Industrial Development & Economic Growth in Goa

Goa is located in the western region of India. The state shares its border with the Arabian Sea to the west, Maharashtra to the north and Karnataka to the south and the east. It is one of the fastest growing states in the country. Goa has a coastline of about 104 kms and inland waterways of about 250 km. The coast is full of creeks and estuaries formed by rivers.

At current prices, Goa’s Net State Domestic Product (NSDP) was Rs 702.67 billion (US$ 10.90 billion) in 2018-19. The NSDP (in Rs) increased at a Compound Annual Growth Rate (CAGR) of 9.12 per cent between 2011-12 and 2017-18. The state has one of the highest per capita NSDP in the country, which stood at about Rs 420,383 (US$ 6,523) in 2017-18.

Goa has a strong presence in mining, tourism and pharmaceuticals sectors. Mining (iron ore and manganese), pharmaceuticals, iron and steel industries are present in North Goa while mining and shipbuilding industries are present in South Goa. Exports of iron ore from the state reached 9.93 million tonnes in 2017-18. As of April 2019, Goa had a total installed power generation capacity of 567.23 MW.

Tourism is the largest segment in the services sector. Goa is traditionally known as a tourist paradise for its natural scenery, beautiful beaches and cultural diversity. During 2017, Goa witnessed arrivals of 6,895,234 domestic tourists and 890,459 foreign tourists. Up to December2018*, 8.01 million tourists have visited the state.

Goa has also emerged as a manufacturing base for several leading companies in areas such as fertilisers, tyres and tubes, cement, electrical machinery, fish-net making machines, automatic washing machines, printed circuit boards, pharmaceuticals and pharmaceutical machinery. Cashew processing has also been a traditional industry in the state. Cumulative FDI received by Goa between April 2000 and December 2018 reached US$ 981 million.

The coast is full of creeks and estuaries formed by rivers; 89.27 thousand tonnes of marine fish and 4.12 thousand tonnes of inland fish were harvested in up to October 2018. Exports of marine products from Goa reached US$ 112.69 million in 2017-18 and US$ 81.68 million during Apr 2018-Feb 2019.

The following are some of the major initiatives taken by the government to promote Goa as an investment destination:

• As of May 2019, Goa had seven formally approved and three notified Special Economic Zones (SEZs).
• The state is in the process of developing the logistics sector by forming a special logistics group and constructing several bridges to address the existing deficiency with regard to logistics and warehousing. The multi-modal logistics park in Balli has been made fully operational.
• The state Government has been proactive in encouraging public-private partnerships for promoting tourism by instituting a corpus fund.
• The state Government is also working on a new tourism policy with a vision of overall tourism development and to engage with private players to invest and develop infrastructure in the state.
• A new export policy for the state is also being prepared in order to promote exports for manufactured goods and surplus agriculture produce.
• A new IT policy has also been started to develop infrastructure , employment and investment opportunities  to promote IT sector in Goa

Note: * upto December 2018

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