Shillong: Overseas money flows into East Khasi Hills households, but it stays out of the local economy. A study backed by the Meghalaya government examined 1,008 households between 2019 and 2024. It found that families prioritize day-to-day survival over starting new companies. Total inflows hit Rs 46.308 crore over five years.
The average migrant sends home Rs 4.59 lakh annually. The highest per-capita amounts come from the United Kingdom at Rs 5.78 lakh. Europe leads in total contributions. Most households rely on this cash for daily life. Only 2.1 per cent of that total actually goes toward business ventures.
Basic needs consume 21.4 per cent of funds. Celebrations take 18.2 per cent, while family support and savings account for 16.4 per cent. Education and healthcare follow at 13.2 and 12.6 per cent respectively. Only 31.6 per cent of the families surveyed run any kind of business. Most are small operations like cafes or farms.
Medical bills kill ambition. Households dealing with healthcare costs show 49 per cent lower odds of starting a business. High ceremonial spending also hurts growth. Entrepreneurs face a wall of obstacles: 69.7 per cent struggle with market information gaps, while 69.4 per cent lack access to credit. Many cite poor financial literacy and lack of training as major hurdles.
Researchers point to one Shillong bakery as a success story. Funded by money from the United States, it expanded to include a cafe and six employees. The report concludes that, "The amount of money received alone explains only a small part of the variation in entrepreneurial activity." Officials now suggest better counseling and credit programs for returning migrants to turn overseas cash into local jobs.
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