GOA PEARL OF THE ORIENT

PEARL OF THE ORIENT July 2017

Table of Content Executive Summary...3 Advantage State.....4 Goa Vision 2035. 5 Goa An Introduction....6 Annual Budget 2016-17....18 Infrastructure Status...... 20 Business Opportunities... 37 Doing Business in Goa.. 55 State Acts & Policies.. 56

EXECUTIVE SUMMARY India s major iron ore producer The iron ore production in the state has increased from 22.3 million tonnes in 2004-05 to 150 million tonnes in 2014-15. Export of iron ore witnessed tremendous growth in 2014-15 after the exclusion of the ban on the export of iron ore which was effective from October 5, 2012 till November 2013. Exports increased at an annual growth rate of 1.4% in 2014-15 over 2013-14. Mormugao Port, reflected remarkable growth During April-September 2016, the total traffic handled by Mormugao port was recorded to be 13.07(P) million tonnes, thereby registering a growth of 61.1% over the same period in the previous year, which is the highest growth rate among 12 major ports of the country Moreover, the average output per ship berth day was recorded to be 12,042 million tonnes during the same period. Strong economic growth Goa is one of the fastest growing states in the country. Goa s net state domestic product (NSDP) was about US$ 7.24 billion in 2015-16. Tourist paradise During 2016, the footfall of foreign tourists in the state reached 6,80,683. Source: Economic Survey of Goa, 2014-15, Mormugao Port Trust Goa, Ministry of Mines, Ministry of Tourism, Aranca Research 3

ADVANTAGE March 2015 Installed thermal power capacity: 400.02 MW High Economic Growth GSDP compounded annual growth rate was at about 12.59% between 2005-06 and 2015-16. The state has one of the highest per capita GSDP in the country and stands at about US$ 6,372 in 2015-16. Facilitating infrastructure Goa has a well-developed social, physical and industrial infrastructure, and virtual connectivity. It has an international airport that is in line its ambition to be a globally recognised leisure destination. It also has significant port infrastructure. June 2017 Installed thermal power capacity: 521.32 MW Advantage Goa Strong presence in mining, tourism and pharmaceuticals Abundant reserves of iron ore. Established base for the pharmaceuticals industry and an emerging destination for knowledge-based industries such as biotechnology and IT. High inflow of international tourists driving tourism revenue. Rich labour pool Goa s high rate of literacy has attracted knowledgebased industries such as pharmaceuticals, biotechnology and IT. A large proportion of the population can speak English, which helps boost the state s tourism and ITeS industries. Source: Economic Survey of Goa, 2014-15, Press Information Bureau GSDP: Gross State Domestic Product 4

VISION 2035 The foundation of high quality governance should be fairness, accountability and transparency. The state plans to preserve its natural beauty at all costs To ensure vibrant future for the habitats of the state. Goa plans to emerge as the most well-governed state in India. Governance Preserve beauty and serenity To conserve Goa s biodiversity, embrace responsible mining, develop tourism sites. Vision 2035 Goa s per capita GDP is twice that of India and the state aims to exceed that in the next 25 years. Value chains to success Knowledge centric In spite of its higher literacy rate, the state plans to move one step ahead. To depend on natural resources and related logistic industries, tourism and related services, healthcare & pharma industry, etc. The state plans to be a knowledge-centric destination in the upcoming years. Source: Goa Chamber of Commerce and Industry 5

FACT FILE Parameters Capital Arunachal Pradesh Panaji Geographical area (sq km) 3,702 Administrative districts (No) 2 Population density (persons per sq km) 364 Total population (million) 1.46 Male population (million) 0.74 Female population (million) 0.72 Sex ratio (females per 1,000 males) 973 Goa is located in the western region of India. The state shares its border with the Arabian Sea to the west, Maharashtra to the north and Karnataka to the south and the east. Languages spoken are Konkani, Marathi, Portuguese, Hindi and English. Goa s administrative headquarters are located at Panaji (the state capital) and Margao. The state has two districts: North Goa and South Goa. Goa has a tropical climate, with a monsoons lasting from June to September. Due to its long coastline, the weather is hot and humid for the rest of the year. Literacy rate (%) 88.7 Source: Census 2011 6

IN FIGURES (1/2) Parameter Goa All states Source Economy 2015-16 2015-16 GSDP as a percentage of all states GSDP 0.4 100.0 GSDP growth rate (%) 1.48 8.71 Per capita GSDP (US$) 6,372 1,546 Aranca Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics Goa Aranca Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics Goa Aranca Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics Goa Physical Infrastructure 2016-17 2016-17 Installed power capacity (MW) 540.56 326,848.53 Central Electricity Authority, as of March 2017 Wireless subscribers (No) 93,556,657 1,164,400,000 Internet subscribers (No) 31,600,000 1 391,500,000 Telecom Regulatory Authority of India, as of February 2017 Telecom Regulatory Authority of India, as of December 2016 National Highway length (km) 262 10,0087.08 NHAI & Roads and Building Department Major and minor ports (No) 1+5 13+187 India Ports Association Airports (No) 1 125 Airports Authority of India 1 Denotes Maharashtra including Goa 7

IN FIGURES (2/2) Parameter Goa All states Source Social Indicators Literacy rate (%) 88.7 73.0 Census 2011 Birth rate (per 1,000 population) 14.6 21.6 SRS Bulletin Investments FDI equity inflows (US$ billion) 0.924 332.11 Department of Industrial Policy & Promotion, From April 2000 to March 2017 Industrial Infrastructure Completed and Operational PPP projects (No) 5 1,246 Operational SEZs (No) 10 1 186 DEA, Ministry of Finance, Government of India, July 2016 Ministry of Commerce & Industry, Department of Commerce, July 2016 PPP: Public Private Partnership, SEZ: Special Economic Zone 1 Only notified and formally approved SEZ 8

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2.84 3.25 3.66 4.86 5.51 6.14 6.82 7.37 8.12 8.23 9.30 ECONOMIC SNAPSHOT GSDP At current prices, Goa s gross state domestic product (GSDP)* was about US$ 9.30 billion in 2015-16. GSDP Visakhapatnam of Goa at current port traffic prices (million (in US$ tonnes) billion) The GSDP increased at a compound annual growth rate (CAGR) of 12.59% between 2005-06 and 2015-16. Goa s economic growth is driven by the strong performance of industrial sectors such as mining, tourism and pharmaceuticals. 10.00 9.00 8.00 CAGR 12.59% 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Source: Aranca Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics Goa, Government of Goa GSDP* - Goa Budget 2016-17 9

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2.45 2.83 3.19 4.23 4.80 5.32 6.44 6.82 7.06 7.24 8.12 ECONOMIC SNAPSHOT NSDP Goa s net state domestic product (NSDP)# was about US$ 7.24 billion in 2015-16. The NSDP grew at a CAGR of 11.44% between 2005-06 and 2015-16. 9.00 8.00 NSDP Visakhapatnam of Goa at current port traffic prices (million (in US$ tonnes) billion) CAGR 11.44% 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Source: Aranca Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics Goa, Government of Goa NSDP# - calculated using per capita NSDP x Population in million 10

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 1,985.0 2,202.0 2,413.0 3,099.0 3,381.0 4,212.0 4,228.0 5,129.0 5,432.0 5,512.0 6,371.6 ECONOMIC SNAPSHOT PER CAPITA GSDP The state s per capita GSDP^ was US$ 6,372 one of the highest in India, during 2015-16. Goa s per capita GSDP increased at a CAGR of 12.37% between 2005-06 and 2015-16. 7,000.0 6,000.0 GSDP Visakhapatnam per capita of port Goa traffic at current (million prices tonnes) (in US$) CAGR 12.37% 5,000.0 4,000.0 3,000.0 2,000.0 1,000.0 0.0 Source: Aranca Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics Goa, Government of Goa Per Capita GSDP^ - calculated using GSDP million US$/Population in million 11

