EDITORIAL
The govt must ensure investment proposals translate into economic activity and jobs
Goa, which is always on the lookout for private sector investment, received a boost in investment proposals recently, with deals worth Rs 8,600 crore emerging from the Vibrant Goa Global Business Summit, which concluded a few days ago.
Chief Minister Pramod Sawant said the investment proposals comprised memorandums of understanding (MoUs) signed over the three days of the summit between the Goa Investment Promotion Board and individual businessmen. Sawant said the proposals could generate 5,000 jobs across sectors such as AI, data centres, energy, logistics, hospitality and healthcare, among others.
It is important that the government diligently follows up on these proposals to ensure that they translate into operational projects. The government must also keep citizens informed about their progress within a reasonable period. Several such high-profile business events have been held in the past, with the government announcing the conclusion of major investment deals, only to remain silent about them in subsequent years. Deals that promise to boost capital formation in the state’s economy but remain only on paper indicate a lack of responsiveness in governance and may even lead people to question whether they exist. Moreover, MoUs that fail to translate into projects undermine the state’s position as a preferred investment destination.
The Vibrant Goa summit organisers made a concerted effort to bring delegations from different states to the biennial business event, and their efforts deserve recognition. The delegates were mostly business owners, members of industry associations and some government officials who visited Goa to forge business ties. It will benefit the state if even 10 per cent of the 500 overseas delegates establish sustained business relationships with local entrepreneurs. Goa needs quality investment proposals from the manufacturing sector, which accounts for 36 per cent of the state’s net domestic product. Its share has been declining over the years. As a major employment generator, manufacturing supports jobs and its presence is crucial for the state’s youth. The sector can absorb labour on a large scale across different skill levels and improve productivity through better processes and technologies. It also generates employment through large-scale formal operations and extensive supplier networks, creating jobs in production, quality control, maintenance, logistics and business services. Capacity expansion brings structured recruitment and skilling opportunities that can move workers into higher-productivity jobs. Goa remains an attractive place to live, but the hard fact is that Indian industry is not convinced about its suitability as a destination for setting up factories and production facilities.
Goa’s power tariffs are low compared with those in competing states, but limited electricity generation capacity makes the state vulnerable in terms of future power availability. The state has so far established itself as a pharmaceutical manufacturing and export hub and is also home to some large manufacturing units. However, very few new industries are choosing to set up operations in Goa. As per the government, Goa offers ease of doing business, but existing industries say the cost of production in the state is among the highest in India. The absence of locally available raw materials and labour, along with the high cost of redistributing finished goods, are among the drawbacks of operating in Goa, industry members say. The state’s investment facilitation team must remain in touch with the Vibrant Goa delegates who signed MoUs and address their concerns to take the proposed investments forward. Proactive measures by the Goa Investment Promotion Board are necessary to sustain the flow of investment.
