CHAPTER IV SOCIO ECONOMIC AND INDUSTRIAL PROFILE OF GOA

Transcription

1 CHAPTER IV SOCIO ECONOMIC AND INDUSTRIAL PROFILE OF GOA 4.1 PROLOGUE The Directorate of Trade and Commerce (DITC) is responsible for the promotion, development and regulation of Micro, Small and Medium Enterprises/Industries within the State of Goa. Besides this, DITC also plays a key role in facilitating and coordinating activities related to industrial development. Goa was traditionally a rural economy with a strong mining base. Now, Goa with so many developments has slowly transformed into a fast growing industrial centre. DITC is involved with policy planning, putting in place guidelines, an administrative framework and implementation of both State and Central Government sponsored schemes. DITC's mission is to create economic growth through accelerated industrial development, working ceaselessly towards creating sustainable employment opportunities mainly for the people of Goa. To this end DITC actively encourages environment friendly industrial development, facilitating and synergizing the State and the private sector to create an environment in which existing industry can grow and expand and new industries can take root and prosper. DITC provide aid, mentoring and various support systems to entrepreneurs. Their website is providing all information, details of policies, schemes, registration procedures, citizen's charter, business directory, also an entire section on the classification of businesses that are encouraged in the State. They are also providing contact details of DITC office bearers who will guide entrepreneurs who wish to set up units in the industrial or service sector and are also providing information about several schemes of the Government of Goa and the Government of India which are implemented through DITC.

2 HISTORICAL BACKGROUND Diag. 4.1: Map of Goa State Nineteenth century Goa saw a new class of elite, the result of education available to them. This helped create a bourgeoisie class that dominated business and interacted with the outside world including Goan in India. Portugal already had its Associagao Comercial de Lisboa in This prompted Goans to visit Portugal. Mr. Luis Guilherme Dias from Goa was called in Portugal on 7 th July 1907 for a meeting of like-minded businessmen. The meeting decided to form and establish the Associagao Comercial da India Portuguesa an association of businessmen which was formally established on 3rd September, This alliance included a cross -section of different businesses in Goa - from Margao, Sanvordem, Mapuca, Ucassaim, Saligao, Verem etc. There were wholesale dealers, retailers, wood businesses, pharmacy owners, binding enterprises, cloth merchants etc. (Denis L. Cottineau de Kloguen, 1988)

3 Great difficulties were felt by the merchants who imported or exported goods or brought them from the other side of the river Mandovi as there was no jetty which could be used to load and unload the cargo. Transporting the goods by sea was practical and cheaper as road transport was expensive. The new committee requested the government to immediately start the construction of a new jetty near the Dock of Nova Goa for loading and unloading of cargo. In 1916, Associagao (Now known as the Goa Chamber of Commerce and Industry) catalyzed the steamship service between Goa and Portugal to boost trade between the two countries. In 1954, when the Government of India imposed an economic blockade against Goa, the Chamber arranged for a Portuguese shipping company to touch Goa directly to minimize hardships of the local population. 4.3 POST-LIBERATION On 19 th December 1961, the Indian Government liberated and took over Goa. In the new scenario after liberation, the Associacao became very active and worked to solve the difficulties faced by the business community and the community in general due to political change. The Chamber took up the various problems confronting the business community with regard to the taxation and made several representations on the subject. Prominent among them was one with regard to the Status of the Hindu Undivided Families in Goa, Notices under Sec.148 of the Income Tax Act, Registration of Firms formed under the Portuguese rule, Exemption of Interest on Loans borrowed from foreigners prior to extension of Income Tax Act of Goa, Daman and Diu. On 12 th April 1962, the members met at the General Assembly and decided that they would change the name from Associagao Comercial da India Portuguesa to Goa Chamber of Commerce. In 1968, the Chamber framed the new Bye-laws and changed the name to Goa Chamber of Commerce and Industry (GCCI).

4 Goa's economy was agrarian based. However, with the signing of the Anglo-Portuguese Treaty in 1878, tax-free imports were allowed that changed the Goan economy. The nature of consumption underwent total transformation during the years the Treaty was in force. It must have led to the establishment of more commercial shops, which sold the imported products. It would be pertinent to mention that Goans had achieved a period of renaissance in the late nineteenth-century. (Aureliano Fernandes,1997), Liberation of Goa also saw the growth of industry in Goa and a change from a mainly agricultural state. It was the need of the hour for the Chamber to orient business and to train its members to become successful entrepreneurs. The Chamber decided to undertake a study to assess the potentialities for the economic development of Goa. It felt that mere expansion of the existing industries would not solve the problems. For successful transformation of the existing trading economy into an industrial one, establishment of a large number of small scale industries rather than a few large scale units was required. The GCCI under Presidentship of Mr.V.D.Chowgule interceded with the Central Government to notify Goa as an industrially backward area so that it would benefit from the various concessions available to industrial units set up in such notified areas. On 2nd July 1960, the Associacao purchased a plot to have its own building and a committee was formed to collect funds for the construction. The Chamber's building in Panaji was renamed as Narayan Rajaram Bandekar Bhavan on 10th November 2006, due to the generous contribution of Rs. 50 lakhs made by Shri Narayan Bandekar. Shri Pratapsing Rane (CM), Mr.Digambar Kamat, (CM) and, Mr.Nitin Kunkolienker, President of GCCI, Shri Luizinho Faleiro (Minister for Industry) and such other Leaders are instrumental to develop Goan Mining, Tourism, Manufacturing, IT, Barge industry, Fishing, Agriculture and Water Sports. (Jose Nicolau da Fonseca,1994),

