Microfinance and Sustainable Livelihood Enhancement in Himalayan Regions: An Empirical Study of Self-help Groups in Uttarakhand, India

Abstract

Microfinance has emerged as a powerful tool for promoting financial inclusion and sustainable livelihoods, particularly in geographically challenging regions such as the Himalayan state of Uttarakhand. This study examines microfinance's role via SHGs under NRLM/USRLM in promoting sustainable livelihoods in Uttarakhand's hilly areas. Using government data from USRLM and PIB, it applies t-tests, correlations, ANOVA, and chi-square to demonstrate significant positive effects on household income, savings and assets. The findings highlight strong multiplier effects and suggest policy interventions for strengthening financial access, skill development and market linkage. It shows Uttarakhand's 4.92% share of national mobilized households despite terrain challenges, with multipliers up to 2.5x on income from CIF inputs.