Abstract Every citizen has a right to live life of dignity. Poverty is the main hindrance to live with dignity. After the economic reforms of 1991 India has grown tremendously by building strong international relations, allowing the entry of private sectors and through liberalization, but much of developments has not taken in the rural sector. Rural and marginalized section of the society has been ignored to a large extent. In order to remove the poverty hindrance and foster growth the government of India has launched Swarnajayanti Gram Swarozgar’(SGSY) on 1st April 1999 with an objective to help the people in rural India by providing them self employment, providing a platform and opportunity to people to come out with their talents. The objective of the main is to focus on the formation on Self Help Group (SHG), their objectives and the growth of SHG over the years.SHG has been formed with an objective of providing finance to the rural and marginalized, to provide proper health care and medical facilities in villages, to empower women. Indian women have sustained harder life and have undergone various sufferings. Women’s are being discriminated with respect to land and property rights, access to medical facilities and finance. Formation of Self Help Group has provided a new vehicle for women empowerment.