SHE-Marts aim to address the “missing market” constraining SHG enterprises by creating structured market access—their impact will hinge on how effectively they integrate demand, capabilities, and value chains
The Union Budget 2026–27 introduced a new initiative—Self-Help Entrepreneur (SHE) Marts—a continuation of India’s long-running effort to promote women-led livelihoods. The aim is to empower women by creating community-owned retail outlets in every district that enable SHG products to access wider markets and transition towards enterprise ownership. For this, SHE-Marts will act as organised, cluster-level platforms to bridge the gap between rural production and consumer sales.
For over a decade, India has invested heavily in mobilising rural women into SHGs under the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY–NRLM). It is the world’s largest social mobilisation programme, federating millions of women in SHGs and encouraging group-based savings and livelihoods. While the programme has delivered measurable gains in financial inclusion, livelihood diversification and social capital among women, multiple studies note that translating these gains into sustainable and scalable enterprises remains constrained by gaps in market access, value chains, enterprise capabilities and mentorship.
SHE-Marts mark a shift as the programme enters its next phase—moving from credit-led livelihoods towards enterprise ownership.
SHE-Marts mark a shift as the programme enters its next phase—moving from credit-led livelihoods towards enterprise ownership. Announced as part of a broader push to “help women take the next step from credit-led livelihoods to being owners of enterprises”, it aims to create structured market access through cluster-level retail platforms, with a focus on market integration rather than just production support. Innovative financing instruments will support the initiative, aiming to reach 10 million beneficiaries. Reflecting this ambition, the budget allocation for NRLM in 2026–27 increased by 20 percent compared to 2025–26.
Women-led enterprises in India are predominantly rural: the Sixth Economic Census indicates that over 65 percent of such establishments are located in rural areas. These enterprises face systemic barriers, including limited access to working capital, a disproportionate burden of care and domestic responsibilities, and constraints on women’s mobility. As a result, most are single-person microenterprises. A recent World Bank study finds that more than 85 percent of women-owned rural non-farm enterprises are concentrated in five subsectors—retail trade, apparel manufacturing, food products, food and beverage services, and the handloom sector. Together, these enterprises represent a significant opportunity to drive long-term economic growth through targeted interventions.
One such intervention is the Lakhpati Didi initiative under NRLM, launched in 2023, which aims to empower women in SHGs to earn a minimum household income of INR 1 lakh per annum through training and capacity building, improved access to finance, and livelihood diversification. The NRLM architecture, however, has historically focused more on addressing supply-side barriers such as access to credit, training, and production rather than the demand side. The result is a structural imbalance: an expanding base of producers without a commensurate expansion of markets. Studies on SHG enterprises show that sales often remain confined to nearby markets, fairs, and occasional exhibitions, which are largely informal, low-value, locally confined, and dependent on intermittent demand.
Studies on SHG enterprises show that sales often remain confined to nearby markets, fairs, and occasional exhibitions, which are largely informal, low-value, locally confined, and dependent on intermittent demand.
Therefore, India’s rural enterprise ecosystem faces a clear market gap. Though there has been access to urban and digital markets, these enterprises face challenges such as weak branding, limited distribution, and capability gaps. NRLM-linked policy documents recognise that value-chain development, aggregation, and market linkages are essential for women-led enterprises to move beyond subsistence, scale, and capture higher value. In this context, SHE-Marts, which build on the impetus provided by the Lakhpati Didi initiative, shift attention to market systems, such as logistical access, enterprise capabilities, and an integrated ecosystem that is needed to sustain enterprise growth.
Market linkages and business mentoring remain among the most neglected areas across entrepreneurship support schemes run by central and state governments, a 2022 study by MicroSave Consulting shows. This gap disproportionately affects women entrepreneurs, who already face constraints arising from social norms and weak networks. Policy frameworks under the NRLM ecosystem increasingly recognise the need for appropriate institutional support to bridge the gap between production and enterprise growth, anchoring women SHGs in more sustainable, market-oriented pathways.
Some existing initiatives in India offer important lessons on what works—and what does not—in linking women-led enterprises to markets. For example, platforms such as Amazon Saheli demonstrate how digital marketplaces can expand customer access by improving discoverability, logistics, and branding for women entrepreneurs. The programme also provides onboarding support, free imaging and cataloguing at launch, as well as mentorship for online selling.
Barriers such as digital literacy gaps, compliance requirements, and logistics dependencies limit the ability of a large proportion of SHGs to engage effectively in online marketplaces.
Although Amazon Saheli has supported 1.2 lakh women entrepreneurs in accessing national and international markets—contributing to an average 45 percent increase in income for participating sellers—participation remains uneven. Barriers such as digital literacy gaps, compliance requirements, and logistics dependencies limit the ability of a large proportion of SHGs to engage effectively in online marketplaces.
On the other hand, Kudumbashree, the State Rural Livelihoods Mission of Kerala, illustrates the importance of strong community networks, convergence with local governments, and integration with procurement systems in enabling more stable and scalable enterprise outcomes. With 4.6 million women mobilised into 317 thousand neighbourhood groups (NHGs), the programme is arguably the largest network of female collectives in India and among the largest in the world. The model underscores that market access depends as much on community-driven support as on infrastructure.
The Government e-Marketplace (GeM) portal, an online public procurement platform, hosts the Saras Collection, a dedicated section for SHG-made utility products, including handicrafts, handloom and textiles, office accessories, grocery and pantry items, and personal care products. The initiative is intended to integrate SHG producers into formal procurement systems and expand their market visibility and access; however, uptake remains limited, and recent figures are not publicly available. Reports indicate that a lack of awareness of public procurement policies, along with complex registration and categorisation procedures, are key barriers that discourage participation by women entrepreneurs.
SHE-Marts present a significant opportunity not only to strengthen women’s enterprises but also to catalyse the development of local markets and rural economies.
For SHE-Marts, experiences from these models offer several crucial lessons. First, while digital platforms can extend market reach, they do not address the foundational constraints faced by most rural enterprises; they are more effective when backed by strong local institutions rather than operating as standalone platforms. Second, SHE-Marts should adopt a hybrid approach, integrating digital tools for visibility and payments while anchoring transactions in physical, community-level market spaces. In this sense, SHE-Marts can complement digital platforms, serving as entry points into markets rather than attempting to replace them. Third, scale can be achieved by aggregating individual SHGs into NHGs, thereby pooling skills and enhancing support and bargaining power for women-led businesses. Fourth, streamlining application processes and improving awareness can expand access to public procurement for women-owned businesses. Finally, enterprise support and market access must be continuous and integrated, not episodic or fragmented.
SHE-Marts present a significant opportunity not only to strengthen women’s enterprises but also to catalyse the development of local markets and rural economies. If implemented well, they can drive economic transformation and inclusive growth.
Arpan Tulsyan is a Senior Fellow with the Centre for New Economic Diplomacy at the Observer Research Foundation.
Sunaina Kumar is Director and Senior Fellow at the Centre for New Economic Diplomacy at the Observer Research Foundation.
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Arpan Tulsyan is a Senior Fellow at ORF’s Centre for New Economic Diplomacy (CNED). With 16 years of experience in development research and policy advocacy, Arpan ...
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Sunaina Kumar is Director - CNED and Senior Fellow at the Observer Research Foundation. She previously served as Executive Director at Think20 India Secretariat under ...
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