In India more than 70% of people live in rural area. Most of the rural people of India have been facing problems linking to their livelihood as compare to their urban counterpart as there is less development in the rural areas in all respects. So without the development of rural India, the real development of India cannot be possible. Providing economic support or loans to the rural women helps them to empower, not only economically but also socially, further this strengthens the whole society in general. The only way to decrease the poverty is to provide economic support to the rural people, mainly the rural women through the self-help group. Formation of Self-Help Groups is viewed as poverty alleviation instrument and also a successful tool for rural development. The Self-Help Groups have contributed a lot in the development of socio-economic status of the rural people. In this way these groups have also been helping the rural economy of India. Self-Help Groups have also been helping in women empowerment as well as work contribution of women in the rural economy. So the main reason of this paper is to study the role of Self-Help Groups in the rural development of India.