Self-Help Groups (SHGs) have become an important instrument for promoting financial inclusion and improving the socio-economic well-being of rural households. Beyond providing access to savings and credit, SHGs can help women develop financial awareness, participate in household decisions, build confidence and become more economically independent. The present study examines the role of SHGs in promoting financial inclusion, women empowerment and socio-economic development among SHG members.

The study is based on primary data collected from 180 SHG members through a structured questionnaire in Shimla district of Himachal Pradesh. The data were analysed using descriptive statistics, Cronbach’s Alpha, Pearson correlation and linear regression. The reliability results indicate good internal consistency of the scales used in the study. The descriptive findings show that respondents generally have positive perceptions regarding the contribution of SHGs to financial inclusion, women empowerment and socio-economic development. The correlation analysis indicates significant positive relationships among the major study variables. Further, the regression results show that financial inclusion significantly predicts women empowerment as well as socio-economic development. The findings also indicate that women empowerment and socio-economic development are closely associated with overall satisfaction among SHG members. Overall, the study suggests that SHGs can play a meaningful role beyond facilitating access to financial services by supporting women's empowerment and improving the socio-economic conditions of rural households. The study highlights the need to strengthen SHG activities related to financial literacy, access to formal financial services, income-generating opportunities and capacity building to enhance their contribution to rural development.