Economic change is literally sweeping through this hill town of the Khasis. The humble broom we use in everyday life contributes Rs 300 crore a year to the economy of Shillong. Brooms made here are used across India and have seen a demand spiral in sync with the real estate upswing. The brooms cost Rs 12 a kilo two years ago and now cost upward of Rs 30.
Says Anand Aggarwala, who trades in this commodity at the upmarket Police Bazaar in downtown Shillong: ?The broom is our best-kept secret. This is only the beginning; as rural India modernises, and hygiene consciousness comes about, this business will grow manifold.? It?s classic bottom of the pyramid.
From brooms to tourism and hydro electricity to software, the city is witnessing unprecedented growth. Shillong derives its name from the legend of a deity called Shy Long?one that grows naturally?and is at last living up to its name.
The free market works in fascinating ways here. The helicopter ride from Guwahati costs Rs 900; take a taxi, and the tab is Rs 1,100. With air connectivity has come the higher-end tourist. Says JR Phambo, who is developing a mountaineering and wellness resort in picturesque Cherrapunji: ?For years, Shillong sounded exotic but was out of reach; now, it?s a two-hour flight and half-hour chopper hop from Delhi. This has translated into a mini tourism boom. Suddenly, we are accessible!?
And it is likely to get closer. Plans are afoot to lengthen the runway at Shillong to land jet and turboprop aircraft. The first landings may take place as early as this January. The result is a hotel boom with several companies, including the Taj group and DLF, reportedly exploring possibilities.
The real growth, though, may come from unlocking the state?s hydel potential. Forty firms have shown interest in projects in Meghalaya so far and at least six new hydel projects are already in various stages of commission. Says Manas Chaudhery, editor of The Shillong Times and an MLA: ?If execution meets intention, hydro power could a be really serious money-spinner for us.? With an English-speaking workforce and property prices 40% lower than the metros, it?s only a matter of time before information technology arbitrages the Shillong advantage. Says M Larsing, the NIIT franchisee and hotelier: ?Infotech firms are looking to save costs and yet need a diligent workforce that is fluent in English. We have seen that Shillong youth, once given the technical skills, love to work within their homes even if wages are lower. I believe that as far as cost arbitrage goes, Shillong is the future IT hotspot.?
Yet another trigger for growth is timber and non-timber forest products. Says Sahihun Lang, a young women entrepreneur: ?Forest products are a strength of Shillong and with the wellness business and the retail revolution unfolding, we see great opportunities in supplying top grade honey, turmeric and many other items.? To this end, the government has set up a Meghalaya agricultural marketing portal for e-commerce and large retails chains have already started procurement on it.
Finally, there is mineral wealth such as coal and limestone on offer. However, the lack of clarity in policy and the difficulty of obtaining land ownership have deterred investors in this sector and much of current mining is illegal. There is also a dispute on mining uranium at Shillong, given environment concerns.
One intangible reason for Shillong?s growth is its young population. It?s late at night and the trendy disco Tango is packed; trouble has broken out and blows exchanged. A waiter informs me that they need more bouncers?and from out of town since tribal and clan affiliations ensure that the local ones don?t do a good job of restraining fellow tribesmen. So, economic growth and social change?in the city that annually celebrated Bob Dylan?s birthday?is literally blowin? in the wind.
