The Hindu Business Line : Goa - Business and pleasure: The growing years

Goa is no longer just a coastal tourist paradise blessed by silvery and pristine beaches, historical temples and churches. It is fast emerging as a growing economy with Goans asking for sustainable and eco-friendly industrial development through a participative process. The economy of the tiny State — virtually the size of a district — has been growing at a faster pace than that of the country as a whole. Its primary concern is to mobilise resources and generat e assets to sustain the high growth and ensure that it is inclusive.

The high growth has brought with it its own set of problems.

Rapid urbanisation

There is unprecedented pressure on infrastructure facilities. Rapid development, coupled with declining agriculture, is turning Goa into a city-state with nearly 60 per cent of its population now categorised as urban. Goa’s villages, especially in the coastal belt, are fast getting converted into unplanned concrete jungles. Traditional occupations like fishing are facing dangers of extinction.

Booming Mining

Goa has a strong iron ore mining base. Unlike in the rest of the country, Goa’s mining industry is in the private sector. While the volume of iron ore exports has more than doubled in the past 5-6 years, driven mainly by Chinese steel production, the international prices have increased 150-160 per cent, contributing dramatically to foreign exchange earnings. Goa today earns over Rs 5,000 crore annually from iron ore exports. Around 10,000 families are directly or indirectly dependent on the industry. The mining activity however calls for huge investments in the restoration of ecology and re-laying of infrastructure.

Tourist Paradise

Tourism is a major contributor to the State GDP, thanks to the region’s natural beauty and other tourist attractions. Putting behind its past as a “cheap destination” on the international circuit, Goa has now emerged as a long-haul winter destination and with year-round attractions. The hinterlands are being developed and there are efforts to promote medical and educational tourism on public-private partnership basis.

Industrial Development

Goa is keen to attract investments in the biotech, food processing, agro-based industries, IT and IT-enabled services and entertainment sectors. The State has developed into a pharma hub and is attracting investments. Of the sector’s current turnover of Rs 1,250 crore, almost one-third is exported and is, therefore, of international quality.

Balancing act

There are 20 industrial estates in Goa set up by the Goa Industrial Development Corporation. There are about 7,100 small-scale units, with an investment of around Rs 350 crore, which employ around 40,000. Around 209 medium and large-scale industries, with an investment of Rs 6,108 crore, employ over 25,600. As tourism is very eco-sensitive the State while promoting industry is also called upon to ensure that industrial pollution does not harm its tourist potential.

Entertainment

With Goa declared the permanent venue for the International Film Festival of India (IFFI), the State led by the Entertainment Society of Goa (ESG) is making efforts to develop entertainment as a significant revenue model. It has so far invested over Rs 150 crore in creating infrastructure and screening theatres, to help turn Goa into a permanent destination for film and related entertainment festivals.

Information Technology

An IT complex

The Infotech Corporation of Goa was set up to develop IT-related infrastructure, promote IT-enabled services and implement e-governance. Goa is looking to develop call centres and incubation centres for IT entrepreneurs. It is working on projects like the IT Habitat.

Education

The Goa Education Development Corporation was set up to turn the State into a centre of excellence in education and attract international institutions. Apart from Goa University, BITS Pilani and Goa Institute of Management have presence here.

Infrastructure

The State Government has sought funds from the Centre for infrastructure projects. It is seeking a special-economy status for tourism to fund its infrastructure projects including improved water supply, sanitation, sewerage, roads and public transport network. Goa is also expanding and upgrading its Dabolim international airport and a proposal for setting up another international airport at Mopa in north Goa has been mooted. Goa is reasonably well-connected by a railway network.

Ship building

Ship repair has been a traditional activity in the State. Goa’s shipyards concentrate on building small ships including ore-carrying barges, passenger and luxury launches and small carriers. Goa Shipyard Ltd is an undertaking of the Ministry of Defence which builds state-of-the-art vessels for the Indian Navy and the Coastguard.