Aajeevika – National Rural Livelihoods Mission
Current Affairs & Government Schemes › Employment and Livelihood Schemes · Topic 7.5
Aajeevika, the National Rural Livelihoods Mission (NRLM), is the Ministry of Rural Development programme launched in June 2011 to reduce rural poverty by organising poor households, mainly women, into self-help groups and linking them with bank credit, skills and markets. It was renamed the Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) in 2015. It is a Centrally Sponsored scheme, funded by the Centre and States in a 60:40 ratio, and has mobilised over 10 crore women into about 90 lakh self-help groups, as reported in 2025. Its present goal is the Lakhpati Didi target.
5 min read · UPSC Prelims · Current Affairs & Government Schemes · Employment and Livelihood Schemes
At a Glance
- Ministry Rural Development
- Launched June 2011
- Renamed DAY-NRLM in 2015
- Model Women self-help groups
- Goal Lakhpati Didi
- Exam link UPSC Prelims, Current Affairs and Government Schemes: Employment and Livelihood Schemes
Where Does It Fit?
This page treats the rural livelihoods mission through the lens of livelihood and employment. The sibling page in the macro on rural development covers the same mission as an institution-building and finance programme. Previous topic: National Career Service (NCS) Portal. Next topic: Garib Kalyan Rojgar Abhiyaan.
What Livelihood Model Does Aajeevika Follow?
| Component | What it does |
|---|---|
| Social mobilisation | Poor women are organised into self-help groups, then into village organisations and cluster-level federations |
| Financial inclusion | Revolving Fund and Community Investment Fund to the groups, bank credit linkage and interest subvention for women self-help groups |
| Livelihood promotion | Support for farm, livestock, non-farm and non-timber forest produce activities, with Community Resource Persons |
| Skills and placement | Linked with Deendayal Upadhyaya Grameen Kaushalya Yojana for wage employment and Rural Self Employment Training Institutes for self-employment |
| Enterprise support | Sub-schemes such as the Start-Up Village Entrepreneurship Programme and the Aajeevika Grameen Express Yojana for rural transport services |
| Special groups | Intensive work in the poorest States and for the vulnerable, including tribal groups and persons with disabilities |
| Funding | Centrally Sponsored, shared 60:40 between the Centre and States, with 90:10 for the North East and Himalayan States |
What Is the Lakhpati Didi Target?
- Meaning: A Lakhpati Didi is a self-help group member whose household earns at least Rs 1 lakh a year, sustained over several agricultural cycles, through livelihood activities
- Target: The Prime Minister announced a target of 2 crore Lakhpati Didis in August 2023, and the target was later raised to 3 crore
- Reported progress: Government statements in 2025 reported that more than 2 crore women had crossed the mark. Treat the figure as reported and dated
- Tools: Training in drone use for farm services, livestock services, bank sakhi and agri-nutrition work, and sales through the Saras network
- Differentiated angle: This page stresses income and employment outcomes, while the other page stresses institutions, as in Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
- Impact studies: Studies show gains in savings, borrowing and decision-making of women, though income gains differ across States
What Else Should You Remember?
- Origin: The Aajeevika mission of the Ministry of Rural Development began in June 2011 with World Bank support and replaced the Swarnajayanti Gram Swarozgar Yojana, which had an individual loan approach
- Shift in approach: Instead of giving subsidised loans to individuals, the mission builds a group-based institution of the poor
- Self-help groups: A group usually has 10 to 20 members, who save regularly, lend among themselves and then take bank loans
- Deprived States: Intensive work has been done in Bihar, Jharkhand, Madhya Pradesh, Odisha, Uttar Pradesh and others with high poverty
- Bank link: Banks lend to groups under priority sector norms, and repayment rates of groups are reported to be high
- Interest subvention: Women self-help groups get loans at reduced rates, with extra relief for repayment on time
- Mission Antyodaya: A data tool that ranks gram panchayats on development and helps to target the poorest areas
- Digital: The mission uses the e-Shakti and other platforms for digitising group accounts
- Other angle: The mission is also the parent of the Mahila Kisan Sashaktikaran Pariyojana, which trains women farmers
- Concerns: Some groups remain weak, loans often go to consumption, markets are thin for products, and the poorest may be left out
- Way forward: Value chains, producer enterprises of women, better market links and stronger skills for non-farm work
Why Does It Matter for the Exam?
