By Shaphrang Syiem Shangoi
Meghalaya has set a bold target— under its Mission 10 a vision by our state government to become a 10 billion dollar economy by the year 2028.To achieve this vision, banks and financial institutions must become active partners in achieving this vision. Financial institutions are the engine to drive economic growth. First-time entrepreneurs, small business owners and tribal communities need their constant support and mentorship.
- Credit Disparity: A Systemic Challenge, Not a Tribal Divide
Scheduled Tribes (STs) constitute 86.1% of Meghalaya’s population, their access to formal credit remains disproportionately low. As per the SLBC report for December 2023, only Rs 8,81,333.40 lakhs—about 47.7% of the total Rs 18,46,960.42 lakhs in outstanding bank credit—was allocated to ST borrowers. In contrast, the remaining 13.9% of the population, comprising non-tribal communities, accounts for 52.3% of the total credit. This sharp contrast reveals more than a statistical gap; it reflects a deeper structural issue within our financial and banking system. It’s easy or perhaps lazy to frame this as just another tribal versus non-tribal issue, but that would be an oversimplification. A more honest approach is to view it as a systemic challenge and structural shortcomings that needs resolution. In economics, resource distribution isn’t always a zero-sum game—greater credit flow to one group doesn’t necessarily imply exploitation of the other or imply deliberate exclusion. Instead, it may point to untapped potential within the tribal population. The challenge, then, is not to cast blame, but to recognize that the gap also represents an opportunity for growth. This article is not a call to division, but a call to introspection—on how we, as a tribal-majority society, can identify and address the real barriers holding us back from equitable growth.
- Entrepreneurship as the New Pathway for Youth
It’s no longer difficult to understand that entrepreneurship is the way forward for sustainable job creation. The days when a government job was the only path to a secure and comfortable life are behind us. Today’s youth have begun to accept—and even embrace—this new reality. However, when it comes to ownership in the Micro, Small, and Medium Enterprises (MSME) sector, its evident that tribal representation remains disproportionately low. Despite the changing mindset, we continue to lag behind in building and owning businesses that drive local economies and create employment. This underrepresentation signals a need for focused support, policy attention, and cultural encouragement toward entrepreneurial growth within our communities. Financial systems remain out of reach for many locals—not just because of paperwork, but because language, culture, and policies disconnect. For the state tribal community access to finance remains distant, alienating and often unfamiliar. Banks are expanding in the state, but not always with the people belonging to the STs Community at its centre.
- One-Size-Fits-All Banking Policies Fail Meghalaya
Many of these challenges arise not from any failure, but from the lack of understanding about the uniqueness of Meghalaya itself—its distinct cultural identity, indigenous knowledge systems, and diverse tribal languages. These are not mere differences; they are the very soul of the state’s social and economic fabric. Yet, banking policies continue to be shaped far from this reality, often in metropolitan boardrooms with little understanding of local contexts. Expecting such one-size-fits-all approaches to work here is not just ineffective—its unfair. Meghalaya cannot and should not be judged, measured, or served by the same parameters used for the rest of the country. What we need is not just inclusion, but understanding—systems built with us, not just for us.
- Beyond Documents: Understanding the Real Barriers and the Problem of Talent Drain
The solutions to Meghalaya’s banking disconnect isn’t always buried in policies—it wears a name tag. A local ST banker. Someone who speaks the language, knows the land, and understands the rhythm of tribal life. Not just a person chasing KPIs or the next promotion, but someone rooted in the community—someone who’s in it for the long haul, who genuinely cares about creating impact. In a system built on trust, a banker who belongs is more powerful than any top-down reform. We need change, and the first thing to do is putting a right person behind the desk who will bring true change not just in numbers in the balance sheet but in lives uplifted, trust builded and community empowered.
Here as an example, a Non-local banker might prioritize conventional risk metrics like balance sheet ITR return , DPR and other formal documentation to assess the creditworthiness of an entrepreneur , by this standard alone many tribal entrepreneurs will be ineligible from obtaining any credit from banks . The reality is that most tribal business owner’s wouldn’t even consider opening a current account for his business let alone maintaining all the financial statements and paperwork. This has resulted in stricter loan conditions or outright denial of credit. But a local ST banker might not rely solely on these conventional metrics. They might sanction a loan to a first time business owner solely on the fact that they go to church regularly, maybe they are an active member of a locality or maybe through family connection. My point is credit worthiness doesn’t not only reflect in financial statements but these informal assessments do complement formal risk evaluations — blending community insight with financial prudence. More importantly a banker serves not just as a lender but as a crucial mentor for emerging entrepreneurs — and a local banker, with deep cultural ties and community trust, is uniquely positioned to guide and empower local businesses.
One other critical issue in the banking industry especially for our state is the transfer of local talent to distant parts of India—even as enough vacancies remain within our own state. Yes exposure to a variety of markets and conditions do hone the skills and expertise of an individual banker, but most of the time these transfers are done in a mechanical way devoid of logic and without consideration of local needs. This practice robs Meghalaya of the invaluable insights of its own people. When language verification is overlooked during recruitment, which most banks in our state ignore, the result is a communication gap that undermines effective banking support for ST entrepreneurs. Even Meghalaya Rural Bank set up solely for the purpose of catering to the banking needs of a specific region suffer the language barrier due to lack of understanding of the ground reality.
In light of the state government’s vision for a trillion-rupee economy, we must urge our banking institutions to take a more proactive and inclusive stance. Local, indigenous bankers are not just preferable—they are essential. They can drive policy advocacy, support culturally sensitive financial products, and build community outreach programs that make banking accessible and meaningful to every segment of our society.
Let us imagine a Meghalaya where our banks are led by individuals who speak our language, understand our customs, and believe in our potential, financial services that are tailored to the unique challenges and opportunities faced by our indigenous entrepreneurs. This vision is not merely aspirational. It is a call to action for our banks, for our policymakers, and for all tribal communities who dream of a more inclusive, dynamic economy.
As we forge ahead, let us remember that true growth is not measured solely in numbers—it is measured in the empowerment of our people. By retaining local talent and embedding cultural sensitivity at the heart of our financial institutions, we can ensure that the journey to a trillion-rupee economy is inclusive and transformative.
The future of Meghalaya lies in our hands. Let us choose to build it together—banking on our people, banking on our heritage, and banking on our shared dreams.
