Dr. Manoj S. Kamat

PhD (Finance) IIT Bombay, Post Doctoral Fellow (Economic Policy)

Industrial Goa: Active

Attributes & Passive

Preparedness

• More than 100 year old

• Most-busy event calendar

• One of the Vibrant Chambers

in this part of the country

• Represent and liaise with

SME's, Corporate

Organisations and

Government bodies.

• Knowledge Chamber:

Support services, business

networking, & Policy inputs

Projected GDP Growth Rates for Select Upcoming Economies

0

2

4

6

8

2005-10 2010-15 2015-20 2020-25 2025-30 2030-35 2035-40 2040-45 2045-50

GD

P G

row

th R

ate

(%

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Brazil China India Russia

India has been ranked superior to other major countries by many

prominent surveys…

AT Kearney placed India among the top three in its FDI confidence

index…

India is expected to outperform its rivals in the BRIC, in terms of GDP

growth rates, from 2015 onwards…

India Emerges as a Major Economy in the World

GOA

Brand Goa

• A flourishing Trading Culture and Major Port

• Quality Infrastructure

• Friendly People in a Healthy Environment

• Smart Alternative for the Smart Investor

• Extensive Support Systems

Goa provides the best of both the worlds. Be it Business or Pleasure, Goa has a lot to offer a prudent businessman as well as the fun-loving

traveler…..

Stable Financial Indicators

• The economic growth of Goa is around 8.9% in 2011-12

• The per capita income growth in is 9.3% compared to 6.2%

in the same years

• Tertiary Sector accounted for 52% of the GSDP followed by

secondary sector with 38 % and primary sector with 10%

• The per capita income of Goa State during each year of the

period 2011-12 is Rs. 1,95,301,572 and is higher than the

national level (Rs. 53,331) by more than three folds

• The total bank deposits stood at whooping Rs. 43,000 crore

• Tax Revenue:

+ 400 crores

• Non tax revenue (Power & Water):

+ 100 crores

• Central Assistance

+ 100 crores

• Additional Debt

+ 600 crore (Total debt 6614 crore)

The Glorious Past

Decisive Mandate for Governance

“Best Governed State”

Progressive Economic Outlook

Best Demographic Parameters

GOA: Core Competencies

• Rich State in India with highest per capita income of almost three times that of the

average for the country (Economic Survey 2011)

• Best Ranked State for its Infrastructure (Eleventh Finance Commission)

• Ranked Top for the best quality of life in India (National Commission on Population).

• Ranked Top among the medium population density states as per (IFC-RICS

Sustainability Competitiveness Report 2011 for Indian States)

Ranked fourth in terms of overall human development (India HD report Report

2011)

• Among the top three in terms of Economic Competitiveness (Economic Freedom

Scores of the State of India 2011)

• Ranked Top among the Indian states to have 100 per cent rural electrification.

• Ranked Top among the few states in the country to have 100 per cent automatic

telephone systems.

• Major Exporter of iron-ore to Asian economies, and sea-food to the US, Japan and

the European countries.

• Most urbanized state after Delhi

• Ranked Top among Indian states with the best banking network

• Ranked Top among Indian states in terms of households in Goa owning a 2

wheeler and /or a car

GOA: Competitive Strengths

Vision for New IP’13

• New IP 2013, should sustain the growth

momentum

• Recognition of Goa as a peaceful, friendly,

knowledge centric and enlightened Investment

destination.

• The main thrust of economic growth with

industrialisation in Goa must be to foster

sustainability by balancing development of

industry, protecting environment and natural

resources.

Proposed Mission for New IP’13

New IP 2013, should facilitate economic

development in such a way that

Accelerates Industrial Development

Ensures balanced Regional Growth

Protects Environment

Create sustainable employment for the locals

Without vitiating the socio-economic climate

by unbridled inward migration

Proposed Objectives of IP 13

• Showcase the potential of Goa’s openness to

Investments in the identified thrust areas by

displaying its strengths, progressive stand,

initiatives, investor culture and economic

vibrancy of the State to promote it as a

preferred Investment destination.

• Document the policy initiatives, facilities and

incentives initiated by Goa to make it a

competitive and investor friendly destination.

Suggested Thrust Areas

IP 2003

• Outlived IP 03 with re-notification in 2008

was extended up to 2014

• Non attractive no longer meets the

challenges of attracting investment into the

state

• Unimplemented schemes: small plots,

reservations ?

• Non-transparency

• Gold Jewellery Promotion Board ???

• Stringent conditions: no eligible applicants for

the incentive for consumption of local raw

material, interest subsidy and women

entrepreneur schemes

• Investment Facilitation Counter: Non-existing

• Single window for indiscriminate delays !

• Power & water tariff ?

• Non-maintenance of Industrial estates

• New IE’s lack basic infrastructure

• Employment for the locals was never made an

issue

• No Hard-selling !

• Bureaucracy, Red-tapism

EM 1 and EM 2

• 2011-12, 409 entrepreneurs have filed EM

part-1, with proposed investment of 98

crores

• Out of the above, 67 entrepreneurs

filled EM-part II, with investment only

of 37 crore

• Less than 16%

Large Scale Industries

• HPCC cleared /approved proposals for

21 Large scale units

• Out of the above, LSI units in Goa

have only increased by 5

• Taluka-wise distribution:

4 in Mormugao, 1 in Ponda and 1 in

Bardez

FDI to State

• The percent share of FDI inflows in

received by Goa compared to all the

States in India has never ever been above

1.5%

• Current Figures: Goa’s relative

share has decreased from 0.65%

(169 US$ Mln) to 0.10% (38 US$ Mln)

from 2009-10 in the year 2010-12.