5 The Chamber has an active Women's Wing which was established in 2005 with the sole aim of encouraging entrepreneurship amongst women in Goa. It is committed to aiding women entrepreneurs in raising their level of professionalism and creating avenues to send their products beyond the geographical boundaries of Goa. It is very active in its various social endeavors and particularly commendable is its annual exhibition- Asturi' a unique opportunity, especially for women from the weaker sections to sell their product. Presently there is already 1, 00,000 unemployed youth in the State. Roughly about graduates come out of the Goan colleges every year. The Government on its own will not be in a position to provide employment to these youths. In its endeavour to address this issue, the Chamber has started coordinating with industries to provide trade specific advance training to enhance employability of Goan youth. (Prabhakar S. Angle,2001). 4.4 DEMOGRAPHY Goa's area is 3702 Sq. Km. Its shoreline of 105 kms. The uppermost point - Sonsogor is at the elevation of 3827 feet above sea level.goa consists of 2 districts and 12 Taluka having 44 towns of which 14 are Municipal towns and 30 towns as per census definition. Beside this, there are 362 villages and all are accessible by Pucca Roads. Population million indicates a small minuscule demographic State in India However Population Density-364 per sq. km reveals its swarming state of socio-economic coverage. The sex ratio is 961 females to 1000 males which are inexcusable like Ratnagiri district in the neighborhood. With a literacy rate of 82.32%, Goa is the second most literate state in India. The literacy rate in males is 88.88%, whereas in females is %.

6 RURAL DEVELOPMENT Diag. 4.2: Map of Industrial Estates of Goa With a view to develop a sustainable village economy, various schemes have been initiated to generate rural employment and to raise the standard of living of the rural poor. These schemes are Swarna Gram Swarojgar Yojana, Indira Aawas Yojana, and Mahatma Gandhi National Rural Employment Guarantee Scheme. 4.6 POWER The power generated by the private sector in the state and available to the state is 36 MW. The present peak demand requirement of Goa is of the order of 550 MW. To meet deficit, various short term and long term measures are taken up. However, the State does not have power generation facilities of its own and is dependent on the power allocated from the Central Generating Stations in the Western and Southern Regions, wheeled through the

7 neighboring State Grids, which is to the tune of 454 MW. Category wise consumption of power show that industries account for 56.83% followed by Domestic users %, waterworks, public lighting etc 4.99% commercial purpose 6.93% and lastly irrigation/agriculture 0.60%. 4.7 AGRICULTURE Agriculture was the primary occupation of the people before liberation with about 59 % of Goa s population engaged in agriculture and allied activities. After liberation, with the rapid development in tourism, mining, industries and other service sectors, growth under this sector gradually went on declining and as per 2001 census only 15 % of the State s population is engaged in agriculture and allied activities. The rapid development of nonagriculture sectors of the economy has made the farmers to sell agricultural land in favour of industries. Moreover the farmers have disposed off their lands in view of the high prices offered for their land, as compared to the very less income obtained from cultivation. Due to this, the land under crops is on a decline. However by 2012 it is estimated that the population depending upon agricultural increase up to 22%, since 2001 onward, the Government has taken various steps to take up agriculture and horticulture development by giving loans and motivation for farm mechanization and incentive schemes such as contract farming, linking of farmers to marketing system for disposing their agricultural produce and subsidy support offered on a agricultural inputs and machinery / equipments, ranging from 50% to 90%. The Minimum support prices and farmers training, efforts to bring fallow land under cultivation etc., have gone a long way in reversing the downward trend seen under this sector in the past. However, in the case of mango crop, the area under cultivation has increased by three folds since the time of liberation, In case of crops such as groundnuts, sugarcane, pineapple and vegetables, there has been an increase both in area and production of these crops. The following are the potentials in agricultural sector.

8 Significant Indicator revealing the state of agriculture sector Similarly, there is a huge demand for poultry products. There are a number of small poultry units in the State, however local supply is less than the requirement. This invariably calls for change in approach towards Poultry and Dairy farming in the state. The total geographical area of the state is 3702sq.m. ( ha) of which net area sown during is ha. About ha are sown more than once. Out of the gross cropped area of ha, food grains occupy ha (36.14%), horticulture crops ha (60.95%) and others like sugarcane & oil seeds occupy 4827 ha. (2.91 %). The total irrigated area is about ha. The average yield of cashew nut were 234 Kgs/Ha, Rice were 2467 Kgs/Ha, Coconut were 5006/Ha, while that of Ragi was1280kgs/ha Production of cash crops coconut was Rs million (2013) The Export of fish through the Mormugao harbor during the year was tonnes, which realized a foreign Exchange worth Rs crore. The area under forest cover is 1.26 lakh ha. The Government forest area is estimated to cover 95% of the total forest area. The present demand for milk in the state is around 3 lakh litres per day which is growing at the rate of about 10% annually. The local production is around 1.65 lakh litres and the shortfall of 50% is met by the inflow of milk from the neighboring states. Most of the needs of the state for dairy, poultry products and their processed products are met from supplies from the neighboring states. The local supply of birds is less than 0.50 lakh per week as against the current demand of 1.25 to 1.75 lakh broilers per week (2013). (Statistics Department, Govt of Goa, 2014)

9 COOPERATIVE MOVEMENT Table No. 4.1: Composition of Cooperative Societies Sr. No. Particulars Position as on 31 SI March No. of Coop. Societies Membership (No. in Lakh) Paid up Share Capital (Rs. in crore) Working Capital (Rs. in crore) Deposits (Rs. In crore) Consumer 6 Business (Rs. in crore) Source: Directorate of Planning, Statistics & Evaluation, Govt. of Goa. 4.8 ECONOMIC DEVELOPMENT CORPORATION OF GOA (EDC) EDC Ltd. was originally named as Economic Development Corporation of Goa, Daman and Diu Limited, and was established in 1975, as a Development Bank, enjoying the twin status of a State Finance Corporation (SFC) and an Industrial Development Institution. Over the last 38 years of its existence, it has been a catalyst for Economic Development and mainstream Industrial growth in Goa. Ever since its inception in 1975, EDC Ltd. has played a pioneering role in the economic development of Goa. Driven with the motivation to catalyze industrial growth in Goa, EDC Ltd. has ventured into new avenues and scaled new heights. It has excelled in its role as a Development Financial Institution by demonstrating exceptional vision and providing timely finance and guidance to entrepreneurs and industrialists.