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 1919.00 2102.00 2699.00 2947.00 3146.00 3683.00 3692.00 4513.00 4728.00 4849.00 ECONOMIC SNAPSHOT PER CAPITA NSDP The state s per capita NSDP & was US$ 4,849, one of the highest in India, in 2015-16. Goa s per capita NSDP increased at a CAGR of 9.52% between 2005-06 and 2015-16. 6000.00 NSDP Visakhapatnam per capita of Goa port at traffic current (million prices tonnes) (in US$) CAGR 9.52% Certain factors, such as substantial foreign exchange earnings from mining and tourism industries, contributed to the high per capita NSDP in the state. 5000.00 4000.00 3000.00 2000.00 1000.00 0.00 Source: Aranca Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics Goa, Government of Goa per capita NSDP & - Geometric mean of YoY calculation from 2004-05 to 2014-15 12

ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP In 2015-16, the tertiary sector µ accounted for 46.64% (US$ 4.54 billion) of GSDP, followed by secondary sector with a share of 39.15% (US$ 3.81 billion) and the primary sector contributing a share of 14.21% (US$ 1.38 billion). At 16.43%, the tertiary sector had the highest growth among all three sectors between 2004-05 and 2015-16. It was followed by the primary sector (16.34%), and the secondary sector (15.61%). Growth in the tertiary sector has largely been driven by the tourism industry, which facilitated growth of other related industries such as banking and financial services, real estate, and business services. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Visakhapatnam GSDP composition port traffic by (million sector tonnes) 45.19% CAGR 46.64% 42.54% 39.15% 12.27% 16.43% 15.61% 16.34% 14.21% 2004-05 2015-16 Primary Sector Secondary Sector Tertiary Sector Source: Aranca Estimates based on Advanced Estimates provided by Directorate of Economics and Statistics Goa, Government of Goa Sector-wise %share of GSDP µ -Geometric mean of YoY calculation from 2004-05 to 2014-15 13

ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Cashew processing has been a traditional industry in the state. Cashew apple is also used in the production of feni, a local liquor, which has become internationally popular. Cashew nut production in the state witnessed an increase of 15% during 2015-16, with the volume produced reaching 30,291 tonnes, by 2015-16. Agriculture in Goa comprises cultivation of crops like paddy, cashew, coconut and seasonal vegetables and pulses, and provides livelihood support to nearly 12% of the state s 1.5 million population. Crop Annual production 2015-16 (in thousand tonnes) Fruits 81.28 Vegetables 82.59 Flowers (loose) 0.12 Spices 0.25 Plantation crops 109.45 Source: Economic Survey of Goa, 2014-15, Indian Horticulture Database 2014-15, National Horticulture Board, State Budget 2016-17 14

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 23.2 42.9 41.3 63.3 70.7 69.8 68.3 70.2 ECONOMIC SNAPSHOT EXPORTS Commodity wise container traffic handled at Mormugao port (tonnage in metric tonnes) Item 2013-14 2014-15 2015-16 2016-17 TEUS Tonnage TEUS Tonnage TEUS Tonnage TEUS Tonnage Frozen fish 2,328 32,804 3,064 42,940 2,308 32,271 3,128 44.735 Zinc oxide 96 1,697 138 2,476 19 320 - - Pig iron 381 10,328 1,228 33,580 641 17,570 472 12,977 Battery plates 17 354 6 126 3 63 3 67 Coke 36 608 77 1,769 13 180 - - Iron casting 418 6,455 510 7,511 472 7,226 533 7,586 Pharmaceutical products 325 2,537 750 6,151 636 5,076 555 4,522 Total export 6,445 101,453 8,682 144,423 8,682 108,286 NA NA Visakhapatnam Fisheries exports traffic from (million Goa tonnes) Iron ore Visakhapatnam exports from Mormugao port traffic Port (million Trust tonnes) ( 000 tonnes) 80.0 60.0 40.0 20.0 0.0 37.2 21.5 27.0 18.3 Value (US$ million, LHS) 37.8 42.7 32.8 42.9 Quantity ('000 tonnes) 60.0 40.0 20.0 0.0 15000 12000 9000 6000 3000 0 14,723 3,570 604 2014-15 2015-16 2016-17 Source: Ministry of Mines, Mormugao Port Trust Goa 15

ECONOMIC SNAPSHOT EXPORT POTENTIAL Commodities exported from Mormugao Port Commodities 2013-14 (in million tonnes) 2014-15 (in million tonnes) 2015-16 (in million tonnes) Iron ore & iron ore pellets 0.04 0.60 3.57 Other ores 0.16 0.27 0.21 Total ores 0.20 0.87 3.78 Alumina NA 0.02 0.02 Steel slabs 0.06 0.06 NA Hot rolled coils 1.21 1.63 0.84 Container cargo 0.12 0.17 0.14 Granite 0.36 0.30 0.31 Other cargo 0.28 0.27 0.31 Wheat 0.04 NA NA Sugar 0.06 0.01 0.01 Total exports 2.33 3.33 5.41 Source: Mormugao Port Trust, Goa; NA Not available 16

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 9 29 17 38 35 18 83 169 302 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the Department of Industrial Policy & Promotion (DIPP), FDI inflows into the state of Goa, during April 2000 to March 2017, totaled to US$ 924 million. Under the State Budget 2016-17, government has made a provision of US$ 1.53 million for the Tillari project. As per state budget 2017-18, for construction of the international airport at Mopa in Taluka Pernem, will be started in the current fiscal. The estimated project cost is US$ 467.2 million. The project will be developed by GMR Airports Limited. 350 300 250 200 150 100 50 0 FDI equity Visakhapatnam inflows, 2008-09 port traffic to 2016-17 (million(us$ tonnes) million) Source: Department of Industrial Policy & Promotion Current Ongoing Projects under GSIDC Project Category Start Date End Date Status as on July 2016 Estimated Cost (in US$ million) Construction of Bridge across river Mandovi at Panaji Connectivity July 2014 September 2017 40% completed 54.23 Construction of Panchayat Complex at Chicalim Public Amenities March 2014 February 2016 75% completed 1.26 Establishing infrastructure for Organic Waste Management Facility Environment February 2014 August 2016 80% completed 0.45 Infrastructure works for Sanjay Centre for Special Education at Bogda, Vasco. Sports & Education November 2014 November 2016 60% completed 1 Construction of Primary Health Centre at Navelim, Margao, Goa. Healthcare Facilities July 2015 October 2016 32% completed 0.51 17

ANNUAL BUDGET 2017-18 (1/2) The Gross Budget presented for 2017-18 is US$ 2.42 billion as against US$ 2.19 billion in 2016-17. A sum of US$ 145.59 million has been allocated for social sector, US$ 70.65 million has been allocated for child & women empowerment and US$ 28.26 million for tribal welfare. Increase in PWD budget allocation of US$ 282.61 million. 20 MLD water treatment plant for Panaji will be completed till 2018. 100 dual pump solar power water supply projects in remote areas will be introduced. New sewage system in Candolim & Bicholim. US$ 15.62 million provided for creating additional infrastructure for 36th National Games in 2018. US$ 22.31 million allotted to improve public transport, especially to tourist destinations. Dedicated traffic management plan for all major cities in Goa. Betul, Chapora & Talpana jetties will be upgraded. Focus on total implementation of current IT policy; Startup Promotion Board to be established. Regional plan to be completed & notified by December 2017. Source: Finance Department, Government of Goa 18

ANNUAL BUDGET 2017-18 (2/2) Annual budget (estimates in US$ million) Departments Budget allocations (2017-18) Education 234.79 Public works 307.76 Sanitation 51.99 Water resources 52.08 Mining 8.59 Agriculture 26.72 Social welfare 48.46 Medical and Public Health 79.63 Tourism 31.07 Panchayats 29.83 Urban development and municipalities 1.49 Sports & youth affairs 32.03 Transport 42.38 Source: State Budget 2015-16, Government of Goa 19

