Swarnajayanti Gram Swarozgar Yojana (SGSY) was a self-employment programme started by the Government of India. It was launched on April 1st, 1991 to provide the sustainable source of income to the poor people living in villages and urban areas. 

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Swarnajayanti gram swarozgar yojana features

It provides the employment by forming various self-help groups. These groups help in identifying the potential skill of every individual and polish it so that it can help in earning employment and become a source of income.

Detailed Review Of Policy

  • Training of Rural Youth for Self Employment (TRYSEM)
  • Supply of Improved Toolkits to Rural Artisans (SITRA)
  • Million Wells Scheme (MWS)

It was made mainly be reconstructing IRDP, which was used for employment way before the SGSY came into the picture. However, IRDP was not much effective and was not reaching the target and that is why it was reconstructed.

swarnajayanti gram swarozgar yojana details

Various Non-Governmental Organisations, Banks and Financial Institutions provide funds for SGSY to help in its growth and demolish poverty and unemployment which are the two main reasons for a country being called under-developed.

From the time the policy launched, over 2.2 million self-help groups have been formed and provided employability to over 6.712 million people with the fund of ₹14,403 Crores (US$2.2 billion) from all over.


The main objective of this programme was to provide employability through the skills development process to help the families below the poverty line to live a better life and not beg and die. 

However, it also created a link between credit, marketing, infrastructure, and building the capacity of the poor families or individuals. One of its goals is to establish small entrepreneurs in rural areas to provide employability to poor.

It helps to upgrade the technology and ensures the skill development for means of income.  SGSY also has fixed quota system for SC/ST, women and children to help in an establishment. Central has 75% of the funds provided and a state has 25% access to the funds allocated to the SGSY.

Time Frame:

The SGSY has many different stages to pass. It differs from one district to another district and is not the same and also state to another state depending upon the distribution and capability.

Agencies for implementation:

It is implemented by District Rural Development Agency along with Panchayati Raj Institutions, banks and Non-Governmental Organisations.


50% of the fund is for SC/ST, 40% for women and 3% is for the disabled person. For the North-Eastern States, shares by the centre government are total of 90%.

Funds are dictated by State government but are only approved by the government in a centre. Funds are given to the DRDA’s only and then allotted for training, infrastructure and activities that are economic for 10%.

Panchayati Raj Institution and Non-Governmental Agencies- Role:

  • It is for the identification of the poor so that no one else can misuse the facilities.
  • Building and training poor and needy people to save them from extreme poverty.
  • It also links SHG’s with the Banks for better support.
  • It helps in monitoring and auditing.
Implementation of the process:

It organises the rural and urban poor into SHG’s. Then assist them to take up activities that are economic. Then it does activity clusters which help in skill development. Next step is training, and then does the provision of income assets.

swarnajayanti gram swarozgar yojana objectives photo

Promotion and Formation of the Groups for Training:

The main emphasis of this program concentrates on a group rather than individuals. It also takes help of Non-Governmental Organisations and CGO’s to help to form a group. There are 5 people if it is a group of disabled people. But in a group of abled individuals, there are 10-20 people.

A problem in the formation of a group:

Transparency in the selection and formation of the group is one of the main problems. But at times, actually many times, new NGO’s are appointed for the implementation of the program. And they also do the work just to complete their target but not to increase the growth.

How groups function:

Groups are learning oriented, as the main objective is to learn and polish the skills. Bank accounts of a group are opened to make them understand the value of saving money for future. SGH meetings are held and books are maintained for auditing purpose. And savings are also added.

Problems in starting of micro-enterprises in rural areas:

It is purely supply driven and not demand driven. Non-Interests activities training are provided and this leads to lack of quality training. Raw materials are not provided because there is so much difficulty in the procurement of raw materials.

Backfoot Problems:

There may be problems between the various or 2 NGO’s that created the SHG. At times, banks and government do not co-operate to take the activities further which results in lagging of process and waste of funds and time.

Main leading states:

Few of the states in India are poorer than others and also the main beneficiary of this policy. These states are-

  • Andhra Pradesh
  • Uttar Pradesh
  • Maharashtra
  • Bihar
  • Tamil Nadu

These are the main 5 states that take profit as in growth in employability from the policy.

Main Strength:

It is targeted towards the population that is below the poverty line and not above. The focus is on women more, supporting a woman means uplifting the whole family regardless of poor and rich, women should always be supported and never kept backwards. It also supports self-employment.

about swarna jayanti gram swarozgar yojana photos

If one develops a skill, he or she can easily find the suitable job and medium to earn money for self and the family. And it also gives a kick to small business and businessmen.


Some of the main weaknesses are as follows-

  • Lack of training
  • Biased Selection Process
  • Mitigation risk
  • Grievance Mechanism
  • Lack of accountability
  • Lack of Transparency
  • Lack of resources
  • Inexperienced of non-governmental organisations.
  • Monitoring of activities
  • More banks in rural areas
  • Proper development problems
  • Better trainings
  • Selection of better NGO’s