10 The history of EDC is a repertoire of milestone achievements. It has already extended financial assistance of over Rs. 800 crores by way of term loans to more than 5000 industrial and service sector projects. Some of these projects have resulted in generating large-scale economic activity and crores of rupees in revenue for the State. Thousands of Jobs created by these units, directly and indirectly, has certainly helped the State to ease the problem of unemployment Similarly, around the same time, Goa Antibiotics and Pharmaceuticals Ltd. (GAPL) was setup in joint venture with Hindustan Antibiotics Ltd. (HAL), to give a boost to the Pharma sector in the backward Pernem taluka. After the exit of HAL in 1987, EDC continues to run the Company as a wholly owned subsidiary which has shown remarkable improvement, over the last few years. GAPL production facilities have been accredited with WHO- GMP certification. Goa Electronics Limited (GEL), a wholly owned subsidiary of EDC, started in technical collaboration with Electronics Corporation of India Limited (ECIL) and Bharat Electronics Ltd., has been providing IT support to Government departments in the State of Goa. GEL has developed a wide spectrum of services and products to meet the growing demands of Information Technology focusing on the Government Sector. Prisons Management System (PRISM) software developed by GEL won the prestigious National CSI-Nihilent Award 2009 in the GC/GG Category. EDC had also set up other companies such as, Goa Fans & Electricals Ltd. in Joint venture with Crompton Greaves, Titan Time Products with Titan Industries, Goa Time Movers with HMT, Goa Telecommunications & Systems Ltd., etc. Some of these companies have either been taken over by the joint venture partners or by the private sector. EDC takes pride in its versatility that is a pre-requisite in today's challenging and volatile business environment. The characteristic of an

11 illustrious organisation is its ability to bounce back, after sustaining setbacks. EDC has geared itself to diversify from a lending institution into a result oriented institution of trust in the service sector. Now completing 38 years of meritorious service and fruitful existence, the EDC Ltd., rededicate it to creating a vibrant Goan Economy. Joint Ventures and Subsidiaries: EDC has spearheaded diverse industries of our State towards success. It has played a pioneering role through its joint ventures and subsidiary companies in the field of engineering, pharmaceuticals, electronics, auto accessories, computer knowledge, etc EDC can take pride in having promoted Automobile Corporation of Goa Ltd. (ACGL) in joint venture with Tata Motors in 1980, at Honda, in the backward taluka of Sattari. This major bus body manufacturing Company encouraged the development of small and medium industries in Goa, via the ancillary route. EDC also established Goa Auto Accessories Ltd. (GAAL) as a wholly owned subsidiary at the same place, which even today plays the role of a major ancillary to ACGL.. (A.C. Khanna and others, 1998) 4.10 INFRASTRUCTURE The road network and connectivity is excellent with Goa's road density pegged at 2613 km for every 1000 km of area (national average is 730km/1000km). Goa is amongst the few Indian states to have 100 per cent rural electrification. As on 31 s1 December 2013, the number of motor vehicles registered in the state stands at 7,22,345. On an average, over 50,000 vehicles are being registered every year. It is evident that about % of vehicles are in the category of two wheelers followed by cars and jeeps including taxis about 20.19%.

12 Motor Vehicles per lakh population are 44,521.. (2013) The total no. of buses plying in Goa on 437 routes are (2013) Cargo loaded in Goa in are lakh tones while unloaded was lakh tones. There are 1,82,000 Landlines in Goa. (2013) There are 268 post offices in Goa. (2013) The water capacity of Goa is MLD out of this the water consumed in Goa is MLD. No. of taxis plying in Goa (black & yellow) were (2013) (Statistics Department, Govt of Goa,2014) 4.11 WATER RESOURCES The present water supply demand in the State is catered through seven regional water supply schemes installed at Opa, Assonora, Sanquelim, Selaulim, Canacona, Dhabole and Chandel. The Salaulim water supply scheme is the largest amongst all the regional water supply schemes having capacity of 160 MLD covering most part of the South Goa district. The Central Water Commission (CWC) has assessed the water resources of Goa estimated at 8,570 mcm. However, due to topographical, geological and other constraints the level of utilization of resources for irrigation is only 1,465 mcm. The Government has spent negligible amount in Verna Industrial Estate for rainwater harvesting and ground water recharge schemes ROADS The total length of surface and un- surfaced roads in the state is 10, kms as on 31 st March, 2011 The total length of surface and unsurfaced roads in the state is kms. as on 31 st March 2011, (P. Poovendran (Ed.), 1996).

13 SEWERAGE & WATER SUPPLY Various measures are adopted to improve the drainage systems by removing congestion through desilting, river training, etc. not only in the coastal belts but also in urban areas to protect the same from getting flooded due to congestion of drains passing through these areas. Up-to Oct.2011, a length of about Kms has been covered with protective measures. Individual Sanitary units were constructed benefitting a 2 third population of Goa. At present, the average water supply level in villages is 82 LPCD as against 40 LPCD as per the norms of Government of India for rural areas INSTITUTIONAL FINANCE (Statistics Department, Govt of Goa,2014) As on 31 st March, 2013 there were 40 scheduled commercial banks and private banks with 586 branches including 188 rural branches. The estimated population covered per branch is about The aggregate deposits of Rs crore as on September, 2011, has registered an annual growth of 16% over the previous year. The Credit-Deposit (CD) ratio of the State as on March 2011 is 32% which is much below the desired level of 40% EDUCATION Goa has a total of 2317 institutions with an enrolment of students (2012). No of ITI's in Goa are 15 while the no of students in ITI's are Women students in professional as well as non- professional colleges were The Matriculate passed are and graduates and post graduates is 5113 (2012) (Statistics Department, Govt. of Goa,2014).

