Budget 2024: Lakhpati Didi target increased from 2 crore to 3 crore; what is the scheme about

In her 2024 budget speech, Union Finance Minister Nirmala Sitharaman announced that the government plans to increase the Lakhpati Didi target from 2 crore to 3 crore. The term 'Lakhpati Didis' refers to women members of Self Help Groups (SHGs) who harness their entrepreneurial skills and earn a sustainable income of at least Rs 1 lakh per year per household. The scheme, aimed at economic independence and women empowerment.

“83 lakh Self Help Groups (SHGs) with nine crore women are transforming the rural socio-economic landscape with empowerment and self-reliance. Their success has assisted nearly one crore women to become Lakhpati Didis already. They are an inspiration to others. Their achievements will be recognized through honoring them. Buoyed by the success, it has been decided to enhance the target for Lakhpati Didi from 2 crore to 3 crore,” said Nirmala Sitharaman in the budget speech.

It was in 2023, on the occasion of Independence Day announcement by Prime Minister Narendra Modi, that the dream to convert rural women into Lakhpati Didis was conceived. He emphasized the role of rural women associated with SHGs and expressed his visionary dream of creating 2 crore lakhpati didis in the villages. He said, "Today 10 crore Rural Women are part of the Self-Help Groups. When you go to a village, you will find 'bank-wali didi,’ ‘Anganwadi didi’ and ‘dawai-wali (medicine) didi’. It is my dream to make two crore lakhpati didis in the villages.”

This was the interim budget preceding the general elections scheduled this year. The last Interim Budget 2019, significant tax changes were proposed, including exemption of income up to Rs 5 lakh from income tax. Individuals with an annual taxable income not exceeding Rs 5 lakh were slated to receive a full tax rebate of Rs 12,500. The Standard Deduction was proposed to be increased by Rs. 10,000, bringing the total benefit to Rs. 50,000 in each tax year. There was also increase in TDS thresholds under Section 194A for interest and 194I for rent. The TDS threshold on bank Fixed Deposits (FD) was raised to Rs 40,000 from Rs 10,000.