The idea of SHG started to germinate in early 1980s, in India during early stage it was cramped in the Southern States of the Nation, namely Andhra Pradesh, Tamil Nadu and Kerala. It was started as a tool to eradicate poverty, which gradually stretched through other parts of the country and started to pick momentum in 1990s, and finally it took shape as a movement. In this stage SHG started to consolidate, building their association at various levels. In this phase Government and Banks started to recognize and affiliate them as group. The SHG movement enabled the unorganized, marginalized, underprivileged, minorities of the society to take up their economic dreams to next level. SHGs are small homogeneous group consisting of 12-20 women from below poverty line. SHGs are getting better access to funds from financial institutions once the individual SHG is getting crediting rating. Micro finance is viewed as a logical extension of the Banks which are working towards inclusive growth, SHG movement is driven from micro-finance is seen as pragmatic approach to poverty reduction by providing access to credit for poor in rural, semi-urban and urban areas.

KEYWORDS: SHG, women, economic changes, poverty reduction, economic changes