GCCI BULLETIN MAY 2019

12TH JULY 2019

Dear Members,

India has welcomed the new government with an unambiguous voice cutting across party, caste, and economic lines to vote for a leader who is perceived as being decisive, strong, tough, and a ‘chowkidar’ who protects the nation. Despite the demonetization which ruffled many feathers and which was viewed by many as being anti-poor and anti-small scale industry and daily wagers, PM Modi was seen to have ‘gumption’. These elections showed that the people of India had voted in one voice for development and for welfare schemes which had touched people’s lives somewhere ‘swatch Bharat’ and toilets, gas connections, electricity, bank account accessibility for all, and infrastructure development. The other landmark achievement of the government was the introduction and implementation of reforms such as the Insolvency and Bankruptcy Code, Goods and Services Tax, and the Real Estate (Regulation and Development) Act. These have been welcomed by all though the full benefits for the economy may take some time to accrue.

The Balakot airstrikes brought ‘nationalism’ to a crescendo and brought about unanimity of opinion. The final verdict was clear- people wanted a ‘doer’ and one who did not hesitate to take action. The result indicates a structural shift in India’s politics and should also be read as changing times for India and India’s youth who have aspirations. They can no longer be placated by mere rhetoric. They are looking for leaders who can steer the nation and give flight to their dreams.

A great deal needs to be done by the new government. There is rising unemployment, agrarian distress, etc. Growth in India is fuelled by high-value goods such as automobiles, air conditioners, and other consumer goods. This accounts for a mere 15% of the population. Therefore the government has to focus on increasing growth in sectors such as making affordable housing, food, education, and healthcare which is vital for the entire population and not just the top 15%. Along with an increase in agricultural output, the focus should be on augmenting farmers’ income. Reforms need to be interconnected between different sectors of the economy.

In Goa too we have problems of rising unemployment. Stoppage of mining is the most recent cause. Job creation is a huge challenge for the government. But job creation is not the government’s job. Enabling industry, encouraging entrepreneurship, and rolling out industry-friendly policies are.

An active private sector with supportive government policies has to be the focus. Rather than attacking the government, the industry must discuss with the government and put forth its views on various policies. It is our responsibility as a chamber of commerce to inform the government about the industry perspectives the industry pain points, and are hurdles we face that if eliminated could help the industry to prosper.

We understand that the Goa Government is exploring the option of tapping the iron ore mines not covered by the Supreme Court judgment of 7th February 2018, effectively shutting down mining operations in the state. The Hon’ble Chief Minister has recently said that the solution for resuming work on the 88 mining leases affected by the order will be explored in the Supreme Court and further added that State Government has already started working with experts to find out some legal solutions. He is of the firm view that the industry can be revived by tapping mining leases which are about 134 in numbers that do not fall under the ambit of the SC order of 7th February 2018, and the Government has initiated some action in this regard. GCCI Mining committee members said that though the CM has not spelled out his plans, this has to be implemented cautiously taking all possible legal precautions.

Environmental pollution was one of the triggers which led to the stoppage of the entire mining industry in Goa. Recently the fire at the Sonsoddo waste dump at Margao went on unabated for days. This was a result of unsegregated garbage being burnt at the garbage dumping site. Such a huge fire and the consequent air pollution is a serious environmental hazard. It shows a total apathy by the authorities concerned with the citizens and their lives. That numerous houses have also been allowed to come up around this area is clearly in violation of landfill norms. Sonsoddo dump is at least two decades old. Surely it need not take twenty years to not only not address the issue but to let it go out of hand to the point of being callous to the concerns of your people.

These elections have proved that the Indian electorate is no longer a motley crowd that will be swayed by mere tokenism and slogans. They want action on the ground and leaders who are ‘doers’. People expect government agencies and authorities to take the lead in acting on their mandate and making slogans a reality. Whether ‘swatch Bharat’or elections, ultimately it is the result that counts. As an industry, we are in challenging but exciting times. The youth are on an aspirational curve. As an industry and business, we have opportunities that did not exist before. The leadership at the Centre is gearing up for round 2. We expect the state leadership led by a young and dynamic CM to give Goa’s industry the fillip it deserves.

Sandip Bhandare

ABOUT GGCI

Goa Chamber of Commerce & Industry (GCCI) is Goa’s premier non-profit business, support-services and networking organization. We represent and liaise with SME’s, Corporate Organisations and Government bodies.

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