PHYSICAL INFRASTRUCTURE ROADS NH-17 runs along India's West Coast & links Goa to Mumbai in the north & Mangalore to the south. NH-4A running across the state connects Panaji to Belgaum (Karnataka) in the east. As of May 2015, the construction of 4 state highways, 10 major district roads & 76 rural roads are under progress. The state had a road density of 285.49 km per 100 sq. km of area, as of 2014-15. As per budget 2016-17, under the National Highway Development Programme (NHDP- Phase III), projects for 4 laning of NH-17 as well as NH-4 received the in-principle approval during 2015-16. As per budget 2017-18, work on Zuari Bridge and Mumbai-Goa state highway is under progress. During 2016-17, for construction of a high-level road bridge between Cottombi & Savoi-Verem, across the Mandovi river, the state government has proposed an allocation of US$ 3.20 million. Similarly, for undertaking a 2-lane bridge in order to connect Caranzalem & Kharwada in Madkai, an amount of US$ 2.49 million has been proposed during 2016-17. As per Budget 2017-18, dedicated cell would be made in PWD to look after PM Gram Sadak Yojana & other infrastructure works. By FY 17, Amona Virdi bridge & New Mandovi bridge is slated for completion, while the work of new Khandepar bridge costing US$ 44.18 million will be completed before 2020. Road safety audit worth US$ 32.73 million to be taken up in 2017. Road type Road length (km) National highways 262 State highways 232 District highways 815 Ongoing Road Development Projects Project Name Bambolim Goa Subway Conversion (from pedestrian to motorable) Project Cost (US$ Million) 1.41 Biana to Bogda roads 4.54 Bridge over river Tiracol 12.12 Bridge over river Zuari 5.19 Miramar Circle to NIO Circle and Raj Bhavan 9.45 Bridge over river Mandovi 55.10 Source: Directorate of Transport PWD: Public Works Department, State Budget 2016-17 20

PHYSICAL INFRASTRUCTURE RAILWAYS Source: Maps of India The total railway route in Goa is around 167 km long, comprising two rail tracks: the Konkan Railways line & the South-Western Railways line. These routes connect the state to other parts of the country. The Konkan Railways line runs from the north to the south and the South- Western Railways line runs from the west to the east. The rail tracks cross at the most important junction of the state, the Madgaon railway station; Vasco-da-Gama is the other important railway station. Konkan Railways, which connects Mumbai, Goa & Mangalore, has considerably boosted tourism. The Mormugao port is connected through a broad gauge line. The Government has pulled off a new double-decker luxury train service on Konkan Railways route that commutes tourists from Mumbai to Goa. In 2015, the Konkan Railway Corporation (KRC) commenced construction of 3 new railway stations, at Sarzora in South Goa and Neura & Mayem in North Goa, in addition to its existing 9 stations. In order to improve the connectivity between Goa and Mumbai, the Government of India introduced a Double Decker Express train on December 6, 2015. US$ 14.87 million has been allocated under 2017-18 budget towards Konkan Railways. 4 railway overbridges are to be built in Goa with financial support from the Rail Ministry. On 22nd May 2017, state-of-the-art, high-speed, 15 coach train Tejas Express, with a speed of 200 km/hour, made its debut. The train would run between Mumbai to North Goa, covering a distance of 579 km in 8.5 hours. The train has 2 classes executive chair car & chair car, and is equipped with facilities such as automatic doors, secured gangways, Wi-Fi, LCD screens, magazines, tea-coffee vending machines, bio-toilets, etc. 21

PHYSICAL INFRASTRUCTURE AIRPORTS (1/2) Goa has 1 airport at Dabolim, which functions as a domestic as well as an international airport. The state is connected to most Indian cities by air. The state ranks among the top 10 in all-india air traffic, most of which is tourism related. The state has good connectivity in terms of international flights, including chartered flights from European countries. Passenger footfalls at the Goa airport during 2016-17 reached 68,56,362 with aircraft movement reaching 47,801 flights. The state introduced a new terminal in February 2014 at Dabolim. As per state budget 2016-17, for the establishment of an international airport at Mopa in Taluka Pernem, on PPP basis, the Government of Goa has already issued proposals to shortlisted builders. The state has acquired 7.4 million sq. metres of land for the airport. The airport is being designed to handle 4 million passengers, in addition to the 4 million capacity at Dabolim, to create a total capacity of 8 million by 2018. The project will be developed by GMR Airports Ltd. The 1st phase of the airport is expected to be commissioned during financial year 2019-20. Moreover, for the development of the civil aviation sector in the state, an allocation of US$ 22.33 million has been proposed by the state government. GMR secured a deal worth US$ 687.33 million with the Government of Goa to develop a greenfield airport at Mopa. As per Budget 2017-18, Dabolim airport will be upgraded on a time-to-time basis even after the completion of Greenfield Mopa international airport. Source: Airports Authority of India, Department of Tourism, Government of Goa Economic Survey of Goa, 2014-15, Goa Investment Policy 2014 22

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2.63 3.08 3.52 3.54 24326 24018 3.89 27430 26804 28904 4.51 33422 5.37 39030 6.86 47801 PHYSICAL INFRASTRUCTURE AIRPORTS (2/2) Goa passenger traffic (million) Goa aircraft movement (Nos.) 8 60000 7 6 5 50000 40000 4 30000 3 2 1 20000 10000 0 0 Freight handled by Goa airport (tonnes) 2013-14 2014-15 2015-16 2016-17 4,767 4,498 4,880 4,103 Source: Airports Authority of India 23

PHYSICAL INFRASTRUCTURE PORTS Goa has 255 km of rivers & canals, providing an economical mode for goods transport. As of March 2016, the total capacity at Mormugao port stood at 48.79 MT. A total of 5.03 MT of capacity was added during period 2015-16. The River Navigation Department was established to provide safe, dependable & affordable transport facilities on different ferry routes of Goa s inland waters. The Mormugao harbour, a multi-purpose general cargo berth situated in the port town of Vasco-da-Gama, handles local & international maritime cargo traffic. During April-September 2016, the total traffic handled by Mormugao port was recorded to be 13.07(P) million tonnes, thereby registering a growth of 61.1% over the same period in the previous year, which is the highest growth rate among 12 major ports of the country. In addition, the general cargo traffic handled at the port was recorded to be 15.75 million tonnes. Moreover, containerised cargo of 345.42 thousand tonnes of gross tonnage was also handled by Mormugao port. State-of-the-art patrol vessel ICGS Shaunak, the largest & most advanced new generation OPV was added to Coast Guard fleet in February 2017. Ports Major ports Mormugao Minor ports Panaji Chapora Betul Talpona Tiracol Commodity-wise Traffic Handled at Mormugao Port during 2015-16 Commodity Quantity (metric tonnes) POL (Petroleum, Oil & Lubricants) 2,166 Iron ore 3,569,863 Bauxite 209,745 Granite 313,140 Container cargo 108,286 Pig iron 306,624 Note: P - Provisional Source: Ministry of Shipping, Government of India, Indian Ports Association, Mormugao Port Trust (1) As of October 2015 Total 4,509,824 24

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 357.2 380.9 386.9 400.2 430.02 400.02 400.02 412.45 540.56 548.1 PHYSICAL INFRASTRUCTURE POWER As of June 2017, Goa had a total installed power generation capacity of 548.08 MW. Visakhapatnam Installed power port traffic capacity (million (MW) tonnes) Of the total installed capacity, 499.32 MW was managed by central utilities and 48.71 MW by private utilities. Thermal power plants accounted for a significant share in the total installed capacity with 521.32 MW, whereas nuclear energy and renewable energy contributed 26 MW and 0.76 MW respectively. 600.0 500.0 Goa is one of the few states in India to achieve 100% rural electrification. 400.0 The state generates power from its 48 MW naphtha-based plant of Reliance Infrastructure Limited and it depends, largely, on the power allocated from the central generating stations. 300.0 The industrial sector is the largest consumer of electricity, followed by the domestic sector. Goa Electricity Department controls power infrastructure in the state. 200.0 The project for laying a gas pipeline by GAIL from Gokak to Goa for gas transportation to Goa has been completed. 100.0 During 2015-16, the state government commissioned a separate sub-station at Cuncolim for enhancing the distribution of power in the South Goa. 0.0 As per the state budget 2016-17, the state government has taken up various underground cabling projects for 2016-17 and has made required financial provisions for these projects. Note: * June 2017 Source: Central Electricity Authority, State Budget 2016-17 Economic Survey of Goa, 2014-15 25

