The efforts of the Goa State government must be applauded for hosting the Invest Goa Summit for the first time in order to attract medium enterprises and investors instead of focusing on giants like Tata, Birla, Ambani and Adani.
Many investors showed their interest, while some even inked MoUs with the State which is a hopeful scenario for the Goa industry sector. As stated by the State’s Minister for Industries, Goa does not have huge land required for giant industries and so, the government invited green businesses such as logistics and warehousing, IT, food processing, pharmaceutical, electronics and biotechnology. This could be considered as a plus point. Some of the business groups signed MoUs with the government after the state’s assurance of providing the required facilities, which could generate employment.
A pact with the TVS Group for erecting a logistics and industrial park worth 125 crore is one such outcome of the summit, which is expected to generate around 1,000 job opportunities. Goa’s own Dempo Group too assured of building a five-star 200-bed resort which will also generate employment opportunities.
Attracting and, more importantly, sustaining investment from outside the State shows the calibre of the government, as it is incredibly difficult. No investor would take the leap of faith to invest in a region unless given concrete assurance and provided with ideal conditions. It also requires for the government to deliver time-bound clearances, otherwise investors then opt for alternative States. Given the exit of mega projects in Maharashtra over the last four years, which led to politics between Thackeray and Fadnavis, it is not easy to attract investors to the State as they look for a certain level of reliability.
If a State as small as Goa, with the mere budget of Rs 27,000-28,000 crore is aiming to bring in more investment, then only focusing on infrastructure is not enough. This demands for the State government to hold a certain reputation and the investors during Invest Goa Summit may have gauged it. The Industries Minister has stated that more companies will be signing agreements with the government in the near future. If things move ahead as per the government plans, and companies are convinced to pour in huge investment, then the State will not have to beg to the Central government every now and then for assistance. It is a common pattern that the projects built legally in Goa do not attract opposition. However if the locals are not receiving rightful market rates for their land, if the natural resources are polluted by the waste water discharged in the rivulets without treatment, if the projects are causing air and sound pollution for the locals then they raise their voices, which is expected. This is what has led to a common image of Goa as an anti-development state. When the government does not address the grievances of the people’s agitation, they knock on the doors of the courts for justice. Naturally, this affects the potential investments in the state.
Although the government has appealed to the environmental activists to discuss the issues with the government before moving the court, locals who have raised doubts through the official online portals are not given any valid explanations whatsoever. Therefore, mutual understanding is expected from both sides. It is agreeable that the revenue coming through tourism is not enough and given the decline in international tourists in the last few years, Goa will have to focus on several other sectors to build a sustainable economy.
Invest Goa Summit could be considered as the first big step in that direction, which has succeeded in attracting national as well as local investors. Apart from Dempo Group’s proposal to build a five-star hotel, the Pai Kane Group will be setting up a factory at in Tuem-Pernem to build engineering equipment. Iconic beverage brand Rasna has also shown interest in manufacturing cashew-based milk shakes using Goan cashews. The company has also inspected industrial estates in the State to choose an ideal site. The Goa government will also be creating an independent industrial estate which will solely deal with food processing. The good news is that the place for the project has been nearly finalised.
Since Goa is ranked fourth for manufacturing pharmaceutical products, the State government has also decided to set up an independent industrial estate to manufacture medical equipment. However, the speedy implementation of the announcements by the government is necessary. And if projects which do not cause damage to the State’s environment are willing to expand their operations here, then the Goan public too should welcome them with open arms.