14 HEALTH The no. of Government hospitals is 32. The no of private hospitals is 123. The no. of Beds in Govt hospitals is 2841 and that in Pvt. hospitals is The doctor population ratio is 1:586. The bed population ratio is 1:279. Total number of health centers in Goa including maternity, dental, sub centers and medical dispensaries is Area Served per hospital is sq kms. No. of patients treated indoor at government are 1.23 lakhs (2010). No. of patients treated in OPD's of Government hospitals were 13.5 lakhs (2010). Population served per hospital were 9624 lakhs (2010) (Statistics Department, Govt of Goa,2014) 4.17 GSDP GSDP of the State at constant prices has registered a compound annual growth rate of 8.5% during the period 2006 to 2011, and 10.7% during the first two years which is higher than the National target of 9% fixed by the Planning Commission for the Eleventh Five year Plan period. The GSDP at current prices has registered a compound annual growth rate of 13.5% during the period 2006 to 2011.The per capita GSDP at current prices in is Rs. 1,31thousands (Statistics Department, Govt. of Goa, 2014) 4.18 INDUSTRIES: A BRIEF SCENARIO Goa, the 25 th Indian States, liberated from the Portuguese in December, 1961 and was granted statehood in May Goa has emerged among the most preferred destinations for all segments of domestic and

15 international tourists. Prior to its liberation, mining and trading were the major activities. Soon after liberation, some local entrepreneurs set up their units in Goa and a few major industries such as Zuari Agro Chemicals, MRF, etc. set up shop in the State. The efforts at industrialization were lagging which prompted EDC to take the lead in the public sector Goa today has over 8,535 small scale industrial units, 157 large and medium scale industries employing over 60,000 people. (2013) In all, 315 micro, small and medium enterprises with an investment of Rs lakh, having an employment force of 2854 were set up during the year Estimated average number of workers employed daily in registered factories was in The total number of sheds in Industrial estates is 782 in The Private joint stock companies and public joint stock companies are about 6000 and 400 respectively in (Statistics Department, Govt. of Goa,2014) 4.19 TOURISM After mining, Goa gets more revenue from the tourism sector but recently, after the Shah Commission probe, 50 per cent of the mines were banned from mining operations, and the effect was seen on the state revenue. GCCI has taken this matter very seriously, so that the loss which is borne by the state due to lack of mining will be generated through tourism. The Goan tourism sector has a bright future awaiting. However Ralph de Souza, President, Travel and Tourism Association of Goa (TTAG) say If we look at the near future. I do not think we can increase the quantity of tourists, as we do not have the required number of slots for landing at the airport. As far as the number of rooms is concerned, we need at least 2,000 to 2,500 rooms in the four and five star categories. There is great demand in this

16 area. This shortage has prompted many countries to put out advisories cautioning against visiting Goa during the peak tourist season like Christmas and Carnival without ensuring proper reservations. This has dented Goa's image as a tourist heaven. Besides the basic amenities like better electricity, water and parking facilities, there must be proper sewage system and focus on cleanliness. Goa Chamber Of Commerce and Industry vice-president Mr. Manguirish Pai Raikar said, "Clean tourism should be practiced in Goa. We have been seeing that Goa`s name is deteriorating and Goa name is tainted with crimes like rape & drug. Clean tourism should be promoted in Goa, family people should come and the strategies should be framed accordingly." Meanwhile when it comes to tourism all the aspects should be kept in the mind because the real identity of Goa is tourism. Goa is not only the world's best tourist destinations on the map of India but has a special place in the minds of the people. For the Goa Legislative Assembly election which was held on March 3, 2012, political parties have promised in big way regarding tourism. On the other hand Goa Chamber of Commerce & Industries (GCCI) has been repeatedly warning to take the policies related to tourism seriously. Goa is a beautiful place and people from various parts of the world come down to Goa, some people simply love to be around the sea water, whereas others prefer water sports in Goa. Each year approximately twentyfive million foreign tourists visit Goa. The revenue which is generated by the tourism industry in Goa is huge and therefore the political parties have made big promises in their Manifesto. All-India Congress Committee general-secretary in charge of Goa desk, Mr Jagmeet Singh Brar said, "Goa is the world s tourist hub and people from all around the world come to Goa and the reason for this is that love which is provided by the goans for the tourists is like a respectful hospitality

17 status. That`s the reason Goa is a good tourist spot for the world and its in the top agenda of the Goa tourism as to what will be Goa`s future as a tourist spot." The following tourism potentialities unveil the realities Goa attracts almost 12% of total foreign tourists arriving in India. Goa contributes 15% of the total tourism related earning, in the country. The estimated foreign exchange earnings to the country is million US$ in That means foreign exchange earnings from Goa alone will be about 700 million US$ per year. 4 lakhs foreign and 23 lakhs domestic tourist visited the state (2013) To cater to increased tourist traffic in-flow, hotel bed capacity has gone up to as on December, Around 50% of the tourist visiting the state is from the countries of U.K., Russia and Germany. About 4 lakhs of people are involved in catering the needs of tourists. (Statistics Department, Govt of Goa,2014) Creating tourism experiences for tourists in Goa is the aim of any tourism destination stakeholder. This has to be borne in mind when the developmental platform of tourism is pleaded for Goa. A tourism destination is as robust as its weakest link or weakest spot. The proper planning as far as tourism product destination and development is required and that is absent in Goa where weaker spot exist like any other place in India. An experience of such weakest spot is instrumental to defame the tourist destination and it also discourages the tourist to visit the place once again. Hence the planning and further tourisms development have been emphasized in Govt. Budget and policies. (Jeffries, D.J., 1971) However there has not been any pragmatic existence or execution due to the local people hurdles, prevalent ownership rights deprives the property acquisition crippling the development of tourist, non-coordination as between local government bodies, voluntary and isolated costly ventures (star Hotels for example) by the entrepreneurs result