PHYSICAL INFRASTRUCTURE TELECOM Goa is among the few states in the country to have 100% automatic telephone systems with a good network of telephone exchanges. Goa has a fibre-optic cable network spread through the state; it provides high-speed access for a wide range of internet-related services. All the gram panchayats in the state of Goa are connected with optical fiber. In Goa, all the Gram Panchayats are already connected with optical fibre cable. By the middle of December 2015, total number of post offices functioning in the state was recorded at 258, By the end of February 2017, 18,180,413 subscribers had submitted requests for mobile number portability in the state. Moreover, the tele-density in the state stood at 109.25%, as of March 2017. In December 2016, the Government of Goa announced the launch of Goa Yuva Sanchaar Yojna, under which the state would be providing 100 minutes of free talktime and 3 GB of internet data every month, free with a new sim card. Telecom infrastructure March 2017 Wireless subscribers (1) 93,898,514 Wireline subscribers (1) 1,879,865 Internet subscribers (1) 32,940,000 2 Tele-density (1) 109.25 Post offices 258 3 Some of the major telecom service providers Bharat Sanchar Nigam Limited (BSNL) Tata Indicom Bharti Airtel Aircel Limited Reliance Communications Source: Economic Survey of Goa, 2014-15, Telecom Regulatory Authority of India 1 Denotes Maharashtra including Goa 2 As of December 2016, 3 As of December 2015 26

DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE Panaji is one of the 65 cities identified under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Under JNNURM, two projects costing around US$ 15.6 million have been sanctioned for Panaji. Areas of development under these projects are heritage conservation and water supply for Panaji and surrounding areas under the jurisdiction of the corporation of the city of Panaji, Goa. As per the state budget 2017-18, the state government has planned construction of second integrated Municipal Waste Treatment Plant along with transfer station at Cacora in South Goa on Designed Built Finance Operate & Transfer (DBFOT) basis. As per budget 2017-18, US$ 81.81 million would be allocated for Panaji under the Smart City mission, 5 major cities to be connected with tourist places with frequent plying of KTC with a budget of US$22.31 million. All street lights would be converted to LED lights by December 2017, a 2nd solid waste treatment plant to be built at Cacora in South Goa, an amount of US$ 17.25 million has been allocated for garbage management. Water supply Water supply in Goa s urban and rural areas is 143 and 82 litres per capita per day (LPCD), respectively. Goa s water tariffs are among the cheapest in the country. The state has proposed an investment outlay of US$ 160.1 million for water supply and sanitation projects in its 12 th Five-Year Plan (2012-17). In 2015, under National Urban Information System (NUIS) scheme, Cuncolim, Curchorem Cacora, Mapusa, Margao, Mormugao of Goa have received US$ 1.9 million & US$ 1.3 million is yet to be received. National Urban Information System was introduced by Ministry of Urban Development in March 2006. The purpose of this scheme is to develop the geographic information system database for 152 towns/cities in the country. In Goa, 5 towns/cities are covered under this scheme. In April 2017, 6 rivers of Goa Mandovi, Zuari, Chapora, Sal, Mapusa & Chumbharjua have been notified by the union government as national waterways under the National Waterways Act, 2016. Funds allocated to Goa under SJSRY and NULM (US$ million) 0.6 0.5 0.4 0.3 0.2 0.1 0 0.23 0.37 0.14 0.51 0.13 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 0.2 Source: JNNURM, Ministry of Urban Development, Public Works Department of Goa SJSRY Swarna Jayanti Shahari Rozgar Yojana NULM National Urban Livelihoods Mission 27

DEVELOPMENT PROJECTS: PUBLIC PRIVATE PARTNERSHIP (PPP) PROJECTS As of July 2017, Goa had 9 PPP projects, of which one project is in pre-construction stage, three projects are under construction and five projects are in operation and maintenance stage. PPP Projects - Goa Project Name Sector Status Total cost (US$ million) 100 TPD solid waste management facility unit at Calangute Implementation of municipal solid waste treatment plant at Bardez in North Goa Water sanitation Operation and Maintenance Stage 22.65 Water sanitation Operation and maintenance stage 23.10 Development of Berth No. 7 Transport Operation and maintenance stage 33.60 Construction of Berth 5A; 6A at Mormugao in South Goa Transport Operation and maintenance stage 34.15 Bulk cargo berths No. 5A & 6A Transport Operation and maintenance stage 37.42 Re-development of berth 8, 9 and Barge berth with a capacity of 19.2 MMTPA at Marmugao port Setting up of 10 TPD solid waste management unit at Pernem Construction of cruise terminal at Aguada Transport Under Construction 188.14 Water sanitation Under Construction 2.33 Transport Under Construction 12.42 International Airport (Mopa) Project Transport Pre-construction Stage 465.64 28

DEVELOPMENT PROJECTS: SEZ AND INDUSTRIAL ESTATES (1/3) As of June 2017, Goa had seven formally approved and three notified special economic zones (SEZs). However, there are no operational SEZs in the state and no in-principle approved SEZ. On completion, the SEZs would primarily cover knowledge-based industries such as biotechnology and IT/ITeS. The Goa Industrial Development Corporation (Goa-IDC) assists in establishing industries in specific industrial areas and estates. Goa-IDC has established 20 industrial estates in various talukas of Goa. It plans to expand eight of these existing units and establish another five industrial estates. The Government is committed to make Goa an aspirational investment destination for best-in-class manufacturing, tourism, entertainment and other service industries, including research and knowledge-based industries. Accordingly, the Government has set an ambitious target of creating 50,000 jobs by 2019, facilitating new investments of around US$ 4.2 billion in the state during 2014-19. Sector-wise Visakhapatnam formally approved port traffic SEZs (million in Goa, tonnes) June 2017 14% 14% 14% 29% 29% IT/ITES Biotech IT Pharmaceuticals Gems and Jewellery Sector-wise formally approved SEZs in Goa, July 2016 Sector Developer Number of SEZs IT/ITeS K. Raheja Corp Pvt. Ltd. 1 Biotechnology Pharmaceuticals Peninsula Pharma Research Centre Pvt. Ltd Meditab Specialities Private Limited 1 1 Source: Ministry of Commerce & Industry, Department of Commerce, Goa Industrial Development Corporation, Economic Survey of Goa 2014-15 29

DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL ESTATES (2/3) Formal approvals granted in the Board of Approvals after coming into force of SEZ Rules Name of the developer Location Type Area (hectares) Meditab Specialities Private Limited Bhut Kham, Kerim Industrial Estate, Taluka Ponda, Goa Pharmaceuticals 123.20 Paradigm Logistics and Distribution Private Limited Phase IV - Verna Industrial Estate, Goa. IT/ITeS 40.25 K. Raheja Corp Pvt. Ltd. Verna Industrial Area, Goa IT/ITeS 105.91 Peninsula Pharma Research Centre Pvt. Ltd. Sancoale Tal- Mormugao, Goa Biotech 20.365 Planetview Mercantile Company Limited Verna, Goa Gems and jewellery 13.28 Inox Mercantile Company Private Limited Verna, Goa Biotech 48.48 Panchbhoomi Infrastructure Private Limited Survey No. 260, Village Socorro, Bardez Taluka, North Goa District, Goa IT 18.5 Growth in number of MSMEs since 2000 Year No. of units 2000 5,949 2005 6,954 2010 7,350 2014 7,793 Source: Ministry of Commerce & Industry, Department of Commerce 30

DEVELOPMENT PROJECTS: SEZS AND INDUSTRIAL ESTATES (3/3) Taluka Ponda Pernem Bardez Bicholim Sattari Tiswadi Salcete Mormugao Quepem Sanguem Canacona Industrial estate Bethora, Madkai, Kundai, Shiroda Tuem Colvale, Mapusa, Pilerne, Tivim Bicholim Honda and Pissurlem Corlim Verna, Margao and Cuncolim Sancoale Kakoda Sanguem Canacona Source: Goa Industrial Development Corporation 31

