The Minister for Overseas Indians Affairs, Vayalar
Ravi, recently informed the Lok Sabha (the lower house of the Indian
parliament), that the global recession had no impact on Foreign Direct
Investments (FDI) from Indians abroad as it has registered a rise in
the current fiscal.
Informing the lawmakers about investment figures from the states, Ravi
said there had been no decline in investment due to global recession
during 2008 as compared to 2007. Non-resident Indians (NRIs), Persons
of Indian Origin (PIO) and Overseas Corporate Bodies (OCB) accounted
for FDIs and Foreign Technology Cases (FTC) worth Rs 700 m during January
to September 2008 in comparison to Rs 658 m for the period January to
December 2007. Interestingly, Goa figured as the highest investment
attracting state receiving Rs300m from the above mentioned categories
of investors during 2008. West Bengal came in second among all Indian
states, recording Rs203m in Foreign Direct Investments (FDIs). Goa was
liberated from Portuguese rule in 1961 and went on to become the 25th
state in the Indian Union in 1987.
People worldwide know Goa as a tourists' paradise blessed by silvery
and pristine beaches, historical temples and churches and a place of
peace-loving people who cherish communal harmony. Very few would, however,
fancy that Goa is today turning into a fast developing economy. The
state has been ranked among the leading states on the developmental
scale by national magazines. Goa's economy is growing at a faster rate
than that of the country as a whole. The Goan economy traditionally
hinged on mining, Gulf remunerations and now on service sector mainly
tourism.
It was ranked the best placed state by the Eleventh Finance Commission
for its infrastructure, ranked on top for the best quality of life by
National Commission on Population based on the 12 Indicators, placed
in top three states in India for high rate of literacy and low rate
of infant mortality and declared the second fastest growing state by
CRISIL. Goa has been on the lookout to attract investments armed with
a pro-active industrial policy, which identified biotech, food processing,
agro-based industries, IT and IT-enabled services and entertainment
sector as core areas of focus. After the State was declared a permanent
venue for prestigious International Film Festival of India (IFFI), the
entertainment industry led by state-owned Entertainment Society of Goa
(ESG) is bringing entertainment to the forefront as a significant revenue
generating sector.
At present, real estate seems to be the state's top draw when in comes
to investment by NRIs and PIOs. The new phase of real estate development
in Goa has encouraged a multitude of investors to put sums of money.
According to real estate experts, the prospects of real estate investment
in Goa are bright. The strategic location of Goa and the availability
land at good locations has attracted real estate developers. In recent
years, Goa has also attracted huge investment for holiday homes by non-resident
Goans (NRGs), NRIs and domestic buyers. According to The Times of India,
real estate prices had boomeranged by 30 percent in 2004, and had been
steadily increasing. Land value in Panaji doubled in the last one year
while other places across the state have seen a steady 20 percent increase.
Nearly one in every four buyers in Goa were second home seekers looking
for a good investment option. Real estate experts say that most property
buyers in Goa are high-end clients looking for a villa ranging between
Rs8m to Rs10m. NRIs and persons of Indian origin have particularly evinced
interest in buying property here and constitute 15 per cent of the demand.