18 frequently charging more and more exorbitantly to tourists, un-hygienic and ill odor surroundings veiled by mosquitoes and such other diseases germinating insects! There is a need to improve surroundings and also new innovative tourism. Foster (1985) says that the search for, and developing and launching of new products is essential for the long term survival in tourism. The slow rate of change in demand for tourism products disguises this necessity. This statement indicates that there is a need for dynamic activity, which can look at the product development process effectively throughout the Goa. Not only the Beaches, but Goa`s cities are also liked by many tourists although tourists have to face some problems too. A tourist from Mumbai, Miss Ekta comes from a middle class family says that expensive transport doesn t come in her budget so therefore the ride should be the best available and should be inexpensive. Cheap lodging and boarding are insisted by many tourists. That`s the reason why BJP has announced in its manifesto of spending Rs 250 crores in the tourism sector. Former Chief Minister of Goa and candidate from Panaji constituency, Mr Manohar Parrikar, says "In the coastal belt infrastructure development is required as the sea has become dirty, there are no proper bathrooms and toilets available for the tourists, no proper parking facilities, congested roads, considering all the loopholes we have decided to keep provision of Rs 250 crores for the first year for the betterment of the coastal belt. This will definitely take care of movement; infrastructure and this will lead to coming of more tourists to Goa." The increase in tourism arrivals heralds with it the imminent need for increased resource usage. This is evident from the requirement of increased beds per tourist in terms of hotels in all categories. At the current level of Tourist arrivals in Goa in 2004 of 24, 48,959 the total bed requirement is 39,183 beds. If we fit a trend to the tourist arrivals then the tourist arrivals for the year 2016 are projected at 42,80,000, which needs a phenomenal increase in bed requirement of 69,400, which is almost twice the number for 2004.

19 This is only one area of resource development need and one can imagine what kind of resources are needed in terms of basic resources such as water, electricity, garbage disposal, land, roads etc. Furthermore one needs to look at the kind of resources on the primary demand side of tourism such as increased demand on attractions, natural as well as man-made. Viewed from this point one is compelled to take a hard look at the honey-pot areas such as Calangute, Baga, Candolim, Palolem etc., and then incorporate the tourism attraction demand from tourists in future. This would certainly lead to the development of hinterland areas of Goa and most of this would be in the realms of Heritage and Culture. This is where the destination managers and stakeholders need to come together to create strong policies that are conducive to better tourism experience creation. Till recently tourism has been viewed as an economic activity that creates and distributes wealth at the destination. One needs to look deeply into this phenomenon and realize what impacts this has on the phenomenon of tourism itself. Most people call the traditional approach as the demand side approach in the sense that tourism is looked at from the benefits of demand for tourism. However the supply-side aspect is not taken with equal vigor. There are many organizations and stakeholders who are eager to market their product to the tourists but not many of them would get together and spend time, efforts and money in designing the tourism products that are offered to the tourists. (Britton, S.G.,1982) The future of Tourism in Goa will certainly depend on how this is created. Economic benefit dispersion and resource generation, maintenance and dynamic evaluation alone will help Goa retain its pristine nature and benefit both the hosts as well as the guests. Tourism dependent economies generally create products and services keeping in mind the tourists. However it would be prudent to view the local economy and population as the main demand sector and tourism as an add-on economy. The reason for this is the involvement of all sections of the local economy. Tourism products created and distributed to the tourists have a built in risk factor of competition, market backlash by way of tourism activities not occurring in the region due to exogenous factors. If the tourism products are a

20 part of the local economy then there is lesser fluctuation as far as the demand is concerned and hence price stability is relatively ensured. This in itself is a great relief for investors who seek a stable business environment to enable them to take better investment decisions. This in turn would lead to a sense of stability for investors thus boosting their confidence in terms of bringing in new investments to boost the supply side of a destination. (Dr. Dayanand M.S., Associate Prof. Department of Management Studies, Goa University) 4.20 MINING Iron ore mining has been Goa s biggest economic contributor after tourism in recent years. The state was India s largest exporter of iron ore, with huge demand from China as the emerging superpower ramped up steel usage and production. (Tata Energy Research Institute) The Goa Government for nearly one-and-a-half years back had suspended all mining activities by displacing of about lakhs of workers in the state ; the reason being serious illegalities and irregularities in mining operations which had resulted in losses of 350 billion rupees (Dh21.13bn) to the state and whole matters went into the court of law. Against this allegations the Supreme Court in the first week of May, 2014 allowed an annual cap of 20 million tonnes of iron ore to be extracted in Goa which was banned by it in the state. This has created new possibilities of development of Goa Mining industry. The Goa Govt. asked by the Supreme Court to formulate a scheme within six months for utilizing the mining resources through e-auction in Goa. Two years back Contribution from mining & quarrying -mainly from iron ore mining was an important economic activity at the time of liberation contributing about 17% of the state income. Share of value addition from this sector in the state income was around 4%. This sector has registered an annual growth of 4.7% in in terms of GSDP at constant prices. The value added from this sector is less than 4% today. (2013).The mining industry got a set back in Goa due to ban by the court of law as a result of malpractices leading to disturb the natural environment of Goa. As per recent decision by the Court of law, the ban on