SOCIAL INFRASTRUCTURE EDUCATION (1/2) The state has a literacy rate of 88.7 per cent according to the data of Census 2011; the male literacy rate is 92.65 per cent & the female literacy rate is 84.66 per cent. During 2015-16, the total enrolments in schools were recorded to be 239,884. As of 2015-16, the number of government as well as government-aided & unaided primary schools was recorded to be 1,190. Similarly, the state recorded 434 middle schools, 403 secondary schools & 104 higher secondary schools under these categories. As per state budget 2017-18, the Government of Goa has proposed to allocate US$ 6.24 million as financial assistance for Goa University, Goa is planning to set up an Indian Institute of Science, Education and Research, an Indian Institute of Technology (IIT) and an Indian Institute of Management (IIM) by 2035; to become a leading educational hub in the country. Vasco, Margao & Panaji are proposed to be developed as a smart cities in the state. In Budget 2017-18 the state government allocated US$ 0.89 million additional grants for primary schools, that impart education in Marathi & Konkani, 15 additional supervisors & 50 counselors in all schools & higher secondary s to be recruited, 11th standard students to be given laptops with a budget of US$ 7.44 million, transport facility for students, integrated educational complexes at Mapusa & Margao to be developed. Literacy rate (%) Total 88.70 Male 92.65 Female 84.66 Some of the higher education institutions Shree Rayeshwar Institute of Engineering and Information Technology Padre Conceicao College of Engineering National Institute of Oceanography Parvatibai Chowgule College of Arts & Science Don Bosco College St. Xavier s College BITS Pilani Goa campus Source: Economic Survey of Goa, 2014-15, Goa State Budget 2016-17 32

SOCIAL INFRASTRUCTURE EDUCATION (2/2) Goa has a number of leading engineering, business management, medical and legal institutes. The Maritime School, under the Captain of Ports Department, Government of Goa, is among the first of its kind in the country. As per the state budget 2016-17, under Goa Scholarship Scheme, the state government proposed to add ten more scholarships for students by providing a unique 2 year funding window from the date of their selection. The state government is planning to set up its 2nd medical college in an under-construction district hospital at Margao. Goa College of Pharmacy, set up in 1842, is one of the oldest institutes in India. It offers bachelor s, master s & diploma courses in pharmacy. In 2015, the institute had 60 seats for bachelor's degree, 60 seats for diploma & 23 seats for master s degree in various fields of pharmacy. As per state budget 2017-18, the Government of Goa has proposed to implement a new programme in the state for providing yoga training as well as value education to the students of 350 primary schools through Education Development Corporation of Goa. Educational infrastructure, 2015-16 (Government, Government Aided & Unaided) Primary schools 1,190 Middle schools 434 Secondary schools 403 Higher secondary schools 104 Vocational and professional institutes 30 1 Teachers training institutes 5 1 Universities & colleges for general education Universities & colleges for professional education 25 1 27 1 Industrial Training Institutes (ITIs) 14 1 Source: Educational Statistics at a Glance 2015-16, Government of Goa, 1 2014-15 33

SOCIAL INFRASTRUCTURE HEALTH The state has better health ratios compared to the rest of the country. Annually, around 276 persons were served per hospital bed during 2014-15. Some of the renowned hospitals in the state include Apollo Victor Hospital in Margao, Manipal Hospital in Panaji & Vrundavan Shalby Hospital in Mapusa. As of December 2016, the number of primary health centres & sub centres in Goa were recorded to be 22 & 212, respectively. In Budget 2016-17, the state government has proposed to construct a new building of 44 bedded PHC # Cansaulim & a new building of 12 bedded PHC # Prina during 2016-17. The projects are under construction as per Budget 2017-18. Further, the state government has also made a provision of US$ 2.43 million for buildings, US$ 0.18 million for books & periodicals & US$ 0.70 million for various equipment for Goa Medical College. A provision of US$ 0.12 million has also been made for supplies and materials & US$ 3.10 million is allocated for the completion of the 2nd phase of the building of Goa Dental College. Health infrastructure (As of December 2016) Primary health centres 22 Sub centers 212 Community health centres 4 Active district hospitals 2 Active sub-district hospitals 2 Health indicators (2015) Birth rate 1 14.6 Death rate 1 8.5 Infant mortality rate 2 9.62 In the Budget 2017-18 an amount of US$ 22.31 million has been set aside to set up a burns unit in Goa Medical College (GMC). Primary health centres will be upgraded with more beds & the New South Goa District hospital to be ready for public use in 2018. The state government announced ban on use of plastic bags effective from July 2017. Manufacturing, selling and carrying plastic bags would lead to imposition of a fine of up to US$ 74.37. Source: Goa Economy in Figures - 2015, Economic Survey of Goa, 2014-15 1 Per thousand persons, 2 Per thousand live births PHC# -Primary Health Centre, State Budget 2016-17 34

CULTURAL INFRASTRUCTURE There are several sports complexes in Panaji, Margao, Ponda & other cities. Football is the major sporting activity; cricket is also growing in popularity. The state is home to the Goa Football Association & many renowned clubs like Sporting Clube de Goa & the Vasco Sports Club. Goa has a number of churches, chapels & convents of unmatched architectural beauty; most of these were built during the Portuguese rule. Some of the famous churches include Church of St. Francis of Assisi, Basilica of Bom Jesus (mortal remains of St. Francis Xavier enshrined), Lady Rosary and St. Augustine. The 5 th Youth Delphic Games 2016 was hosted in Goa from February 1-14, 2016. The game combined 6 art categories & over 70 sub-categories, with many artistic events and activities. The age limit for participating in these games was between 15 to 25 years. The key hotels in Goa include Leela Kempinski, at Cavelossim, Taj Fort Aguada at Bardez, Park Hyatt at Cansaulim & the Intercontinental at Canacona. The Panjim Inn, Cidade-de-Goa & Majorda Beach Resort are well-known hotels in Margao. Goa is popular for traditional forms of performance arts like Natak, Tiatr & Zagor as well as modern art forms like Goan trance. Directorate of Sports & Youth Affairs of Goa has launched the Vision 2020 programme in an effort to encourage sports & produce Olympic players from the state. Department of Art & Culture organizes Lokotsav, to promote handicrafts & folk forms. The 18th Lokotsav festival was organized in January 2016. Further, as per the budget 2016-17, the state government had proposed to implement a project on Goa s intangible cultural heritage for its identification, mapping & development across the state. From November 12-22, 2016, the state hosted an international event with 15 of the world's best travel bloggers, to showcase its rich cultural diversity, history, food, adventure & luxury experience. According to the state tourism department, the event was expected to be witnessed by 4.5 million people across 30 countries, digitally. Construction of Konkani Bhavan under Konkani Academy is proposed under state budget 2017-18. In December 2016, Goa hosted a new music festival Wonderwall, which was curated by the Indian DJ Nikhil Chinappa. At the Goa carnival, the Indian Navy float showcased the profile of naval branch of the Indian armed forces, which provides coastal security & carries out anti-piracy operations. Goan film industry announced plans to collaborate with Jharkhand for making films. Under the central government 'Ek Bharat Shreshtha Bharat programme, the government of both the states organized a festival at Inox Courtyard at Panaji on May 27 2017. 35

INDUSTRIAL INFRASTRUCTURE Goa Industrial Development Corporation (Goa-IDC) is the nodal agency established for setting up of industrial estates & offering developed plots to industrial units in the state. Goa-IDC has established 20 industrial estates, spread across the state s talukas & is currently working on the expansion of existing industrial estates as well as establishing new ones. 7 ITIs (industrial training institutes) in the state of Goa are covered under the World Bank Assisted Vocational Training Improvement Project (VTIP) while 1 ITI in the state has been taken up by the central government for upgradation through public private partnership. Industry clusters Verna Industries Rubber, plastics, petroleum products, pharmaceuticals, electronics and telecommunication equipment. Bicholim Engineering, oil products, plastics, leather, textiles, food processing, soaps and agro products. Kundaim Rubber, plastics, petroleum products, pharmaceuticals, steel fabrications and aluminum furniture. Margao Printing, plastics, herbal hair oils, cosmetics, ice blocks, engineering items and industrial diamond tools. Mormugao Corlim Vasco Shipbuilding and repair. Metal works, engineering, cold storage, food processing, electronic products, paper products, chemicals, paints and varnishes. Shipbuilding and repair. Source: Goa Industrial Development Corporation 36

