Recently, the Indian government and the World Bank signed a $250 million agreement for the National Rural Economic Transformation Project (NRETP), an initiative under the Deendayal Antyodaya Yojana National Rural Livelihoods Mission (DAY-NRLM). This project will significantly focus on propelling women-owned and women-led agricultural and non-agricultural enterprises while fostering youth skill development. To support these initiatives, innovative financial products and digital financial services have been introduced, intending to help small-scale producers expand and engage with the market more effectively.
An Overview of the Project
This ambitious project’s primary objective is to enable women to establish businesses that facilitate access to finance, markets, networks, and employment. By supporting youth skills development in collaboration with the Deen Dayal Upadhyaya Grameen Kaushalya Yojana, the project aims to create a mutually beneficial relationship between Panchayati Raj Institutions (PRIs) and community-based organizations (CBOs).
DAY-NRLM: Emphasizing the Most Vulnerable
The DAY-NRLM places considerable emphasis on the most vulnerable communities and the poorest individuals, focusing on their financial inclusion. As part of the NRETP, innovative projects are being undertaken to pilot alternate channels of financial inclusion, establish value chains around rural products, introduce innovative models in livelihood promotion, enhance access to finance, and scale up digital finance and livelihood intervention initiatives.
Promoting Financial Services Using Digital Platforms
Developing financial products using digital financial services forms a key component of this project. These digitally-enabled services aim to help small producer collections scale up and engage effectively with the market.
Successful Strategies: Peer-to-peer Learning Across States and Communities
Peer-to-peer learning across states and communities played a pivotal role in the NRLP’s success. This strategy will be used again in this project, aiming to facilitate knowledge sharing and promote best practices across different regions.
Technical Assistance and Higher Level Interventions
The NRETP offers technical assistance and high-level interventions to improve livelihood promotion and access to finance. These initiatives are complemented by skills-building programs and investment support intended to strengthen women-owned and women-led producer collectives, encouraging them to diversify into high-value agricultural and non-agricultural commodities.
Table: Key Features of the Project
| Key Features | Description |
|---|---|
| Promotion of Women-led Enterprises | Supporting women to build businesses that help them access finance, markets, and networks; and generate employment |
| Youth Skills Development | Working in coordination with Deen Dayal Upadhyaya Grameen Kaushalya Yojana to support skill development among the youth |
| Digital Financial Services | Developing financial products using digital platforms to help small producers scale-up and engage with the market. |
| Peer-to-peer Learning | Fostering learning across states and communities to share successes and learn from each other |
| Technical Assistance | Providing technical assistance, skills building, and investment support to strengthen producer collectives. |
About Deendayal Antyodaya Yojana – National Livelihoods Mission (NRLM)
Launched by India’s Ministry of Rural Development in 2011, the NRLM aims to create efficient and effective institutional platforms for the rural poor, enabling them to increase household income through sustainable livelihood enhancements and improved access to financial services.