It is more than a little strange, one would think, to reverse a policy that is drawing investments to your state that others are envious of. But in Goa, it seems, anything goes. Witness the Goan government?s sudden rejection of special economic zones (SEZs) on the plea that the local populace is against such a disruptive presence in their midst. It may or may not be within the state?s rights to reject a centrally formulated policy, but this will certainly deal a setback to its reputation as a state open to all forms of investment. For a state that ranks so high on the country?s charts of per capita income and human development indicators, this suggests economic complacency tinged with snobbery. What makes Goa?s exceptionalism even stranger is that the state is run by a government from the very party that came up with the idea at the Centre, the Congress. Nor is this a case of wreaking havoc to overthrow the industrial linkages forged by a previous government run by its rival party, the BJP. Also, there has not been any attempted land grab. The three SEZ proposals cleared so far had made modest demands on the limited land resources of the coastal state. The smallest of these three zones covers just 20 hectares, for instance, while the largest is 123 hectares, a very small patch of Goa?which, despite being one of India?s tiniest states, sprawls across some 3.7 lakh hectares in all. And unlike in other states where land acquisition has faced resistance from farmers, Goa has seen no protest of any significance. In any case, the state depends on agriculture for under a tenth of its output.
So, what explains the U-turn? Is it a case of whim? Or some intrigue within the Congress? It is true that Goa has managed to attract reasonable investments even without SEZs, and industry accounts for a good 43% of its output. The state received $480 million by way of FDI over the last three years, which places it ahead of Kerala, Orissa, Rajasthan, Madhya Pradesh, Uttarakhand and Uttar Pradesh. Goan exports are on a roll, too. With so much going for the state, it may consider SEZs to be of no major consequence. But an investor-friendly state, like a tourist-friendly state, should always keep its doors open.
