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Industry disappointed with Goa’s dismal performance in ‘Ease of Doing Business’ Index Industry stakeholders speak about Goa’s dismal ranking on the ‘Ease of Doing Business’ scale
I
By sybil rodrigues
ndustry stakeholders stated that Goa’s efforts to bring in change with respect to ‘ease of doing business’ are only on paper. The industry reacted strongly to Goa’s dismal performance in the Centre’s ‘ease of doing business’ rankings, where the State went down five spots to 24 from 19 in 2018. The practice of sending files for clearance to the minister or chairman of state run corporations is touted to be one of the biggest hurdles in Goa’s case. Blaise Costabir, Chairman of the Confederation of Indian Industry (CII), said “At the end, every minister wants files to come to them. The dealing hand who receives the file has a job to do, but he sends every file to the minister which takes a long time.” Costabir has called for training and capacity building for government staff, particularly the Goa Industrial Development Corporation. Goa ranked at 19 in 2018 and has now slipped five places in the fourth edition of the business reform action plan (BRAP) ranking of States, as it failed to bring in much needed industry reforms. Goa State Industries Association (GSIA) President Damodar Kochkar stated that this was an alarming sign for Goa’s industrial scenario and since his taking over as president he has been insisting on the need for ease of doing business in the real sense of the term. The Department for the Promotion of Industry and Internal Trade (DPIIT) identified 187 reforms which States had to implement but instead of seeking compliance documents from various departments, this time
feedback was sought for from local industry stakeholders. Industry stakeholders stated that despite rules being changed or notifications brought in by the State government, not much has changed for the private sector on ground. Costabir highlighted about the overnight transfer of a 2.4 lakh sqm industrial plot from Meta Strips to logistics firm Varama Sir India and stated that when required, government departments can function very efficiently. “The Meta Strips plot was transferred in a day, illegally and when the election code was in place.” With regard to this, he stated that it is possible for the state to do things quickly and efficiently,
“Instead of appointing costly consultants, the government should form a task force involving all the industry associations to prepare a roadmap and ensure that it is followed both in letter and spirit”
manoj caculo
President, Goa Chamber of Commerce
government appears to be ignoring the private sectors concerns. Manoj Caculo, President
Far from attracting new investments to the state, the Government seems to be bent on making the going tough for the existing industries. Infrastructure in most industrial estates is crumbling, red tape has increased, costs – both actual and hidden, are constantly going up, making it difficult for industry to survive. The Covid pandemic has heaped lot of misery and financial stress on all sectors of the economy. Even in these trying times, instead of providing relief and assistance to the industry, it is being burdened with additional costs. Government seems to be totally insensitive to the industry needs, promises are broken and there is only
Indicators pertaining to Ease of Doing Business in India Construction Starting a Permit Business
Registering Property
and Goa should be number one and not 24 in ease of doing business. Goa Chamber of Commerce and Industry, GSIA and other industrial bodies, earlier this year, had clearly said that the
“Every minister wants files to come to them. The dealing hand who receives the file has a job to do, but he sends every file to the minister which takes a long time”
Blaise Costabir Chairman, CII-Goa Council
22 | Business Goa industry Dossier | september 2020
Paying Taxes
Enforcing Contracts
Resolving Insolvency
of GCCI has shared his views on Goa’s poor ‘Ease of Doing Business’ ranking. He stated that the latest ease of doing business rankings have not come as a surprise to industry stakeholders. “The rankings are no longer decided on the basis of mere theoretical enactment of the BRAPs but on the industry feedback on the effective implementation of these BRAPs and whether these have really helped in streamlining regulatory structures and creating an investor-friendly business climate by cutting down the red tape. While Goa might have ticked a few more boxes (166 out of 187) than the previous years, they have sadly failed in making the life of the entrepreneurs easier. That is at the root of the current sluggish performance on ease of doing business,” emphasised Caculo.
Getting Electricity
Getting Credit
Trading Across Borders
lip service. Even genuine demands of industry are not met leaving it with a feeling of being totally neglected. This has actually resulted in no new investments in the state. On the contrary many units have either closed or are on the verge of closure. This is a very worrisome trend. It is high time that the Government introspects and gets its act together. What is needed is granular thinking within the required quarters of the state administration, as well as the industry bodies. Instead of appointing costly consultants, the State should form a task force involving all the industry associations to prepare a roadmap and ensure that it is followed both in letter and spirit. Or else Goa’s dream, if at all to scale up in the EODB ranking, will only remain a pipe dream”
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