INDIAN STATE : GOA

Investment Incentives

Investment Incentives as under the New Industrial Policy (2003)

The following incentives/subsidies have been proposed:

• Employment Subsidy: This subsidy is an innovative concept of supporting sustainable employment of local youth. The concept lays great stress on generation of employment and not on capital deployed. It also takes into consideration the fact that employment retained is employment created.
  
• Capital Contribution Scheme: This scheme is designed to support local entrepreneurs, promote industrial units to manufacture goods and units in tourism sector, except hotels and resorts
  
• Share Capital to Self Employed/ local entrepreneurs
  
• Interest Subsidy Scheme
  
• Certification/ Patenting Incentive
  
• Scheme to Encourage consumption of local raw materials
  
• Preferential Purchase Incentives for SSIs

Investment Incentives as according to IT Policy (2005)

Goa is ideally suited for setting up IT and ITES industry. The state enjoys the advantage of high literacy rate (83%) and has a large pool of technical and English speaking population. All incentives made available to all the prospective industries intending to invest in Goa, shall also be applicable to the IT and ITES units registered with ITG.

The following additional incentives will be provided to the IT industry:

• Units employing local youth would get employment incentive at the rate of US$ 324.405 per annum per employee, with a maximum of Rs 75 lakh (US$ 0.162214 million) per unit per annum for the first two years.
  
• There will be stamp duty reimbursement on land or building purchased in notified IT park or industrial estates operated by the State-owned Goa Industrial Development Corporation.
  
• The Government also plans for "special treatment" for investment proposal in IT/ITES industry exceeding US$ 10.8161 million or promising to generate more than 1,000 jobs in case of IT and 1,500 jobs in case of ITES.
  
• The State's IT policy 2005 released recently also promises a 25-per cent subsidy on power consumption for two years, 25 per cent capital subsidy on in-house backup power plant, with a maximum of US$ 21680.75 and 25 per cent subsidy on water consumption for five years.
  
• Besides, the industry would be exempted from application of certain Acts such as the Factories Act 1948 and The Minimum Wages Act 1948.
  
• In terms of e-education, the project would include setting up of computer centres in each middle school and college and university curriculum in technical courses would be modified to focus on IT.

Policy Framework

Industrial Policy

The industrial policy document draws on the strengths of the State and seeks to provide for the first time a clear and unambiguous direction for industrial growth. It is a document for the promotion of sustained, environment-friendly industrial growth.

Mission of the policy

The Mission of the Industrial Policy is to ensure accelerated Industrial Development, catalyze Economic Growth, ensure balanced Regional Growth, protect Environment and above all create sustainable Employment to local youth of the State.

Objectives of the policy

• Promote industries specifically identified as 'Thrust Areas'.
  
• Promote industries, which would consume locally available raw materials, have consumption pattern within the State and neighbouring areas.
  
• Develop Goa as the 'Export/Import Hub' and Encourage export oriented Industries.
  
• Develop self-employment opportunities for the local youth especially in rural and semi urban areas.
  
• Promote and encourage the agro-based industries to give a boost to the rural economy.
  
• Promote and encourage development of handicraft products to give boost to local artisans.
  
• Create a healthy climate for the growth and promotion of small-scale and cottage industries.
  
• Promote and encourage the process of Technological upgradation/ automation in the existing units as well as new industries so that need of migrant labour is gradually reduced, thereby arresting the influx of migrant labour.
  
• Create cluster development centres in rural areas around which traditional livelihood earning professions can develop and thrive.
  
• Encourage industries which can convert existing and generated industrial waste such as mining rejects, slag etc., into useful products.
  Encourage participation of women entrepreneurs in the industrial development of the State.
  
• Ensure balanced growth to address regional economic and social disparities in the State.
  
• Encourage promotion of all such industries that are environment friendly and do not indulge in wasteful consumption of resources.
  
• Facilitate revival and rehabilitation of sick industrial units by devising suitable schemes.
  
• Promote Research and Development (R&D) to enable the industry to have access to state of art technology.
  
• Encourage the participation of Industry Associations in decision making process and support their initiatives in promoting industrial development.
  
• Encourage artistic talents amongst local youth.

Full text of the policy

Information technology policy 2005

Goa has an ideal advantage to make the state an attractive destination for attracting software and hardware companies and even promote local IT companies. It has good infrastructure for promoting IT.

The IT/ ITES industry is extremely suited to Goa owing to the industry's inherently non-polluting character and the fact that it makes only conservative demands on precious resources such as land, electricity and water. The government is keen to encourage the IT/ITES industry in the state in a big way. The government firmly believes that information technology is the key to enhancing the welfare of the citizens of Goa as IT can create employment opportunities for an increasing proportion of the population in a variety of diverse sub-sectors.

Full text of the policy (.pdf)

Biotechnology Policy

The mission of the biotechnology policy is to ensure accelerated growth in all areas of this sunrise sector such as education, research and economic sectors covering healthcare, agriculture, industry, services, environment management and employment generation so as to bring the state to a position of pre-eminence which it has been occupying in other sectors of social and economic growth. Therefore, the policy document identifies the factors required to ensure such growth and enumerates the steps to be taken by all the stakeholders including the government in its various departments related to biotechnology such as education, agriculture, health, science and technology, environment and Industry; Institutions of higher learning such as the universities and research institutions, the industry, institutions of local self and Government at village level, farmers and the regulatory agencies. It is envisaged that the public-private partnership would play an increasing role in promoting the growth of the sector.

Full text of the policy

Major multinationals operating in Goa

Useful Web Links

Official Website of Government of Goa

Goa industrial Development corporation

Goa Chambers of Commerce and Industry