Assessing The Socio-Economic Outcomes Of SHG Participation: Evidence From Rural Households In East Khasi Hills, Meghalaya

Abstract

Rural livelihoods in the East Khasi Hills District of Meghalaya remain predominantly agrarian, rain-fed and 
exposed to climatic and market shocks, despite a matrilineal order that confers relatively high social standing on 
Khasi women. Self-Help Groups promoted under DAY-NRLM and implemented by the Meghalaya State Rural 
Livelihoods Society are the principal vehicle for thrift, credit, skill formation and micro-enterprise among rural 
women. This paper examines whether, and through which pathways, SHG membership enhances rural livelihoods 
in five Community and Rural Development blocks of the district. Primary data were gathered from 250 SHG 
members and 100 non-member households in twenty-five villages through a structured interview schedule, focus
group discussions and key-informant interviews. Five livelihood dimensions income and consumption, financial 
inclusion, asset accumulation, skill and enterprise, and intra-household decision-making were scored and 
synthesised into a composite Livelihood Enhancement Index. Mean annual household income of SHG members 
rose by 67.8 per cent after membership; monthly savings more than trebled from INR 185 to INR 620; access to 
formal credit increased from 14.8 to 78.4 per cent; and 72.8 per cent of members pursued two or more income
generating activities. The composite index of SHG households (72.8) was significantly higher than that of non
members (44.7) at the one per cent level. Handloom, food processing and piggery recorded the largest 
proportional income gains. The evidence establishes a positive, statistically robust relationship between SHG 
participation and rural livelihood enhancement, while remaining constraints of market linkage, credit scale and 
value-chain integration are identified.