Rural development can be sustainable if it has the participation of people to whom it is directed. The SHGs bring the participation of the most desired people in rural development that has inherent advantages. They synergize development efforts and instill a sense of zeal and enthusiasm among the participating stakeholders. Rural development is a very dynamic process that involves improving the socio-cultural, environmental, political and economic wellbeing of the rural poor living in relatively isolated areas. In a country like India, where the majority of people live in rural areas, the concept of rural development becomes very important.