ASSOCHAM PAINTS
A SORRY PICTURE
* growth in outstanding investments fails to touch double digit mark between 2011-12 and 2015-16 barring 2014-15
* Outstanding investment growth rate falls to 7.5% in 2015-16 from over 23% in 2014-15
* Year-on-year growth rate for flow of new investments dips to about 9% in 2015-16 from 91% in 2014-15
* Outstanding investments in manufacturing falls at an average rate of 7.7% every year between 2011-12 & 2015-16
* Industrial sector's share to GDP declines from 45.9% in 2009-10 to 33.2% in 2013-14
THE SAVING GRACE
* Services and construction sectors see an average annual growth of 11.6% and 10.6% respectively between 2011-12 and 2015-16
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More inclusive tourism
policies & progs urged
Considering that tourism is the mainstay of Goa’s economy, ASSOCHAM has suggested the state to come up with more inclusive tourism policies and programs to take the momentum forward and derive better synergy of tourism and development.
It has also suggested that Goa should focus on aquaculture production through research for increasing production, profitability, area under aquaculture, intensification and diversification of species.
Cashew being a crop of high economy, commercial value and has immense potential for income and employment generation in rural areas, ASSOCHAM has suggested that policy initiatives towards promotion of cashew grower’s cooperatives will definitely widen their perspective.
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Apex industry body, The Associated Chambers of Commerce and Industry of India (ASSOCHAM), in a report by its Economic Research Bureau has stated that Goa has failed to attract investors and growth in outstanding investments in the state is not picking up.
The report further mentioned that the growth in outstanding investments in Goa failed to touch the double digit mark between 2011-12 and 2015-16 barring the year 2014-15.
Outstanding investment growth rate had fallen to 7.5% in 2015-16 from over 23% in 2014-15, it said. Outstanding investments include all projects under various stages of announcement or implementation.
ASSOCHAM further added, “Goa has virtually failed to attract investments as year-on-year growth rate for flow of new investments dipped to about 9% in 2015-16 from a level of 91% in 2014-15, probably due to a fluid economic situation prevailing in the state.”
Investments are crucial in any state as it determines the future growth. ASSOCHAM studied various sectors of Goan economy and its findings are worrisome. Its report said that outstanding investments in manufacturing actually fell in Goa at an average rate of 7.7% every year between 2011-12 & 2015-16 and even electricity has seen outstanding investments dip by 31.8% per annum.
“Declining investments in power sector can dampen the spirits of investor community as energy consumption is positively linked to economic growth, especially manufacturing constituents like cement and steel,” noted the study.
The study also highlighted that more projects are under implementation in Goa as a percentage compared to pan-India number. This means that projects in Goa take longer to implement than in India overall.
ASSOCHAM also said that the performance of industrial sector in Goa is poor as its share to GDP has declined from 45.9% in 2009-10 to 33.2% in 2013-14. The saving grace of the state is services sector and construction sector, which have seen an average annual growth of 11.6% and 10.6% respectively in outstanding investments between 2011-12 and 2015-16.