SMART CITY & AMRUT Panaji city is one of the 13 shortlisted cities in Fast Track Mode of City Challenge under Smart Cities Mission of the Ministry of Urban Development, Government of India. Through participation in this challenge, Panaji aims to fast track the achievement of a world- class city while retaining its heritage and cultural values. In order to convert Goa into a smart state, the CCP (Corporation of the City of Panaji) has set forth sub goals to create an enabling environment to preserve local heritage and to promote cultural tourism, to increase engagement of citizens to improve quality of life, to transform the city into a biodiverse and a sustainable city, to redesign Panaji as an inclusive ecomobile city and to enhance resource efficiency to attain a landfill- free city. The winning area based strategies proposed by Panaji include Retrofitting of Open Spaces Management, of Lake, River Precinct and sea shore protection, of Heritage areas, of Flood Management and unique projects such as building incubation centers and GIS based property and land management system. As per the Smart City Proposal, the list of projects in Panaji include: Area Based Development: Service improvement for urban poor in Mala Fontainhas area, Integrated Urban Water Management, Church Square Revitalization, Provision of basic services in entire area (2sqkm), etc Smart Transportation and Eco Mobility: Digital Enabled System for Public Bike Share System, Air Quality monitoring stations, Smart Parking, Smart Component for buses (GPS, automated fare collection etc.), etc Smart Environmental Services: Trolley Bins with RFID tags, Biometric Attendance in 12 Zonal Offices, CCTV Surveillance of black spots, etc Under AMRUT (Atal Mission for Rejuvenation & Urban Transformation) scheme by the Government of India, the city of Panaji has been selected from the state of Goa. The main aim of the scheme is to promote use of public & non-motorised transport, & provide each household with tap connections as well as enhance & develop greenery across these local bodies during 2015-16 to 2019-20. The first instalment of Central Assistance (i.e. 20% of approved amount of Rs. 4.07 crores) has been released to the state of Goa. Source: Census Organization of India, Smart Cities Mission, Corporation of the City of Panaji, AMRUT 37

KEY INDUSTRIES (1/2) Apart from having an established iron ore mining industry, Goa has emerged as a manufacturing base for several leading companies in areas such as fertilisers, tyres & tubes, cement, electrical machinery, fish-net making machines, automatic washing machines, printed circuit boards, pharmaceuticals & pharmaceutical machinery. Mining (iron ore and manganese), pharmaceuticals, iron & steel industries are located in North Goa, while mining & shipbuilding industries are present in South Goa. Tourism is the largest segment in the services sector; the Goa Tourism Development Corporation (GTDC) is responsible for promoting tourism in the state. For the development of Ease of doing business and investor friendly ecosystem initiatives in the state, the state government has proposed to establish an EMS (Electronic Monitoring System) that will track the progress of all IPB granted single window clearances, as per state budget 2016-17. As per state budget 2016-17, the state government decided to impart skill-based training across various sectors to around 5,000 youths every year. The state is in the process of developing the logistics sector in Goa by forming a special logistics group and constructing several bridges to address the existing deficiencies with regard to logistics and warehousing. As per the state budget 2016-17, the state government proposed to take up the establishment work of a state-of-the-art festival venue as well as an IFFI Secretariat in the state on PPP basis. For the same purpose, an allocation of US$ 152.8 thousand has been made by Government of Goa. A dedicated task force is being set up to implement the project on fast track basis, as per Budget 2017-18. Key industries In Goa Tourism Food processing IT/ITeS Biotechnology Mining Pharmaceuticals Fishing Source: Economic Survey of Goa, 2014-15, State Budget 2016-17 38

KEY INDUSTRIES MAJOR CLUSTERS (2/2) The cluster is run by the Goa Pharmaceutical Manufacturers Association (GPMA) and accounts for around 12% of the country s medicine production. Pharmaceutical cluster Principal products manufactured are tablets, capsules, ointments, liquid orals & injectibles. The cluster has an annual growth rate of 18-20%; and, currently, 40 units are functioning under the cluster. Export of pharmaceutical products from Goa has increased from 2,157 metric tonnes in 2012-13 to 5,076 metric tonnes in 2015-16. The cluster is run by Goa Cashew Entrepreneurs Welfare Society with 300 functional units. Cashew cluster Cashew karnel is the major product manufactured. Fixed investment of US$ 5.2 million has been made. Export of cashew karnels has increased from 532 metric tonnes in 2012-13 to 775 metric tonnes in 2015-16. Source: Ministry of MSME, Government of India, Brief industrial profile of South Goa district 39

KEY INDUSTRIES IT/ITeS (1/2) Despite being a small state and a late starter in the IT industry, Goa is ideally placed to capitalise on the opportunities available in the sector. Goa is one of the most literate states in India, with a literacy rate of over 88.7%; most Goans are conversant with the English language, which is the lingua franca for the IT industry. As per state budget 2016-17, Government of India granted the approval to the state government for constructing the Electronics Manufacturing Cluster in Tuem by providing a central assistance of US$ 7.63 million to the state government. The project is under progress and being developed by Info Tech Corporation of Goa Ltd. The state government is also planning to develop an electropreneur park in the Goa College of Engineering in association with India s Software Technology Parks and contribution of local ESDM industry, as per the budget 2016-17. The state is close to several business centres, such as Mumbai, Pune and Bangalore, of the country that provide growth opportunities. Goa University offers a postgraduate course in computer sciences, and there are over 250 other institutes imparting IT training and education. Info Tech Corporation of Goa Ltd, an undertaking of the state government, initiated the work of establishing an IT Park at Kadamba Plateau at Tuem during 2015-16. Some of the key players Smartlink Network Systems Ltd Zenith Computer Pvt Ltd PCS Technology Ltd Crompton Greaves Rajiv Gandhi IT habitat, Dona-Paula Situated seven kilometres away from the state capital of Panaji. Developed on an area of around 95 acres with the aim to attract IT/ITeS/BPO/KPO industries. IT habitat is expected to attract investments to the tune of US$ 147 184 million. Government aims to create employment for 10,000 12,000 persons through this park. Under the budget 2017-18, work for setting up a new IT park in Chimbel is targeted for completion on priority. In April 2017, the state government announced an IT fund worth US$ 25.13 million, out of which USD 2.23 million is to be used for boosting the startup sector in the state. The government has also proposed a startup promotion board, and USD 74,371.56 to encourage incubation centers across the state. Source: The Directorate of Industries, Trade and Commerce, Government of Goa 40

KEY INDUSTRIES IT/ITeS (2/2) Formerly D-Link (India) Private Limited, Smartlink Network Systems Ltd is one of India s leading networking companies, offering an integrated value proposition that includes design and development, manufacturing, sales & marketing and service & support. It was established in 1993. Smartlink Network Systems Ltd The company has certified state-of-the-art manufacturing plants as well as a software and Research & Development (R&D) centre at Verna, Goa. In 2016-17, the company earned US$ 3.75 million in revenue. It has 17 offices in the country. Established in 1980, the company is one of the largest personal computer companies in India. It employs around 800 professionals and has 15 branches across the country, with a 60,000 sq ft of production facility in Sancoale Industrial Estate, Zuari Nagar. Zenith Computer Pvt Ltd In 2014-15, the company earned US$ 3.9 million in revenue. PCS is an Indian technology company headquartered in Mumbai. The company focuses on facilities management services, software services as well as computer hardware. The company s net revenue reached US$ 4.75 million in 2016-17. PCS Technology Ltd PCS has a manufacturing facility in Goa, where it produces desktop computers, notebook computers and servers. It has a production capacity of 7,000 to 8,000 desktop computers per month. 41

KEY INDUSTRIES MINING (1/2) The mining belt of Goa covers an area of approximately 700 sq km & is mostly concentrated in the 4 talukas of Bicholim, Salcete, Sanguem & Quepem. Goa mineral reserves Mineral Reserves (In 000 tonnes) Iron ore exports from the state increased from 0.60 million tonnes in 2014-15 to 3.57 million tonnes in 2015-16, thereby witnessing a huge growth. Most mines in Goa are of open-cast type, which necessitates the removal of over burden overlying the iron ore formations. During 2015-16, the state government created a separate District Mineral Foundation under the MMDR Act, 1957, as per which the state s mining firms need to deposit an additional amount of 30% of the royalty paid to this fund. Iron ore-hematite 6,42,113 Iron ore-magnetite 2,15,557 Manganese 23,271 Bauxite 53,072 Quartz/silica sand 20,004 Some of the key players Sesa Goa The Dempo Group V.M. Salgaocar and Company Ltd Goa bauxite exports (tonnes) 2013-14 2014-15 2015-16 153,400 267,220 209,745 V.S. Chowgule and Company Ltd Source: Ministry of Mines, Government of India 42

