2025, Vol. 8, Issue 2

author(s)
Amit Kumar and Iqbal Khan

abstract
The National Rural Livelihood Mission (NRLM), launched by the Government of India in 2011, is one of the most significant poverty alleviation initiatives aimed at empowering rural households through self-employment, skill development, and institutional support. In Himachal Pradesh, NRLM has played a crucial role in mobilizing rural communities, particularly women, into self-help groups (SHGs) and federations, thereby fostering financial inclusion and sustainable livelihoods. This paper examines the impact of NRLM on poverty alleviation in the state with the application of factor analysis as a statistical tool to identify the key determinants influencing its effectiveness. The study highlights factors such as access to credit, capacity building, income diversification, skill training, and social capital as vital components contributing to poverty reduction. By analyzing the underlying dimensions of program implementation, the research provides evidence of the mission’s success in enhancing household income, improving decision-making power of women, and promoting social cohesion. At the same time, the study identifies challenges related to outreach, market linkages, and sustainability of enterprises. The findings emphasize the importance of strengthening institutional frameworks and policy support for maximizing NRLM’s impact in Himachal Pradesh. Overall, the paper contributes valuable insights into the role of NRLM in achieving inclusive and sustainable rural development.