21 mining activities is abandoned and has now open up the following potential for the mining development Mining Belt covers 700 Sq. Km. The annual production of iron ore would be around 100 million tonnes. Forex Earning would be Cr/An. Goa contributes would be 40% of total Iron Ore exported from India. Mining would employs one lakh persons directly and two lakhs indirectly. (Statistics Department, Govt of Goa,2014) 4.21 INDUSTRIES IN SOUTH AND NORTH GOA Goa is one of the tiny states of the Indian Union. Goa got liberated from the Portuguese regime in 1961 and attained statehood in Goa was included as twenty-fifth state of India. Goa state has two districts namely North Goa area admeasuring District Sq.Kms and South Goa District area admeasuring Sq.Kms. Margao, also known as Commercial Capital of Goa, houses the Headquarters of South Goa District. South Goa is divided into 6 talukas for administrative convenience, viz., Salcete, Quepem, Canacona, Sanguem & Marmagoa (Vasco-da-Gama)- geographically, Sanguem being the largest taluka & Marmagoa being the smallest one. Very recently, one more taluka known as Dharbandora is carved out, dividing the Sanguem Taluka. Panaji is the district headquarters of North Goa district. The district comprises of 6 talukas namely, Tiswadi, Bardez, Pernem, Bicholim, Satari and Ponda. There are 213 villages and 27 towns, out of which, 7 are Municipal towns.

22 INDUSTRIAL PROFILE OF SOUTH GOA Industry at a Glance List of Major Public sector units in the South Goa District Vendorization / Ancillarization of the Industry in South Goa Major Exportable Item from South Goa Medium Scale Enterprises In South Goa (MSME-Development Institute (2012) Diag. 4.3: Map of South Goa District

23 Industry at a Glance Table No. 4.2: Details of Industries of South Goa Sr No Head Unit Particulars 1. Registered Industrial Unit No Total Industrial Unit No. 51,492* 3. Registered Medium & Large Unit No Estimated Avg. No. Of Daily Worker Employed In Small Scale Industries No Employment In Large And Medium Industries No. 16, No. Of Industrial Area No Turnover Of Small Scale Ind. Lacs ** 8. Turnover Of Medium & Large Scale Industries Lacs NA Source: MSME-Development Institute (2012) Brief Industrial Profile of South Goa District, Ministry of MSME, Govt. of India. * For the State of Goa as per IV Census of MSMEs ** at current prices List of Major Public sector units in the South Goa District 1) Goa Ship Yard Ltd. Vasco-da-Gama 2) Marmagoa Port Trust, Vasco-da-Gama 3) Chowgule Industries, Ltd. 4) Zuari Industries Ltd. Zuarinagar, Goa 5) Goa Carbon Ltd. St. Jose de Areal, Goa 6) IFB Industries Ltd, Verna-Goa 7) Mormugoa Steels Ltd, Curtorim, Goa 8) Siemans Ltd, Verna Indl. Estate 9) Kodak India Ltd, Verna Indl. Estate 10) Indoco Remedies Ltd, Verna Indl. Estate 11) Pentair Water India, Verna Indl. Estate

24 ) Duraline India, Verna Indl. Estate 13) Aventis Pharma, Verna Indl. Estate 14) Prince Multi Plast, Verna Indl. Estate 15) Wyeth Ltd, Verna Indl. Estate 16) Abbot Industries Ltd., Verna Indl. Estate 17) Colcona Asia Pvt. Ltd., Verna Indl. Estate 18) Watson Pharma Pvt. Ltd., Verna Indl. Estate 19) Lupin Ltd., Verna Indl. Estate 20) Microlabs Ltd., Verna Indl. Estate 21) Cipla Ltd., Verna Indl. Estate 22) Ratio Pharma India Pvt. Ltd., Verna Indl. Estate Vendorization / Ancillarization of the Industry in South Goa 1) IFB Industries, Verna Indl. Estate: Rubberized & plastic components, Electroplating, powder coating, corrugated boxes, pressed & turned components, shearing jobs, wiring harness, packaging material, indicator lamp assembly, cast machine parts, & consumables stores. 2) Mormugoa Port Trust: Vasco da-gama Conveyor parts, machined components, engineering and electronic items numbering about more than ) Electronic capacitors, steel fabrications, Galvanizing, flexible packaging material, glass ampoules, plastic bottles, consumables stores. 4) Zuari Industries Ltd. Zuarinagar Polypropylene bags, HDPE laminations, Fabricated & machined items. 5) Goa Ship Yard Ltd: Air Conditioning & Refrigeration,System (On Turn Key Basis), 6) Modular Accommodation (On Turn Key Basis) Modular Galley (On

25 Turn Key Basis), Anchor Windlass, Accommodation Ladder, Diving Equipment, Gemini Boat, Hydraulic Sliding Door, 7) Pharmaceutical Industries: Flexible packaging, corrugated packing boxes, basic chemicals, consumables, HVAC System, maintenance Service Providers in plant maintenance, energy conservation, housekeeping, laundry services 8) Food Processing Industries: Packaging items, preservatives, basic food materials 9) Hotels & Restaurants: Annual maintenance services, supply of fruits & vegetables, consumer chemicals, tours & travel guides & operators, housekeeping & laundry services Major Exportable Item from South Goa 1) Iron ore 2) Pharmaceutical Formulations 3) Electronics and Communication Devices 4) Medical Equipments 5) Container cargo 6) Swimming Pool equipments Medium Scale Enterprises In South Goa 1) Govind Poy oxygen Ltd, Arlem, Salcete, Goa 2) Kartik Alloys Ltd, Cuncolim Indl. Estate 3) Smart Link Network Pvt. Ltd., Verna Indl. Estate 4) Betts India India Pvt. Ltd, Verna Indl Estate 5) Nicomatic Industries, Cuncolim Indl. Estate 6) Marpol Pvt Ltd., Kakoda Indl. Estate 7) John Distilaries, Cuncolim Indl. Estate 8) Dempo Industries, Verna Indl. Estate

