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Decoding Goa economy: What is ailing the costal state amidst developing political crisis?

Unlike other Indian states, the economy and political administration of Goa has a peculiar nature. Carmen Sharmila Pais in the thesis submitted to Goa University in 2017 explains that it was Portugues who introduced election in Goa in the year 1821 and it continued till there exist in 1961. The thesis further explains that the colonial Goa had voted in the Parliament of Portugal and a section of Goa population were allowed in public administration; municipal, parochial, legislative or the government councils, the colonial council and the presidential elections of Portuguese dominion during the republican period. The 19th century witnessed the emergence of Goan elite questioned the Luso-descendant community of Portuguese Goa. The post-independent Goa continues to experience the political instability and subject to the elite interests.

Table 1: Governments, Chief Ministers and their tenure

Sl.No. Name of Chief Ministers From To Party Years in office
1 Dayanand Bandodkar 20 December 1963 2 December 1966 MGP 3 years
President's rule 2 December 1966 5 April 1967  1 year
2 Dayanand Bandodkar 5 April 1967 12 August 1973 MGP 6 years
3 Shashikala Kakodkar 12 August 73 27 April 1979 MGP 6Year
President's rule 27 April 1979 16 January 1980  1 year
4 Pratapsingh Rane 16 January 1980 27 March 1990 (INC)(U) 1 year
5 Churchill Alemao 27 March 1990 14 April 1990 Progressive Democratic Front 19 days
6 Dr. Luis Proto Barbosa 14 April 1990 14 December 1990 Progressive Democratic Front 240 days
President's rule 14 December 1990 25 January 1991 1 year
7 Ravi S. Naik 25 January 1991 18 May 1993 INC 2 year
8 Dr Wilfred de Souza 18 May 1993 2 April 1994 INC 1 year
9 Ravi S. Naik 2 April 1994 8 April 1994 INC 6 days
10 Dr Wilfred de Souza 8 April 1994 16 December 1994 INC 238 days
11 Pratapsing Rane 16 December 1994 30 July 1998 INC 4 years
12 Dr Wilfred de Souza 30 July 1998 26 November 1998 Goa Rajiv Congress 150 Days
13 Luizinho Faleiro 26 November 1998 9 February 1999 INC 1 year
President's rule 9 February 1999 9 June 1999 120 days
14 Luizinho Faleiro 9 Jun 1999 24 November 1999 INC less than 6 months
15 Francisco Sardinha 24 November 1999 24 October 2000 Goa People's Congress 1
16 Manohar Parrikar 24 October 2000 2 February 2005 BJP 5 years
17 Pratapsing Rane 2 February 2005 4 March 2005 INC one month
President's rule 4 March 2005 7 Jun 2005 three months
18 Pratapsing Rane 7 June 2005 8 June 2007 INC 2 years
19 Digambar Kamat 8 June 2007 9 March 2012 INC 5 Years
20 Manohar Parrikar 9 March 2012 8 Novermber 2014 BJP 8 months
21 Laxmikant Parsekar 8 November 2014 14 March 2017 BJP less than 5 months
22 Manohar Parrikar 14 March 2017 Present BJP

Source: Goa Assembly

It is evident from the table that no government has completed its full term from 1993 to 2000. It was Manohar Parrikar from 2000 to 2005 who completed five years after Independence, after the Congress ruled the state from 2007 to 2012.  However, the economy of Goa is resilient enough to accommodate the political changes. It is possible because of tourism and mining that dominates the economy. These two sectors are primarily run by private capital which needs government support to operate.

About 10.2 percent of the population is engaged in tourism, and as per the Tourism Ministry of India, every Rs 1,00,00,00 invested in tourism generates 78 jobs. However, much of this investment is from the private sector. So every tourism-dependent economy has to have a flexible regulatory measure to attract more tourism even at the cost of the environment. The Goa government keeps a flexible tourism policy. Mining is the second biggest industry in the state.

Table 1. The sectoral growth rate of GSDP at constant (2011-12) prices
Agriculture, forestry and fishing 13.57 0.11 0.75 5.83
Mining and quarrying -98.45 -5.35 1130.6 343.27
Primary sector -48.83 0.03 15.88 53.65
Manufacturing -26.86 68.99 11.84 17.99
Secondary sector -20.1 56.65 13.77 18.36
Source: Goa, Economic Survey, 2017

Interestingly, the mining sector is growing at a higher rate compared to other sectors. The royalty collected by the Goa government from major minerals till 2017 was Rs 122.09 crore and minor minerals Rs 6.36 crore.

Here is the M B Shah Commission's report on illegal mining operations and huge extraction of resources.

See graph 1 which gives a brief outline of how the mining sector operates in the state and the number of people working in this sector.

mining new

Table 2. Performance under Annual Credit Plan as on ( Rs in Crore)
Sector Target for the quarter 30.09.2017 Achievement upto 30.09.2017 % Achievement
Agri Crop Loan 219.9 126.72 57.63
Agri Term loans 236.62 111.8 47.24
Sub Total Agri 456.52 238.52 52.25
Agricultural Infra 26.94 10.5 38.97
Allied Activities 21.42 122.09 569.98
Agri Total 504.88 371.11 73.5
MSME 1842.76 1247.48 67.69
Export Credit 274.88 8.18 2.97
Education 201.88 38.42 19.03
Housing 648.8 422.9 65.18
Renewable Energy 3.8 0.14 3.68
Others 35.46 42.38 119.51
Social Infra 46.6 4.28 9.18
Total 3559.06 2134.89 59.98
Source: Goa, Economic Survey, 2017

The other economic sectors of the state is not performing on par with tourism and mining. An assessment of the performance of annual credit plan of the state gives glimpses the state government. (See Table 2)

Renewable energy, export credit and social infrastructure are least performing among all sectors. Among them social infrastructure deserve special attention since the dependency on private health is high in Goa, this has to contextually analyzed with the decreasing quality of environmental health in Goa.

The general unemployment rate of Goa shown an overall decreasing trend ( See graph 2). However as per the report on Fifth Annual Employment - Unemployment Survey 2015-15, the rural unemployment rate of Goa rose to 11.3 percent in 2013-14 to 15 percent in 2015-16.

Graph 2. General Unemployment rate of Goa

CMIE new

The emerging political crisis of Goa has to be assessed with reference to the economic status of the state. In Goa, the economic policy does not need any major revision. The economy of Goa is not growing at a higher rate, the year-on-year growth rate prove this.

See graph 3

Graph 3. Year-on-Year growth ratio of State GDP

Goa Economy new

Any sudden economic policy shift is not possible in this context. Also, the Opposition parties do not have any alternative agenda such as to regulate illegal mining, public investment on health care, increasing employment rate and responsible tourism, etc.

(The writer is Assistant Professor, Jamsetji Tata School of Disaster Studies, Tata Institute of Social Sciences)


Updated Date: Sep 21, 2018 19:02 PM

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