KEY INDUSTRIES IT/ITeS (2/2) Vedanta Limited Vedanta Limited, formerly known as Sesa Sterlite, is a well-known mining company in India. It is the flagship company of the Vedanta Group and is India's largest iron ore exporter in the private sector. The Sesa Group of companies have been involved in iron ore mining for over five decades. Over the last two decades, the company has diversified into manufacturing of pig iron and metallurgical coke. As of March 2013, Sesa Goa has the rights to exploration & production of an estimated 433 million tonnes of iron ore. In 2012-13 and 2013-14, the company produced 3.7 million tonnes and 1.5 million tonnes of iron ore, respectively. Apart from Goa, it has mining operations in Karnataka. During 2016-17, the company reported revenues of US$ 11.82 billion. The Dempo Group The Dempo Group is one of the state s leading mining and export companies. It has two subsidiaries for the mining business, i.e., Dempo Mining Corporation Private Limited and V S Dempo Corporation Private Limited. The company s key products are iron ore fines, calibrated iron ore lumps and low-phosphate magnetite concentrates. Dempo has 19 mining leases in Goa, which are spread across 1,800 hectares. V.M. Salgaocar & Bro Pvt Ltd The company was founded in 1952 as a mining and export company. It is one of the leading suppliers of processed iron ore to large steel makers such as POSCO and Nippon Steel Corporation (NSC). The company has its corporate office at Vasco-de- Gama and mining facilities in four different locations in Goa. It has diversified into the hospitality, shipping, real estate and education sectors. Over 10 million tonnes of material is handled at the mines every year during iron ore extraction. V.S. Chowgule and Company Ltd Chowgule Mining Division is a part of the Chowgule Group. The company has mines and three beneficiation plants in Goa (at Pale, Tudou and Costi). Chowgule s run-of-mine ore production exceeds five million tonnes per annum, and its beneficiation plants produce over 3.5 million tonnes of iron ore and pellets every year. 43

KEY INDUSTRIES PHARMACEUTICALS (1/3) Export of pharmaceuticals products from Goa was recorded to be 5,076 metric tonnes during 2015-16. The pharmaceuticals industry is one of the major employers in the state. A large number of companies, such as Cipla, Aventis and Blue Cross, have set up manufacturing facilities in Goa. Apart from the incentives and policy thrust, Goa has been selected because of its ambience and pollution-free environment, which is conducive to the pharmaceuticals industry. Goa Pharmaceutical Manufacturers' Association (GPMA) is a registered body formed with the objective of uniting the pharmaceutical manufacturers in Goa. According to the 2016-17 state budget, the state government came up with the concept of Deen Dayal Swasthya Seva, for providing the people of the state with a health cover through the insurance policy scheme, which includes a total of 443 medical treatments and procedures. In November 2016, Prime Minister of the Republic of Mauritius, inaugurated AYUR Herbarium project in North Goa, an initiative in association with Union AYUSH Ministry. Some of the key players Ranbaxy Laboratories Ltd Aventis Pharma Ltd Blue Cross Laboratories Ltd Cipla Ltd Source: Ministry of MSME, Government of India 44

KEY INDUSTRIES PHARMACEUTICALS (2/3) Sun Pharmaceutical Industries Ltd Sun Pharmaceutical Industries Ltd, one of India's largest pharmaceutical companies, is an integrated, researchbased pharmaceutical company with a global presence The company has 50 manufacturing plants globally and reported revenues of US$ 4.70 billion during 2016-17. The company announced the acquisition of Ranbaxy Laboratories Limited in April 2014, and completed the acquisition deal in March 2015. The company manufactures a wide range of generic medicines in its 45 manufacturing sites across the globe. Aventis Pharma Ltd Established in May 1956, the company has Sanofi-Aventis and Hoechst GmBH as its major share holders. The Goa site has been certified by the World Health Organisation (WHO). The company s Goa facility is a global sourcing site for products, including the Daonil range, Cardace, Frisium, Stilnoct and AmaryI. The Goa site employs around 230 people. Established in 1981, Blue Cross has carved a significant niche for itself in the Indian pharmaceuticals market. In addition to its plant in Nashik, the company has a 12,000 sq m plant in Verna, Goa. Blue Cross Laboratories Ltd The company s products are sold in over 18 countries across the globe. WHO and local Food and Drug Administration (FDA) have approved the Goan plant. The company produces drugs belonging to major therapeutic segments like anti-bacterial, pain management, antispasmodic, cough and cold preparations, cardiology, diabetes, dermatology, anti-ulcer, antipyretics, etc. Blue Cross s annual sales turnover is around US$ 52 million and it has an employee strength of over 1,000. Cipla Ltd Established in 1935, Cipla is one of the oldest pharmaceutical companies in the country. It manufactures and markets bulk drugs and formulations. The company posted revenues of US$ 2.27 billion in 2016-17, and has a plant in Verna industrial estate. Among other formulations, the Goan plant manufactures anti-hiv/aids drugs that have earned Cipla a strong presence across the globe. 45

KEY INDUSTRIES TOURISM For the year 2017-18, the state government has made an allocation of US$ 31.08 million to the tourism sector. Visakhapatnam Tourist arrivals port in traffic Goa (million (in million) tonnes) Innovative marketing strategies to project Goa as an all-time leisure destination have resulted in higher tourist inflows over the years. 7 Domestic Foreign As of 2016, the number of passengers who arrived in the state on the basis of e- tourist visas was recorded to be 1,04,442. Moreover, the state recorded a total of 6,80,683 foreign tourists from over 141 countries across the globe. For FY 2016-17 (up to February 13, 2017), the number of charters that landed in Goa stood at 632 with 1,57518 passengers. As of December 2015, Goa had 3,358 hotels, with a total of 31,767 rooms and a bed capacity of 56,595. The state government has been proactive in encouraging public-private partnerships for promoting tourism by instituting a corpus fund. Tourism by Tourists` a campaign started by Goa tourism, in December 2016, bagged the Asia Pacific Sabre Award The number of tourists arriving in Goa by chartered flights from Russia witnessed an increase in December 2016 in comparison with 2015, with the number of tourists increasing from 20,560 in December 2015 to 29,432 in December 2016. 6 5 4 3 2 1 0.49 0.39 0.38 0.44 0.45 0.45 2.62 0.35 2.21 2.02 2.13 2.2 2.22 2.33 0.51 3.54 0.54 4.76 0.68 5.65 With the continuous in-flow of tourists, Russian & European tourists, in collaboration with locals from Arambol to Patnem, have started offering yoga training classes to people. The Ministry of Tourism of India has sanctioned US$ 15.42 million for Development of a Coastal Circuit II in Goa under Swadesh Darshan Scheme. 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Department of Tourism, Government of Goa, Economic Survey of Goa, 2014-15 46

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 KEY INDUSTRIES FISHERIES Goa has a coastline of about 104 kms and inland waterways of about 250 km. The coast is full of creeks and estuaries formed by rivers; 101.05 thousand tonnes of marine fish and 4,403 tonnes of inland fish were harvested in 2016. As per the economic survey 2016, 105,456 tonnes of fish were caught in 2016. Moreover, in order to boost ornamental fish farming in the state, a model ornamental fish farm is expected to be set up during 2016-17 by the Department of Fisheries. 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 Visakhapatnam Annual fish port catch traffic ( 000 (million tonnes) tonnes) 91.1 88.7 2.4 80.6 87.0 3.0 3.2 3.3 86.1 86.6 87.9 128.1 105.7 101.1 3.5 3.8 4.6 3.7 4.6 4.4 5.0 4.0 3.0 2.0 1.0 0.0 For 2016-17, the state government has also proposed to maximize the petrol quota from 1,200 litres to 1,700 litres, for the canoes of the fishermen. For this purpose, a financial assistance of US$ 0.77 thousand will be allocated by the state government. Marine (LHS) Inland (RHS) Source: Economic Survey of Goa, 2014-15 State Budget 2016-17 Visakhapatnam Fish production port in traffic Goa ( 000 (million tonnes) tonnes) 140 120 100 80 60 40 20 0 77.9 114.1 117.9 115.1 111.9 2012-13 2013-14 2014-15 2015-16 2016-17(P) Note: 2016-17(P) - provisional Source: Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture, Government of India 47

