Goa: Industrial development | Goa State PSC (GPSC) Preparation - GPSC (Goa) PDF Download

Current situation of Industrial development

• Goa, located in the western region of India, shares its borders with the Arabian Sea, Maharashtra, and Karnataka.
• The state has shown rapid growth and is considered one of the fastest-growing states in the country.
• Goa boasts a coastline of approximately 104 km and inland waterways spanning about 250 km, with numerous rivers and estuaries.

Economic Growth and Sectoral Overview

• Between 2004-05 and 2015-16, Goa's Gross State Domestic Product (GSDP) grew by 11.39% to reach US$ 9.3 billion.
• The Net State Domestic Product (NSDP) also increased by 9.95% to US$ 6.96 billion during the same period.
• As of June 2016, the state had an overall installed power generation capacity of 412.45 MW.

Key Industries in Goa

• Goa has a significant presence in industries such as mining, tourism, and pharmaceuticals.
• In North Goa, industries like mining (iron ore and manganese), pharmaceuticals, and iron and steel are prominent, while South Goa is known for mining and shipbuilding.
• Tourism plays a vital role in the services sector, attracting a large number of foreign tourists due to its natural beauty and cultural diversity.
• The state has emerged as a manufacturing hub for various companies producing goods like fertilizers, tires, cement, electrical equipment, pharmaceuticals, and more.

Specialized Sectors and Traditional Industries

• Aside from the major industries, Goa also excels in specialized sectors such as cashew processing and manufacturing of items like fish net making machines, automatic washing machines, printed circuit boards, and pharmaceutical equipment.
• Cashew processing has been a longstanding traditional industry in the state, contributing to its economic landscape.

Industrial Development of Goa

Goa has been actively pursuing various initiatives to enhance its industrial development and attract investments to the region. Below are some key steps taken by the government to promote Goa as an investment destination:

Major Initiatives for Industrial Development

• A sum of US$ 18.33 million has been earmarked over the next five years under the fourteenth Finance Commission to bolster the development of rural areas within the state.
• Planning is underway for the construction of a 10 MLD water treatment plant at an estimated cost of US$ 1.83 million.
• The state government has proposed the installation of 100 solar-powered dual water pumps in remote areas of Goa, with a budget of US$ 3.05 million, receiving 50% assistance from the Government of India.

Special Economic Zones (SEZs) in Goa

• As of July 2016, Goa had seven officially approved and three notified Special Economic Zones (SEZs). However, there are currently no operational SEZs in the state, nor are there any SEZs that have received in-principle approval.

Summary of State Initiatives in Goa

• The state is enhancing the logistics sector through the formation of a dedicated logistics group and the construction of bridges to address current deficiencies in logistics and warehousing.
• The formation of the Goa Pharmaceutical Manufacturers' Association (GPMA) aims to unite pharmaceutical manufacturers in Goa.
• An inclusive IT strategy is in the pipeline to bolster the Electronic System Design and Manufacturing (ESDM) sector within the state.
• Promotion of public-private partnerships by establishing a funding corpus to boost tourism is actively pursued by the state government.
• A new tourism policy is in progress to drive overall tourism development, engaging private entities to invest in and develop infrastructure in the state.

Industrial Development Policies in Goa

• National Ranking: Goa ranks fourth in the nation for business friendliness, according to a study by the Rajiv Gandhi Institute for Contemporary Studies and Confederation of Indian Industry.
• Investment Appeal: Goa is considered a favorable destination for investment due to its investor-friendly and environmentally conscious approach.
• Economic Indicators:
  • High Per Capita Income: One of the highest in the country.
  • High Literacy Rate: Among the highest in India.
  • Infrastructure: Noted for its extensive road, rail, air, and sea networks.
  • Low Crime Rates: Contributes to a safe business environment.
  • Positive Labor Relations: Harmonious trade union-management relationships.
• Government and Institutional Support:
  • Economic Development Corporation (EDC): Focuses on promoting economic growth in Goa.
  • Goa, Daman and Diu Industrial Development Corporation (GDDIDC): Facilitates industrial development.
  • Goa Handicrafts, Rural and Small Scale Industries Development Corporation (GHRSSIDC): Supports rural and small-scale industries.
• Industrial Policy of Goa – 2003:
  • Industrial Parks and Estates: Development of designated areas for industrial activities.
  • Infrastructure Development: Includes roads, power, water, and communications.
  • IT-Enabled Services: Support for the integration of technology in business operations.

Other Advancements

• Trade and Port Significance: Goa's productive and valuable ocean resources make trade a significant industry. The operations at Mormugao Port Trust are especially profitable, as Mormugao Port was designated a Major Port on December 2, 1963.
• Historical Importance: Mormugao Port is one of the oldest ports on India's west coast and is a major exporter of iron ore, handling about 18 million tons annually and accounting for roughly 50% of India’s iron ore exports.
• Cargo Increase: Besides iron ore, there has been a steady rise in the handling of liquid bulk and general cargo since 1963.
• Fishing Industry: Fishing is also a major industry in Goa, with people from 8 out of the 11 talukas engaged in fishing activities. Marine fishing involves anglers from 42 villages.
• Fishing Fleet: The state has over 30,000 fishermen, with 12,000 actively fishing. The registered fleet includes 1,134 mechanized vessels, 755 country boats, 1,963 non-mechanized country boats, and 6,463 nets.