Source: Outlook
Goa is now eyeing a share of India’s growing logistics and warehousing demand. At the Goa Investor Summit 2024 organised in Panaji on January 29, state Chief Minister Pramod Sawant and Industry Minister Mauvin Godinho presented a pitch for more investments into industrial activities in the state.
While addressing the summit which saw participation from local businesses and domestic and international investors, Sawant said that the state is set to benefit from the strong growth visible in the Indian economy. He added, “Goa has benefitted considerably due to the support of central and state governments, and we will remain a success story in the country and a preferred destination for global investors across all the sectors.”
The summit saw the launch of a new portal of the state government which will allow businesses to get instant compliance approval. Moreover, it also saw the launch of Goa Investment Development Corporation Regulations 2023 Manual and the Goa Investment Promotion Board website. Explaining the simplification of several processes, Pravimal Abhishek, Managing Director of Goa-IDC, said at the summit that the government has undertaken several measures to streamline the process to apply for industrial land. As per the government, the new regulations will allow for easy transfer of lease agreements, simplification of sub leasing process and a transparent e-auction process for buying industrial land in the coastal state.
In this context, the Goa government seems to have set its eye on developing a logistics and warehousing hub in the state, identifying it as the next big opportunity. While the state had launched a dedicated policy for the sector last year, the first big investment announcement came at the summit when TVS Industrial and Logistics Parks signed a memorandum of understanding with the Goa government to set up operations in Goa’s upcoming logistics park.
While tourism has a significant contribution to its economy, the state has been a hub of pharmaceutical manufacturing for the country. As per the available data, its contributions to India’s pharma exports stood at 10 per cent. Over 90 per cent of pharma manufacturing in the state is export oriented. Looking at the state’s economic data, over 50 per cent of the contribution in its NSDP comes from the industrial sector.
While the state will retain focus on pharma, Godinho indicates that the government is eyeing sectors such as logistics and warehousing, food processing and medical device manufacturing to replicate performance of historical performance of the pharma sector in the state. “What we are trying to develop is a food park near Mopa airport which can have players working on any part of the supply chain. Along with this, if we can do well in pharma then medical device manufacturing is also something we should try to bring to the state.”
Along with this ecosystem, Godinho says that the government is hoping to bring significant investments into logistics and warehousing segments. While refusing to quantify the amount of targeted investment, he says, “Our government is in conversation with at least three big players in the sector apart from TVS Industrials. We are trying to get the best deal for us. In the next 10 years, I believe Goa will be the biggest logistics hub in this part of country, serving both national and international demand.”
Addresses of different industry leaders and government officials suggested that creation of jobs remains the biggest priority. Goa ranks amongst the highest in unemployment rate in the country, with the last periodic labour force survey showing that the unemployment rate for all ages in the state stood at 9.7 per cent. For context, the national average was 3.2 per cent.
The state hopes that with a new focus on growing logistics sector and the simplification of several industry regulations will help Goa see significant momentum in its economy and more specifically, industrial activity.
