Lakhpati Didi scheme in focus ahead of Budget 2024; key things to know

The Lakhpati Didi scheme, an initiative aimed at increasing the number of women with an annual household income exceeding ₹1,00,000, remains under focus ahead of the rollout of Union Budget 2024 this month.

A revamped version of the scheme, with links to sustainable business models, holistic skill development, and market linkages, can give a boost to rural women’s economic empowerment, according to experts who spoke to Livemint.

First, who is a ‘Lakhpati Didi’?

A Lakhpati Didi is a member of a Self-Help Group who earns an annual household income of more than ₹1 lakh per year or has an average income of ₹10,000 per month or more. At least four agricultural seasons are taken into account to calculate the annual income.

What is the Lakhpati Didi scheme?

Prime Minister Narendra Modi announced the Lakhpati Didi Scheme on August 15, 2023, while addressing the nation. He said that the government is working with Women’s Self Help Groups (SHGs), aiming to create 20 million ‘Lakhpati Didis’ in villages.

The scheme is designed to upskill women by providing training in several practical skills aligning with industry demands. It is aimed at enabling women to enter various sectors and explore diverse opportunities.

In the Interim Budget 2024, Finance Minister Nirmala Sitharaman announced that the government is planning to increase the target under this scheme to 30 million from the previous 20 million.

"Some 83 lakh self-help groups are transforming the rural landscape. They are an inspiration to others. Buoyed by their success, it has been decided to enhance the target for the Lakhpati Didi scheme from 2 crore to 3 crore, " Sitharaman said in the Interim Budget speech.

What’s expected in Budget 2024?

The revised version of the Lakhpati Didi scheme is widely awaited, experts reportedly said, adding that the updated scheme should push beyond just income generation and cover several other sustainable targets.

While speaking to Mint, Ridhima Kansal, director of Rosemoore, suggested that the expansion of the scheme could be potentially focused on sustainable skill development and enhanced market linkages. She emphasised on increasing the allocations for digital literacy programs empowering rural women to tap into e-commerce opportunities. The integration of the scheme with initiatives like the National Rural Livelihood Mission can lead to improved economic participation, she reportedly said.

The report further said that Mamta Shekhawat, founder of Gradding.com, emphasised on the significance of the revised scheme in elevating women's livelihood programs by promoting initiatives led by women, providing social security benefits for future stability, and enhancing market influence.

According to Pooja Choudhary, Founder of Lavanya The Label, the scheme holds the potential to improve rural women's financial inclusion. It can act as an ideal gender-inclusive economic development program for the world to follow, she told the newspaper.

Notably, Finance Minister Nirmala Sitharaman will present the Union Budget on July 23. The Budget Session of the Parliament will start a day earlier, on July 22, and continue till August 12.