Data from RBI

Employment

• 7505 SSI’s, 21 Industrial estates and

189 large scale units, are estimated to

employ only around 50,000 people !

• Unplanned Industrialization

Employment for the locals was never made an

issue

Unprecedented inward migration

Regional (Taluka-wise) Disparity

Efficiency of Industrial

Estates

Smart Incentive Scheme

• Incentives based on EMPLOYMENT

Corlim, Margao, Tuem, Tivim

• Incentives based on LOCATION

Pissurlem, Cancona, Honda, Mapusa, Colvale

• Cluster-based Industry

Sanguem, Betul, Shiroda

• Model Industrial Estates

Verna, Kundaim, Cacoda

Strengthen Agriculture

• Strengthen Horticulture Mission.

• Extensively encourage Pisciculture, floriculture, Tissue

culture, Mushroom cultivation and processing

• Support Agrobased, food processing industry including

fisheries

• Set up Professional Advisory Services which would

facilitate and expedite commercial value addition to agro-

based products

Special Packages

• Allocation for Entrepreneur Education.

• Special Incentive for those units using green

technology, and following environmental certification

• Moratorium on further allowing rolling mills, fish-meal

plant, sponge plants, tobacco and liquor manufacturing

• 50% plots for Goans in industries set up in estates to

setup non-polluting units, also reservation to

Women/SC/ST

• Capital scheme for revival old sick units and for

technology up gradation of existing units

Reform Industrial Estates

• Make Verna IE as a model estate with state-of-the-art

infrastructure, followed by other existing industrial estates

in a phased manner.

• The new IE’s should only have smaller plots

• Things need to be done to free the almost forty lakhs of

sqmts of land locked up in the SEZ dispute.

• Identify the vacant, unutilised or underutilised plots

• Those units who have been allotted plots (legally and

illegally) to either start their business activity within a one

year time frame or else surrender their plots

• Allot time-line to the sick units, occupying plots/sheds in

Industrial estates to revive them within a time-frame

Attention to MSME’s

• Revival package to sick MSME’s already located in IE’s

• Special privilege to ‘Micro Enterprises’ whose investment in

Plant & Machinery is up to Rs.25 lacs, irrespective of the

location of the unit and be exempted from obtaining license

from Municipality, Panchayat and NOC from Health Department.

• Set up Venture Capital Funding and Preferential treatment

from MSME’s in government purchases

• Bring as many MSMEs under green or orange category and

consider further rationalisation of fee structure for MSMEs for

them.

• All MSMEs under green and orange category with green

technology / environmental certifications, pollution control

certification should be valid for at least 10 years with provision

of onetime payment of fees rather than having to pay fees

every 2 years.

Go an Extra Mile • Resolve the issue of non-transfer of the industrial estates in

Daman and Diu to the local administrations as the state

government is not getting any financial benefit as of now

from the industrial estates in Daman, instead the GIDC

has to incur expenditure and also incur losses.

• Set up a Committee to offer tailor designed package of

incentives to cater to infrastructural requirements (power,

water, land, etc.) for LSI established in the thrust areas.

• Offer Special Preferential Treatment to entrepreneurs

based on factors such as type of project, employment

potential for locals, revenue generation for State and

overall impact of the industry on the socio-economic

progress of Goa.

CLUSTER-INDUTRY Approach

Knowledge Hub: at Dharbandora Goa is an ideal

destination to create education hubs. Salubrious

climate, peaceful state, good health facilities, and

well connected to other cities.

Logistics Hub: near Sancoale which can be

integrated with the Mormugao Port, the Airport,

Container Freight Station at Verna and the Railway

Container Yard, all located within a radius of 10

km.

Air Cargo & Cold Chain : near Pedne / Bicholim

will play a major role in the retailing business as

faster movement of goods and perishables like fish,

fruit, flowers and vegetables is what the retailing

industry needs.

Fish farming and Diary Business : at Salcette

and Sattari , respectively. It is a billion dollar

industry

CLUSTER-INDUTRY Approach

Food Processing: at Mapusa and Betul

Mankurad Mango, kokam, cashew, dried fish,

feni (now having a GI recognition) are a local

produce having a great export potential.

Hydel and Solar and based Energy: at

Sanguem

The Film, Media and Entertainment

near Cancona industry is another area

of untapped potential. It is necessary to

bring in global investment for facilitation

of infrastructure and leisure development

projects.

Adventure Tourism at Sanvordem

• Notify Industry-Clusters is suggested

areas, as discussed earlier

• Special Package to Solar/Hydel/Gas

based Power generation Plants / Captive

Plants

• Single Point Clearances for Large Units

in thrust areas

• Investment Facilitation Mechanism with

Deemed Acceptance Clause

Leading from the Front

• Industry has expectations from Parrikar’s astute and

technically strong administration

• The mining embroil this year took a continuous toll on CM’s

creativity, mood and zeal

• CM has firmly stood by its commitment to constitute the

Task Force for drafting the New IP 13

• Goa-IDC Allotment Regulations, 2012 notified

• New set of transfer regulations that provide for norms for

transfer, sub-lease, and surrender are being notified

• What we need now is a comprehensive investment

policy as a precursor to build up investor confidence…

GOA – for Business &

Pleasure

Dr. Manoj S. Kamat

PhD (Finance) IIT Bombay, Post Doctoral Fellow (Economic Policy)