- Ministry and year: Rural Development, June 2011
- Renamed: DAY-NRLM in 2015
- Funding: 60:40 Centre and State
- Model: Women self-help groups and federations
- Common errors: Mixing it with DDU-GKY, SGSY or the Urban Livelihoods Mission
As an analytical point, self-help groups are a strong base for rural finance and women’s agency, but income growth needs market access and skills. Producer enterprises and value chains owned by women carry the model from small savings to stable livelihoods.
Why Is This Topic Important?
- Basics Ministry, year and name
- Target Lakhpati Didi
- Compare SGSY and NULM
What Came Next?
The next topic covers the special employment campaign for returning migrant workers during the pandemic. Next topic: Garib Kalyan Rojgar Abhiyaan.
Key People and Terms
- SHG Self-help group
- Lakhpati Didi Woman whose household earns Rs 1 lakh a year
- CIF Community Investment Fund
- SGSY Earlier individual loan scheme
- Federation Group of village organisations
Exam Corner
Points to Remember
- Launched: June 2011.
- Renamed: DAY-NRLM, 2015.
- Funding: 60:40.
- Replaced: SGSY.
- Goal: 3 crore Lakhpati Didis.
Do Not Confuse With
- Aajeevika NRLM and DAY-NULM Rural mission versus urban livelihoods mission
- Aajeevika NRLM and SGSY Group-based institution versus individual subsidised loans
- Aajeevika NRLM and DDU-GKY Mission versus its placement-linked skilling component
Memory Hook
Save in the group, borrow from the bank, earn a lakh, become a Lakhpati Didi.
Mains Angle
Questions ask how self-help groups reduce poverty. These points give a balanced frame.
- Strengths Women agency, savings, credit access and social capital
- Weaknesses Weak markets, uneven groups and consumption loans
- Way forward Producer enterprises, value chains, skills and market links
A Question You May Face
An original practice question, not a past paper question.
“Assess the contribution of self-help groups under Aajeevika to rural livelihoods and women’s empowerment, and discuss what is needed to scale up incomes.”
How to Answer
- Introduce Mission, year and the SHG model.
- Impact Savings, credit and women’s agency.
- Gaps Markets, weak groups and loan use.
- Way Enterprises, value chains, skills.
GS Relevance
Frequently Asked Questions
What is Aajeevika, the National Rural Livelihoods Mission?
Aajeevika is a programme of the Ministry of Rural Development launched in June 2011 to reduce rural poverty by organising poor women into self-help groups and linking them with credit, skills and markets. It was renamed DAY-NRLM in 2015 and is funded by the Centre and States in a 60:40 ratio.
Who is a Lakhpati Didi?
A Lakhpati Didi is a woman member of a self-help group whose household earns at least Rs 1 lakh a year through livelihood activities, sustained over several agricultural cycles. The target set by the Government is 3 crore such women, and reports in 2025 said that more than 2 crore had reached the mark.
Which scheme did Aajeevika replace?
Aajeevika replaced the Swarnajayanti Gram Swarozgar Yojana, which gave subsidised bank loans to individual poor families. The new mission changed the approach to a group model, in which women form self-help groups, save and borrow collectively, and then use federations to access bank credit and markets.
What is the funding pattern of DAY-NRLM?
DAY-NRLM is a Centrally Sponsored scheme in which the Centre and States share costs in a 60:40 ratio. For the North Eastern States and Himalayan States, the ratio is 90:10. The Ministry of Rural Development provides the framework, and State Rural Livelihood Missions carry out the work.
How does this page differ from the DAY-NRLM page?
This page looks at Aajeevika as a livelihood and employment programme, stressing income, enterprises and the Lakhpati Didi target. The sibling DAY-NRLM page treats the same mission as an institution-building and financial inclusion programme, with details of federations, funds and rural development linkages.
PYQ Practice — Statement Analysis
1 Aajeevika was launched in 2011 by the Ministry of Rural Development.
It began in June 2011.
2 Aajeevika follows an individual subsidised loan approach.
It follows a group approach based on self-help groups.
3 The funding ratio of DAY-NRLM between Centre and States is 60:40 for most States.
North East and Himalayan States get 90:10.
4 Aajeevika replaced the Swarnajayanti Gram Swarozgar Yojana.
SGSY was the earlier scheme.
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