Goa economy slipping, needs re-imagination: CII

Goa economy slipping, in urgent need for re-imagination: CII

CII also expressed concern about the dip in Goods and Services Tax collection. Representative image. Credit: iStock.

Goa needs to urgently re-imagine its economic climate, especially because of a rapid decline in investments, which has resulted in only six new MSME units being set up in the coastal state over the last decade, a survey conducted by the Goa chapter of the Confederation of Indian Industries (CII) has revealed.

A white paper on the economic scenario in the state released by the CII on Friday has also expressed concern about the dip in Goods and Services Tax collection and the slipping of the state in the ease of doing business rankings to 24.

“Goa is in urgent need for economic re-imagination. Traditional industries like tourism and mining are at a standstill and new industrial investment is slowing. As per our research records, there were only six new MSME units with an investment of over 5 crores rupees employing more than 25 people, in the last decade registered in Goa,” the white paper said.

“If we were to use GST collections as a barometer for economic recovery from the Covid crisis, September 2020 saw a rise in total GST collections in the country - a first in 7 months. However, Goa’s collection was down 23 per cent. Further, the latest ease of doing business rankings (EoDB) has seen Goa’s rank dip further to 24 among 29 states. For a state with a manageable size and a highly educated population there is much scope for improvement,” it added.

The state was ranked 19 in the ease of doing business ranking before it plummeted down the rankings earlier this year.

According to a survey which accompanied the CII's white paper in the financial year, the expected decline among businesses for the current and forthcoming financial year has been pegged at 72% and 25% respectively.

"32% of respondents are going to face a revenue decline up to 20%, while 25% are going to face a decline of more than 50% in their revenue for FY21. 5% of respondents fear going out of business in FY2," according to the survey's findings, which also states that 67% of the respondents from the IT and hospitality sectors fear more layoffs in the coming year if the economy slips further.

The survey has also tapped into an overwhelming demand by entrepreneurs for a single-window system of government clearances.

“97% of respondents seek implementation of a single-window online platform. 90% of respondents are confident that responsiveness of government offices should improve along with service delivery act, while 87% want the availability of better credit to reduce revival time,” the survey said.