This research paper presents a comparative analysis of pathways to women’s economic empowerment through participation in Self-Help Groups (SHGs) and receipt of benefits from the Lakshmir Bhandar scheme in Hoogly District, West Bengal. Utilizing a mixed-methods approach incorporating surveys of 200 women (100 SHG members and 100 Lakshmir Bhandar beneficiaries), the study investigates perceived economic benefits, changes in financial autonomy, enhancement of decision-making power, and overall socio-economic well-being. The research hypothesizes that while Lakshmir Bhandar provides immediate financial relief and consumption support, SHG participation fosters more sustainable and holistic empowerment through collective action, skill development, and increased access to micro-entrepreneurship opportunities. Findings suggest distinct yet potentially complementary roles for both initiatives, informing policy recommendations for optimizing state-led welfare schemes and grassroots initiatives to achieve comprehensive women’s economic development in the Hoogly District.