26 ) FDC Ltd., Verna Indl. Estate 4.23 INDUSTRIAL PROFILE OF NORTH GOA Industry At Glance List Of Major Public Sector Units In the North Goa District Vendorization / Ancillarization Of the Industry North Goa : Exportable Items from North Goa Medium Scale Enterprises in North Goa (MSME-Development Institute (2012) Diag. 4.4: Map of North Goa District

27 Industry At Glance Table No. 4.3: Details of Industries of North Goa Sr No Head Unit Particulars 1. Registered Industrial Unit No Total Industrial Unit No. 51,492* 3. Registered Medium & Large Unit No Estimated Avg. No. Of Daily Worker No. 7 Employed In Small Scale Industries 5. Employment In Large And Medium Industries No. 16, No. Of Industrial Area No Turnover Of Small Scale Ind. In Lacs ** 8. Turnover Of Medium & Large Scale In Lacs Na Industries Source: MSME-Development Institute (2012) Brief Industrial Profile of North Goa District, Ministry of MSME, Govt. of India List Of Major Public Sector Units In The North Goa District 1) Unichem Labs Ltd., Pilerne Ind. Estate 2) Proctar & Gamble Hygiene & Health Care Ltd., Kundaim Ind. Estate 3) A.W. Faber Castel Stationery Pvt. Ltd., Corlim, Ilhas 4) Marico Ind. Ltd., Khandepar, Ponda 5) Finolex Cable Ltd., Tisk, Usgao 6) Ranbaxy Laborities Ltd., Madkai Ind. Estate 7) United Breweries Ltd., Bethoda, Ponda, Goa 8) Glenmark Pharmaceuticals Ltd., Kundaim Ind. Estate, Goa 9) Syngenta India Ltd., Corlim, Tiswadi 10) Madras Rubber Factory (MRF), Usgao, Ponda 11) Sanjivani Sahkari Sakhar Kharkana, Tisk, Usgao 12) Automobile Corporation of Goa Ltd., Honda, Sattari 13) GKB Opthalmics, Tivim Ind. Estate 14) Goa Antibiotics and Pharmaceuticals Ltd., Tuem, Pernem 15) Crompton Greaves Ltd., Bethoda Ind. Estate 16) Funskool India Ltd., Corlim, Tiswadi 17) Sesa Goa Pvt. Ltd., Amona, Bicholim

28 ) Hytech Lenses Pvt. Ltd., Tivim Ind. Estate 19) Nestle India Ltd., Tisk, Usgao Vendorization / Ancillarization Of The Industry North Goa 1) M.R.F. Ltd., Usgao, Ponda: Engineering Components and machinery, Millimen Gloves, Rubber items, fabrication, powder coating, pressed components, De-sealing job, electroplating and consumables. 2) Automobile Corporation of Goa Ltd., Honda, Satari: Pressed/deep drawn component, powder coating, welding, shearing, roll forming and bending, advertising, sub part assembling, rubber moulded goods. 3) Crompton Greaves Ltd., Bethoda, Goa -Capacitor, terminal adapter, fan shaft, regulators sub/assembly, LDPE bags, suspensions tubes, plastic canopy, stampings, superenambled copper wires, machining jobs, stateor winding, fan blades, voltage chokes and electrical stampings, electroplating, zinc plating, coil winding. 4) Cadela Health Care, Kundaim Ind. Estate, Ponda: Corrugated paper/board boxes, flexible packaging material, glass ampoules, plastic bottles, phenyl, aluminum fabrication, chemicals, castings and machinery, electrical repair, electrical panel boards. 5) Syngenta India Ltd., Corlim, Ilhas, Goa: Packing cases, paper board cartons, plastic bottles, weighing machines, printing, advertising, general engineering works, chemicals, consumables, printing. 6) Pharmaceutical Industries: Flexible packaging, corrugated packing boxes, basic chemicals, consumables, HVAC System, maintenance Service Providers in plant maintenance, energy conservation, housekeeping, laundry services. 7) Food Processing Industries: Packaging items, preservatives, basic food materials.

29 ) Hotels & Restaurants: Annual maintenance services, supply of fruits & vegetables, consumer chemicals, tours & travel guides & operators, housekeeping & laundry services Major Exportable Items From North Goa 1) Iron ore 2) Pharmaceutical Formulations 3) Electronics and Communication Devices 4) Confectionaries 5) Passenger buses 6) Health & Hygienic Products Medium Scale Enterprises In North Goa 1) Menezes Fish Net Industries, Merces, Tiswadi 2) Zenith Magnetic Pvt. Ltd., Porvorim, Bardez 3) De Nora India Ltd., Kundaim Ind. Estate 4) Ravish Infusion Pvt. Ltd., Kundaim Ind. Estate 5) Rayalseema Concrete Sleepers Pvt. Ltd., Navelim, Bicholim 6) Goa Glass Pvt. Ltd., Colvale, Bardez, 7) Alcon Cement Ltd., Kundaim 8) Guala Closures India Pvt. Ltd, Bicholim, Goa 9) Berger Paints Ltd., Ponda, Goa 10) Nebula Home Products Ltd., Pilerne, Bardez, Goa 11) Oriental Containers Ltd., Kundaim, Goa 12) Teracom Ltd., Kundaim, Goa 13) B. T. Components Ltd., Madkai, Ponda, Goa 14) Excel Caps and Closures, Mapusa, Bardez, Goa 15) Seagram India Pvt. Ltd., Bicholim, Goa 16) High Mark (India) Pvt. Ltd., Pilerne, Bardez, Goa 17) Goa Formulations Ltd., Honda Ind. Estate, Goa 18) Centaur Pharmaceuticals, Karaswada, Mapusa

