The Deendayal Antyodaya Yojana National Rural Livelihoods Mission (DAY NRLM) has quietly transformed rural India. Around 10 crore households are united in 91 lakh Self-Help Groups (SHGs). These groups form 5.35 lakh Village Organisations and 33,558 Cluster-Level Federations (CLFs). Banks have extended more than ₹11 lakh crore in credit with a low Non-Performing Asset (NPA) rate of just 1.7%. Impressively, over two crore SHG women now earn more than ₹1 lakh annually, known as Lakhpati didis. Alongside economic and social gains, the program promotes women's political power. States like Madhya Pradesh, Jharkhand, and Maharashtra are running direct benefit schemes for women. Bihar recently transferred ₹10,000 each to over one crore women under Mukhyamantri Mahila Rozgar Yojana. The government is set to review DAY NRLM for 2026-27 to 2030-31. Strengthening CLFs, the program’s local power centres, will be key. Currently, many CLFs face government control, limiting their independent decisions. Experts urge making CLFs truly community-owned, free from interference. Kerala’s Kudumbashree and Bihar’s Jeevika offer successful CLF models. Large funds lie unused with CLFs, risking misuse. About ₹56.69 lakh crore has been given to community bodies as capital support, plus more from governments and interest. Stronger community and statutory audits are needed. Loan policies should adapt to members’ needs instead of fixed rates. Many SHG members want bigger loans as their businesses grow, but lack individual credit histories. Generating CIBIL scores and making CLFs active in loan processes can help. The program should shift from loans to innovative financing like equity and venture capital. Partnerships with banks and financial firms will support rural women entrepreneurs better. To achieve real impact, the program must break siloed interventions by making annual livelihood plans for each state, using Village Prosperity and Resilience Plan data. CLFs should become business hubs offering all livelihood services. Coordinating with other departments can enhance resources. Creating a ‘Convergence Cell’ at NITI Aayog will stabilize collaboration and reduce duplication. Marketing SHG products is a major challenge. A dedicated marketing vertical should address packaging, branding, pricing, and logistics. Selected CLFs can act as logistic hubs. Independent market organizations at state levels could connect SHGs to private buyers. Professional support must be provided to these community groups, respecting their pace of development. With these upgrades, rural women’s empowerment through DAY NRLM is poised for a vibrant next phase. Charanjit Singh, retired IFS officer, shared these insights on February 3, 2026.