Goa has a well thought out and holistic Investment policy. We also have an amazing report submitted by National Skill Development Council through extensive survey in Goa.
I believe the architects of Goa Investment Policy had in mind generation of employment by encouraging ecologically sustainable projects encompassing employment opportunities in line with aspirations of local youth. The goal for employment generation was 50000 and investment required to generate this was estimated at 25000 cr.
The employment of 50000 is the real goal – the investment to reach this goal is only a means to this end and is not an important parameter for tracking.
The ratio of 50:25 that is employment of 2 for every 1 crore investment apparently stands true for larger projects. Smaller projects the ratio can be much better. A quick survey we conducted for SME’s manufacturing as well as services sector showed that the ratio is much more than 1:8. In short, the employment goal can be much easily met if there is equal focus on smaller SME projects as well.
For SME’s to thrive however there is a need for larger projects to generate the traction. In short, it should be a good balance between large and small projects. Larger projects also require a much higher gestation period but smaller projects can get off the block quickly and start generating employment. Since the employment density in SME’s is much higher the question we need to ponder on is how can we encourage and support Start up, and growth of SME’s.
Just as the Aam Aadmi needs Roti, Kapda and Makan, the Aam (SME) Industry requires support in terms of Finance, Market and Ease of doing business (Which includes not only statutory compliances and processes but also easy access to Business premises). The requirement of power and water for this sector is generally much lower.
How can we create a supporting environment on these fronts?
1. EASE OF DOING BUSINESS:- Here I would like to draw the attention to a solution brought in by the Central Government – ‘Udyog Aadhar’. In the past, The Permanent Registration or EM II (Entrepreneurs Memorandum Part II) which was a proof of the entrepreneurs running an industry needed nearly 2 years to go through the process and get the certificate- Its alternative the online Udyog Aadhar which is more a self-declaration now requires only 5 minutes. The State government too can follow these principles.
2. BUSINESS PREMISES:- Considering land scarcity why cannot GIDC go in for construction of multilevel gala type sheds with all requisite services in place. So, that the aspiring entrepreneur can just occupy the gala and start his business.
In fact, instead of 10000 sqm of land being divided among 10 entrepreneurs at 1000 sqm each- More than 100 gala type sheds ranging from 100 to 200 sqm can be constructed and allotted or leased to 100+ entrepreneurs within the same land area. Thanks to farsightedness of some of our political leaders we have industrial estates spread in each taluka. A gala type shed cluster in each one of these therefore will be a big boon to aspiring local youth. GSIA has been pursuing this with government.
3. MARKETS:- Manohar Parrikar, Defence Minister of India has put up an interesting model wherein a large defence order is being executed by Goa Shipyard and along with CII and Directorate of Craftsmen Training are working on skill trainings to improve employability and efforts to identify vendors in Goa for out sourcing of different requirements of the projects, thus, generating employment opportunities locally.
HAL taking over GAAL facilities in Honda to set up MRO facility for aeroengines besides other facilities is also going to play a similar role in North Goa. A few similar projects can act as mother industry which can sustain number of SME’s.
I believe every Govt department needs to look at how they can maximize local procurement so that more and more opportunities for local employment are created. The preferential Price Purchase scheme under the chairmanship of Industries secretary and implemented by GHRSSIDC needs to be strengthened. Artificial bottlenecks stemming out of bureaucratic red tapes need to be done away with. How about government pushing the projects cleared under IPB to follow these concepts of maximising local procurement as also Mopa airport, Konkan railway projects etc.
4. FINANCE:- Here I believe the Central as well as State Governments have come out with good schemes but implementation of these by the financial institutions is an issue. As managing trustee of GEMS and during the process of mentoring young entrepreneurs, I have come across many such cases which require just a small change in attitude for channelizing entrepreneurial enthusiasm into formation of new enterprises to help create job creators.
The financial intervention at the right time instead of offering it after the unit turns sick is much more desirable. If we have a mechanism coordinated by one of the Business association like GCCI focussing on this aspect I am sure a lot can be achieved.
In short besides carrying out their activities on multiple fronts, if each of the active Business associations GSIA, CII, BNI,GEMS, GCCI take a lead to focus on one aspect of entrepreneurial support and government institutes a task force for each of these, the employment generation objective can be achieved much faster.
