@ 8.9 pc, eco survey paints gloomy picture for Goa’s domestic product

IN 2016-17
* 18.92% growth
2017-18 ESTIMATE
* Decline to 8.9%

LOOKING UP & DOWN >>
* Agriculture forestry and fishing rises from 5.18% in 2011-12 to 7.59% in 2016-17
* Mining & quarrying sees sharp fall from 16.33% in 2011-12 to just 1.67% in 2016-17
* Real-estate, ownership of dwelling down from 11.03% in 2013-14 to 8.71% in 2016-17
* Manufacturing sees a gradual growth from 41.35% in 2011-12 to 45.12% in 2016-17
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PANAJI: The growth rate in Goa’s Gross State Domestic Product (GSDP) at current prices is expected to decline to 8.9% in 2017-18 compared to 18.92% growth reported in 2016-17.
As per the just tabled Economic Survey in the assembly, the advanced estimate for GSDP of Goa has been pegged at Rs 70,267 crore for 2017-18 at current prices. At this level, the GSDP in 2017-18 is likely to be 8.9% more than Rs 64,543 crore GSDP in 2016-17.
Although, GSDP is expected to grow in 2017-18, but the growth rate is likely to come down. As per the Economic Survey, there was an 18.92% growth in the state’s GSDP at current prices in 2016-17. Compared to that growth, an expected growth of 8.9% in 2017-18 is much lower.
The anticipated Gross Domestic Product (GDP) at current prices of India is Rs 166.28 lakh crore in 2017-18, which shows a yearly growth of 9.5%. This shows that Goa’s GSDP is likely to grow at a lower rate than country’s GDP in 2017-18.
Interestingly, the share of agriculture forestry and fishing in state’s GSDP at current prices has risen from 5.18% in 2011-12 to 7.59% in 2016-17. This was mainly led by jump in fishing and aquaculture’s share in GSDP from 1.69% in 2011-12 to 3.09% in 2016-17.
The share of mining and quarrying in state’s GSDP has seen a sharp fall from 16.33% in 2011-12 to just 1.67% in 2016-17.
Slowdown in real-estate sector over the recent years is evident in the data released by the Economic Survey. The share of real-estate, ownership of dwelling & professional services in Goa’s GSDP has come down from 11.03% in 2013-14 to 8.71% in 2016-17.
Another key sector contributing to the state is manufacturing. The share of manufacturing has seen a gradual growth in state’s GSDP from 41.35% in 2011-12 to 45.12% in 2016-17.
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Banks achieved a mere
60% of credit target

PANAJI: The recently tabled Economic Survey has highlighted that banks achieved a mere 59.98% of their target for credit for the quarter ending September 30, 2017. All banks managed to lend just Rs 2,134.9 crore as compared to a target of Rs 3,559 crore in September 2017 quarter.
The banks reported worst performance in export credit segment. As opposed to a target of Rs 274.88 crore in September quarter, banks were able to lend just Rs 8.18 crore, which was under 3% of the target.
Similarly, banks struggled in renewable energy space, wherein they managed to achieve just 3.68% of the target. Banks had targeted to extend Rs 3.8 crore credit to renewable energy sector in September 2017 quarter. As against that, they managed to lend a mere Rs 0.14 crore.
For agriculture sector overall, banks managed to achieve 73.5% of the credit target they had set out for themselves in September 2017 quarter. All banks, put together, extended Rs 371.11 crore of credit to agriculture sector as compared to Rs 504.88 crore target.
In micro, small and medium enterprises (MSMEs), banks managed to achieve 67.69% of their credit target for September 2017 quarter by extending a credit of Rs 1,247.5 crore as compared to Rs 1,842.8 crore target.
In housing sector, banks managed to extend Rs 422.9 crore credit in September 2017 quarter thereby achieving 65.18% of Rs 648.8 crore of target lending.
The Economic Survey also highlighted that the credit deposit ratio of all banks stood at just 29.58% in Goa on September 30, which is way lower than the benchmark of 40%. In fact in many other states of India, banks manage to achieve a credit deposit ratio of more than 70%.
Credit-deposit ratio is arrived at by diving all the loans given by all the deposits. A low credit-deposit ratio shows that the banks are struggling to provide loans.