11 Nov 2019  |   04:57am IST

Need to create a value chain in Goa for overall economic development

When heavy rains lashed Goa, the roads got inundated and literally blocked all regular supplies to the State. Even the supplies of milk and meat products were hindered. This happens as we are dependent on neighbouring States for regular supplies of such essentials. VIKANT SAHAY spoke to various economic experts to know how these problems can be solved. The issue emerged was to build a value chain and clusters
Need to create a value chain in Goa for overall economic development

With mining going down, the setting up of value chain for better economic growth and job creation becomes all the more important for Goa. We have to differentiate between a financial and economic activity. If one produces something and directly sells it in the market without any value addition there are two factors which creep in. First, the product price will be lower as there is no value addition and secondly, less number of people can avail the benefit of that particular product and very few people can make the money from it. 

With value chain creation, it will be spread across many sections of people who are either a part of the chain and are in its periphery. At the moment many such activities like agriculture, dairy, meat products etc, are being transferred to other States from Goa and very few people are benefitting and these are mostly traders. 

Often every association or chamber or anybody, who represents the government portrays the multiplier effect of a particular industry or the business. Accordingly, for every one direct job created, 6-8 jobs are created. If one takes example of the tourism sector, which claims that for every one direct employment, 70 direct jobs are created, and this may be true in Goa.

In Goa’s perspective, the total impact of tourism in the State has largely positive impact as we get foreign exchange. But gradually the high-spending foreign tourists are lesser than what it used to be a decade ago. There is an immense potential for Goa to create and expand of tourists footfalls and create a tourist-centric value chain. Today, some irresponsible tourists come and stay in a hotels and some of them go around and portray Goa in the negative by drinking, throwing garbage, plastic, and breaking glass bottles on the beaches etc. 

“Today, the net benefit of tourism in Goa is very low because the tourists are not spending while the government is spending ideally on everything from security to surveillance. Goa government's earning is very low and despite this it is taking a brave front. We are spending on travel and tour. Also we are spending on entertainment but not the core thing- tourism value chain, to attract high end tourists,” said Nitin Kunkolienker, former president of Goa Chambers of Commerce and Industry and also the all-India President of Manufacturing Association of Information and Technology. 

Kunkolienker said, “Goa never heard of such things but it is coming up.  Goa can create a high multiplier anyway as the State spending over Rs 100 crore but it is only used to give one-on-one benefit if you do not add value chain.  But if you add the value chain, you will get Rs 500 crore. The State government has to see that all local tourism and IT sector can develop it from Goa that will also compliment the start up ecosystem of Goa.”

Former president of GCCI, Sandip Bhandare, who is also a noted chartered accountant of Goa said, “We are looking at who are able to create jobs for Goans. From ten people being offered by the companies in Goa, to create at least 30 to 100 jobs, we need to support it.”    

President of the Goa Technology Association (GTA), Mangirish Salelkar said, “IT system is present in the value chain, as each activity generates and uses information. Use of technology in any industry is very important because of the multitude of activities designed to achieve a particular purpose, from manufacturing to delivery, today every process can be automated. We have IT companies in Goa doing such robotic business automation and much more to clients worldwide. We need Goan industries to look at services delivered by these local companies.”

Goa's biggest consumption market is available in tourism sector.  So many craftsmen and artists can be roped in too. Beautiful paintings and pottery can be leveraged. We see the pottery business in Goa for a Goan is dying but in China, Malaysia etc, it has been reinvented. “At the same breath, Goa Horticulture Department has not only become traders but also a position of earning salary or getting government facilities. Goa Tourism Department should integrate the effort with agricultural ministry for creating farm production so that a value chain and clusters can be created in the State. Goan artefacts can be pushed to the tourist market. We need a proper plan to integrate all these things and make them a part of tourist value chain today. Jiska raja vyapari uski janata bhikari (if the leader becomes a trader, the people become beggar),” Kunkolienker added. 

“The State government has to integrate Agriculture Department or farm production and we should try to create more farm opportunities. We have to have a training sector from the economic perspective and make farm production a part of the economic development of the State and bring them in the net value chain, since they have land, they can produce and give them the best rate. A lot of people are getting into the farm sector so we can substitute mining pressure to farming.  We need to bring  agriculture, Goan handicrafts, Goan artists and Goan musicians as a part of the integrated value chain and then create a multiplier effect in clusters,” said Nitin Kunkolienker.


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