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The government needs to concentrate on solving the problem, not just papering over the cracks with promises of investment through the IPB
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The recent damning report by apex industry body, the Associated Chambers of Commerce and Industry of India has now started to get political with both the chief minister and the head of the Congress on either side of the argument. The economic research bureau of the body, better known as ASSOCHAM, had stated that growth in outstanding investments in Goa was down to 7.5 percent, from 23 percent in 2014-15, leading the body to state that Goa has so far failed to attract investors and that growth in outstanding investments is just not picking up. The numbers confirm that.
Chief Minister Laxmikant Parsekar is not impressed though. He is likening the report to the recent Kautilya study that claimed that the Aam Aadmi Party will win the next election in Goa, to him they are politically biased. Parsekar claims that the Investment Promotion Board (IPB) has over 100 projects approved and many more in the pipeline. Luizinho Faleiro, on the other hand, backs the ASSOCHAM report and says the economic situation in the State is dire.
So what is true? Let’s leave politics aside and look at the facts. A drop from 23 percent to 7.5 percent is not a small matter, especially when it’s in the subsequent year itself. The industrial sector’s share of the GDP was 45.9 percent in 2009-10 and fell to 33.2 percent in 2013-14. Outstanding investments in manufacturing fell by over 7 percent from 2012 to 2015. If this study is politically biased then it’s really detailed.
The fact remains that there is an economic lull in Goa and it’s not just because of the shutdown of the mining industry or the drop in tourism. Both those caused a huge dent but Goa’s industry issues aren’t new or just current. This goes back a few years. Now, however, it’s very apparent.
The government needs to concentrate on solving the problem, not just papering over the cracks with promises of investment through the IPB. There may be over 100 approvals but a number of them are yet to be operational and some others will require the government to convert vast areas of land.
What Goa could do with though, and the ASSOCHAM agrees with this, is more inclusive programmes that also empower locals. The agriculture industry, particularly the cashew and rice co-operatives, could use a boost. The tourism industry will get a boost if agriculture and aquaculture both see resurgence. Growth in a number of tourism-related industries within Goa itself will see better synergy and have a strong economic outlook.Tax holidays for homegrown industries will help too!
The stronger the local industry, stronger the self-employment. Once that is strengthened there’ll be industries that will always have positive growth. Maybe it’s time the government looked within.
