Abstract
In recent years the Self-Help Group (SHG) approach to poverty alleviation is getting recognition in the Asian countries. Mostly women are mobilised into groups for undertaking mutually beneficial social and economic activities. The group provides a base for self-employment and empowerment through group dynamics. In India, these mutual help based groups are known as Self Help Groups. Microfinance campaign through women SHGs has initiated new forms of institutions and organisational structures that make it feasible for the poor to get uncollateralised loans (Khawari, 2004). Very few empirical studies have been conducted in Rajasthan, on the growth and development of SHGs (Jairath, 2001), issues in informal finance and perspectives from a Rajasthan village (Howard and Jones, 2006). This clearly shows that there is limited work on the economic evaluation of rural financing for dairy farming through SHGs in India as well as in Rajasthan.
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