture.
- Livestock.
- Fisheries.
- Non-farm enterprises.
- Rural micro-enterprises.
- Producer collectives.
Skill Development
Under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), rural youth are provided market-oriented skill training and placement opportunities.
Rural Self-Employment
NRLM promotes entrepreneurship through:
- Capacity building.
- Enterprise financing.
- Value chain development.
- Producer Groups (PGs).
- Farmer Producer Organisations (FPOs).
Social Development
The mission also addresses:
- Nutrition.
- Health.
- Gender equality.
- Education.
- Social inclusion.
- Financial awareness.
Sub-Schemes under NRLM
Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
In 2015, NRLM was renamed as Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).
Lakhpati Didi Initiative
The initiative aims to enable women SHG members to earn a sustainable annual household income of at least ₹1 lakh through diversified livelihood activities, enterprise development and improved market access.
SARAS Initiative
Supports marketing of SHG products through exhibitions, fairs and digital platforms, enhancing market linkages and income opportunities.
Institutional Framework
The mission is implemented through:
- National Mission Management Unit (NMMU).
- State Rural Livelihood Missions (SRLMs).
- District Mission Management Units.
- Block Mission Management Units.
- Village Organisations (VOs).
- Cluster Level Federations (CLFs).
- Self-Help Groups (SHGs).
Achievements
- Mobilisation of over 10 crore women into SHGs across the country.
- Significant increase in bank credit to SHGs.
- Expansion of women-led rural enterprises.
- Improved financial inclusion and savings.
- Enhanced participation of women in local governance and decision-making.
- Promotion of sustainable livelihoods through agriculture, livestock and non-farm sectors.
Challenges
- Regional disparities in implementation.
- Limited market access for rural enterprises.
- Capacity constraints of SHGs in some areas.
- Dependence on low-value livelihood activities.
- Delays in bank credit and fund disbursement.
- Need for greater digital and financial literacy.
- Climate risks affecting agriculture-based livelihoods.
Significance
NRLM contributes to:
- Poverty reduction.
- Women’s economic empowerment.
- Rural entrepreneurship.
- Financial inclusion.
- Employment generation.
- Inclusive rural development.
- Achievement of SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities).
Way Forward
- Strengthen market linkages and branding for SHG products.
- Promote digital financial inclusion and e-commerce.
- Diversify livelihoods beyond agriculture.
- Enhance skill development aligned with emerging sectors.
- Improve access to affordable credit and insurance.
- Encourage value addition and rural enterprises.
- Strengthen convergence with schemes such as MGNREGA, PMAY-G, PM-KISAN, PM Vishwakarma, and National Rural Economic Transformation Project (NRETP).
Conclusion
The National Rural Livelihoods Mission (DAY-NRLM) is one of India’s largest community-based poverty alleviation programmes. By organising rural poor households—especially women—into strong community institutions, improving access to finance and promoting sustainable livelihoods, it has transformed rural socio-economic development. Strengthening enterprise development, market access, digital inclusion and climate-resilient livelihoods will further enhance its role in achieving inclusive and sustainable rural growth.