KEY INVESTMENT PROMOTION OFFICES (1/2) Agency Goa Industrial Development Corporation (Goa-IDC) Economic Development Corporation The Goa State Infrastructure Development Corporation Goa Handicrafts Rural and Small Scale Industries Development Corporation Goa Tourism Development Corporation Goa Horticulture Corporation Info Tech Corporation of Goa Ltd (ITG) Description It has been established with the purpose of securing land and assisting in fast and orderly establishment of industries in the 20 designated industrial areas and estates. This is a state Government-promoted financial institution to operate and manage government-promoted financial schemes. It acts as an investment company and provides financial assistance to entrepreneurs for starting as well as expanding business units. This was set up as a Special Purpose Vehicle (SPV), with the basic aim to develop infrastructure in a timebound manner. It promotes traditional arts and crafts, fashioned by the state s artists and artisans. It performs functions related to procurement and distribution of indigenous and imported raw material, especially for small scale units. It has been instrumental in starting the Deen Dayal Swayamrojgar Yojana, a scheme to develop selfemployment opportunities for the youth. It promotes tourism and related activities in Goa. It focuses on developing eco-tourism, heritage tourism, adventure tourism, medical tourism and event tourism. It promotes investments in export-oriented projects, especially for the cultivation of exotic fruits and vegetables, floriculture, etc. It is entrusted with the development of horticulture estates and establishment of sales outlets for local produce through establishments called Krishi Ghars. It looks after the development of IT-related infrastructure, ITeS and implementation of the government s e-governance objectives. 48

CONTACT LIST Directorate of Industries, Trade and Commerce Goa Chamber of Commerce & Industry Udyog Bhavan, Panaji- 403 001 Goa Phone: 91-832-2226377 Website: http://www.goaditc.gov.in/ Narayan Rajaram Bandekar Bhavan, T.B Cunha Road, P.O. Box 59, Panaji - 403 001 Phone: 91-832-2424252 E-mail: goachamber@goachamber.org Website: http://www.goachamber.org/ 49

KEY APPROVALS REQUIRED Approvals and clearances required Departments to be consulted Estimated time in days Incorporation of company Registrar of Companies N.A. Registration, Industrial Entrepreneurs Memorandum (IEM), Industrial Licences High Powered Coordination Committee (HPCC) for large and medium-sized projects, Director of Industries, Trade and Commerce for small and micro projects N.A. Allotment of land Goa-IDC 8 to 15 Permission for land use Goa-IDC 8 to 15 Site environmental approval Goa State Pollution Control Board and Ministry of Environment and Forests 60 No objection certificate and consent under Water and Pollution Control Acts Goa State Pollution Control Board 7 to 14 Approval of construction activity and building plan Town and Country Planning Authority 30 Sanction of power State Electricity Department Up to 60 Registration under the State Sales Tax Act and Central and Excise Act Sales Tax Department and Central and State Excise Department N.A. N.A. Not Available 50

APPROVAL PROCESS (1/2) The Goa Industrial Policy 2003 has revamped the single-window clearance mechanism in the state. HPCC, chaired by Goa s Chief Minister, has been appointed responsible for dealing with large projects. Members of the committee include seniormost officers of concerned state departments. The Director of Industries, Trade and Commerce handles small scale industries. The Goa-IDC and the District Industries Centre act as nodal agencies for various projects in the state. Goa-IDC handles the creation of SEZs in the state. Investment handled Under the Chairmanship of Nodal agency Goa Industrial Greater than US$ 1.09 million HPCC The Chief Minister Development Corporation (Goa-IDC) Below US$ 1.09 million Department of Industries, Trade and Commerce Director of Industries, Trade and Commerce District Industries Centre 51

APPROVAL PROCESS (2/2) Goa Investment Policy 2013, which laid a special thrust on development of Special Investment Regions, aims to kick start investment in Goan economy. This policy aims to articulate various initiatives being undertaken to make Goa a preferred and aspirational investment destination. It aims to create an institutional framework for facilitating investments in the thrust areas as well as other areas decided upon by the Investment Promotion Board (IPB)/Government of Goa on an ongoing basis. Process for industrial set up in Goa 15 days Rejection Land not available Preliminary Project Report submitted to IPB Evaluation and recommendation by satellite expert consultant Rejection IPB approval Check on land availability in industrial estates 30 days Land earmarked Detailed templatised proposal submitted to IPB Receipt of all clearances for unit to establish facility and start operations Nodal officer approval who would assist with all approvals Approval IPB decision on investment proposal along with all approving authorities Evaluation and recommendation by satellite consultant 30 days 30 days 30 days 52

COST OF DOING BUSINESS IN Cost parameter Cost estimate Industrial land (per sq ft) US$ 10 50 Office space rentals (per sq ft per month) US 60 cents to US$ 2 Residential rentals (for a 2,000 sq ft house per month) US$ 800 1,300 Five-star hotel room (per night) US$ 160 800 Power cost (per kwh) Industrial: US 4.7 7.3 cents Labour cost (minimum wage per day) US$ 3.9 5.5 Source: Industry sources, Goa-IDC, Ministry of Labour and Employment, Government of India, Electricity Department, Government of Goa 53

STATE ACTS & POLICIES (1/3) The Government of Goa has introduced the new Goa Investment Policy 2014 in order to boost investor confidence and attract new industries to Goa. Main objectives of the new policy include: making Goa an aspirational investment destination by making business a pleasure, for best in class manufacturing, knowledge-based, tourism, entertainment and other service industries, while improving the environmental and social indicators of the state. The state Government has announced plans to introduce a comprehensive IT policy with the objective of supporting the Electronic System Design and Manufacturing (ESDM) sector in the state. The state Government is working on the new tourism policy with a vision of overall tourism development and to engage with private players to invest and develop infrastructure in the state. 54

STATE ACTS & POLICIES (2/3) Objectives IT Policy 2015 To make state of Goa most preferred destination for investors there by making IT/ITeS/ESDM a vibrant industry leading to inclusive growth and employment generation. Mining Lease Policy, 2014 The state Government can directly auction the leases in order to secure the best returns for the grant of leases by way of a competitive bidding process. Goa Investment Policy 2014 Creating 50,000 jobs and investing US$ 4.2 billion in new projects in the next five years. Providing 24x7 high-quality power supply and logistics infrastructure to industries. Biotech Policy 2006 To ensure accelerated growth in all areas of the biotechnology sector such as education, research and economic sectors covering healthcare, agriculture, industry, services, environment management and employment generation. Objectives of the policy include prioritisation of the thrust areas for basic and applied research and technology development, and promotion of innovations in R&D by providing financial and infrastructural support. Goa Special Economic Zone Policy 2006 To augment infrastructure facilities to boost exports. Industrial Policy 2003 To ensure accelerated industrial development, catalyse economic growth and balanced regional growth, protect the environment and create sustainable employment for local youth of the state. Key areas identified are pharmaceuticals, drugs and biotechnology, food processing, agro-based, IT and ITenabled services, eco-tourism/heritage tourism/adventure tourism/event tourism/medical tourism and entertainment industries. 55

CONFERENCES/SUMMITS FOR 2016-17 Summit / Conference Venue of Summit / Conference Date International Conference on Marine Science & Aquaculture (MSA 2017) Goa 10 th September, 2017 World Convention on Recycling and Waste Management (WCRWM 2017) Goa 8 th October, 2017 International Conference on Internet Of Things (ICIOT-17) Goa 15 th October, 2016 World Summit on Plant Genomics (WSPG 2017) Goa 10 th November, 2017 International Conference on Civil, Architectural and Environmental Sciences (CAES 2017) Goa 26 th November, 2017 International Congress for Conservation Biology (ICCB 2017) Goa 17 th December, 2017 International Conference on Green Energy Technology (ICGET 2017) Goa 31 st December, 2017 Source: Conference Alert 56

EXCHANGE RATES Exchange rates (Fiscal Year) Year INR equivalent of one US$ 2004-05 44.81 2005-06 44.14 2006-07 45.14 2007-08 40.27 2008-09 46.14 2009-10 47.42 2010-11 45.62 2011-12 46.88 2012-13 54.31 2013-14 60.28 2014-15 60.28 2015-16 65.46 2016-17 67.09 Q1 2017-18 64.46 Source: Reserve Bank of India 57

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