30 INDUSTRIAL POTENTIALS FOR GOA: The industrial potential of Goa has been on rise due to: Potentials Areas for MSMEs in Service Industry Potential for New MSMEs in Industry other than service industry Potentials Areas for MSMEs in Service Industry 1) Power Laundry 2) Vehicle Service Station 3) Wheel Balancing/Car Washing 4) Desk Top Publishing 5) IT Enabled Services 6) Maintenance Contract Of Computers And Peripherals 7) Mobile Phone Repairing 8) TV/Audio/Video Equipments Repair & Servicing 9) Beauty Parlour 10) Tailoring Shop 11) Event Management Services 12) Cyber Café And Data Processing 13) Ice Cream Parlour/Cold Drink Shop 14) Hotels & Restaurants 15) Fast Food Kiosks 16) Tourist Information And Support Services 17) Air Ticketing 18) Power Laundry 19) AC Servicing & Repair Workshop 20) Advertising Agency 21) Computer Training Centre 22) Training Centres In Hospitality, Catering And Tourism 23) Eco-Tourism And Adventure Tourism 24) Digital Photography Studio

31 ) Interior Design Services 26) Fitness Centres/Gyms 27) Hair Dressing 28) Hiring Of Water Sports Equipments 29) Customized Software Development 30) Call Centre Training And Call Centre Services 31) Paying Guest Services 32) Packet Meals Services 33) Fashion Designing 34) Gift Articles Shop 35) Aquarium 36) Optical Show Room 37) Crèches/Play Homes 38) Tuition/Coaching Classes 39) STD/ISD Booth/Photocopying/Secretarial Services 40) Stationery Articles Shop Potential for New MSMEs in Industry other than service industry 1) Manufacture Of Bread & Bakery Products, Bakery Mixture 2) Dairy & Dairy Products 3) Jack Fruit Chips 4) Banana Wafers/Pappads 5) Cashew Based Products Like Kaju Laddu/Chikki 6) Fruit & Vegetable Preservation/Processing Like Pickles, Jam, Jelly, Chutney, Squashes, Sauces 7) Cashew Nut Processing 8) Spices 9) Vinegar 10) Ice Cream/Kulfi 11) Packaged Drinking Water In Bottles And Pouches 12) Cold Drink And Aerated Water Manufacturing Unit

32 ) Fishing nets 14) Motorized fishing boats 15) Ancillary units in General Engineering and fabrication 16) Paper Bags and Paper Products like disposable cups/plates 17) Leaf cups/plates 18) Readymade Garments including uniform for schools, Hotels & Restaurants and Industry 19) Coconut Oil extraction 20) Desiccated Coconut Powder 21) Consumer Chemical Products like Phenyl, liquid soap, floor cleaner, Air fresheners, naphthalene Balls, agarbathi etc.. 22) Decorative Candles 23) Flexible Packaging Products 24) Handicrafts including terracotta, sea-shell products. 25) Cotton & Jute Bags 26) Tiles / floorings 27) Artificial/imitation jewellery 28) Herbal Products 29) Modular Kitchen 30) Emergency Lamps 31) Voltage Stabliser, UPS 32) Printing & Screen printing, Textile Printing 33) Mushroom Cultivation Processing-Integrated unit. 34) Nylon School Bags 35) Injection/blow moulded plastic products. 36) Solar water heater 37) Electronic Intruder Alarm 38) Information Display System/Display Boards 39) Handmade Paper 40) Drinking Straw 41) Paper napkins/facial tissues, napkins, toilet rolls etc.

33 ) Cashew Nut Shell Powder 43) Coconut Shell Powder 44) Plastic Egg trays 45) FRP Doors/partitions 46) Power Generators 47) Extruded Food items 48) Bio-fertiliser 49) Fire Extinguisher 50) Disposable Syringes 51) Dehydration & Canning of Fruits 52) EPABX 53) Assembly of Deep Freezers, Cooling Equipments 54) Electric Fan Components like regulator Assembly, fan kit assembly etc. 55) Mosquito Repellent Mats/liquid 56) Bricks out of mining waste 57) Fireclay Brick 58) Steel Furniture 59) Labels & Stickers 60) Soft toys 61) Power laundry 62) Vehicle Service Station 63) Wheel balancing/car Washing 64) Desk Top Publishing 65) IT Enabled Services 66) Maintenance contract of Computers and peripherals 67) Mobile Phone Repairing 68) TV/Audio/Video Equipments Repair & Servicing 69) Beauty parlour 70) Tailoring shop 71) Event Management Services

34 ) Cyber Café and Data Processing 73) Ice Cream Parlour/Cold Drink Shop 74) Hotels & Restaurants 75) Fast Food Kiosks 76) Tourist information and support services 77) Air ticketing 78) Power Laundry 79) AC Servicing & Repair Workshop 80) Advertising Agency 81) Computer Training Centre 82) Training Centres in Hospitality, Catering and Tourism 83) Eco-tourism and Adventure Tourism 84) Digital Photography Studio 85) Interior Design Services 86) Fitness Centres/Gyms 87) Hair Dressing 88) Hiring of water sports equipments 89) Customized Software Development 90) Call Centre Training and Call Centre Services 91) Paying Guest Services 92) Packet Meals Services 93) Fashion Designing 94) Gift Articles shop 95) Aquarium 96) Optical Show Room 97) Crèches/Play Homes 98) Tuition/Coaching Classes 99) STD/ISD Booth/Photocopying/Secretarial Services 100) Stationery Articles Shop