The correct option is 2 and 3 only.
Explanation
Poverty alleviation programmes in India are broadly classified into wage employment schemes (e.g., MGNREGA) and self-employment schemes (e.g., NRLM). The strategy for self-employment has evolved significantly from individual-centric assistance to a group-based approach involving Self-Help Groups (SHGs).
Statement-wise Analysis:
- Statement 1 is Incorrect. The government did not ignore self-employment initially. Since the early planning periods, the government implemented various self-employment programmes alongside wage employment schemes. Notable examples include the Integrated Rural Development Programme (IRDP) launched in the late 1970s, which targeted individual households for asset creation.
- Statement 2 is Correct. In the 1990s, policy reviews indicated that the individual beneficiary approach (like IRDP) was not yielding the desired results due to lack of sustainability and repayment issues. Consequently, the government shifted its focus towards a group-based approach. This led to the restructuring of self-employment schemes into the Swarnajayanti Gram Swarozgar Yojana (SGSY) in 1999, which prioritized the formation of Self-Help Groups (SHGs) to encourage collective savings and lending.
- Statement 3 is Correct. Under the SHG-based model (institutionalized through SGSY and later the National Rural Livelihood Mission), the government provides partial financial assistance. This assistance is structured as a mix of government subsidy and bank loans (credit linkage). The government facilitates these loans through interest subvention and revolving funds to help SHGs undertake economic activities.
Key Takeaway:
The evolution of self-employment programmes in India is marked by a shift from the individual beneficiary approach (e.g., IRDP) to the group-based SHG approach (e.g., SGSY, NRLM) to ensure better credit discipline and sustainable livelihoods.