During the peak recession, stimulus packages and bail outs were the norm across the US and Europe. Major corporate icons like General Motors and Citibank were rescued with these measures. Now these bail out packages have gone a level higher than just potentially sick companies. They are being used to rescue a country which is in a serious crisis. Greece is the first such example where the country has agreed to a 110 billion Euro bailout package organized by the IMF and its eurozone partners. The time has come where institutional or governmental intervention may be used often to stabilize an economy or company which may be spinning out of control.

In India, the stock markets indexes are moving up. For investors who entered the market before the crash last year, they may be just recouping sharp losses that they experienced. For many others it is a time to shed their past diffidence and enter into the market, but a bit cautiously. When a market is in decline most of us take a serious view of the situation. Yet when a market swings back, not many of us follow the extent of the swing very closely. Sometimes the swing is so sharp that the market becomes overvalued. It is best that in the months ahead we think through this question frequently.

The state budget is an important event. While the central budget gets all the media attention, the state budget affects the citizenry in numerous ways. Increases in VAT, which is a state subject raises prices across the board. Increases in state excise on liquor affects the industry especially the tourism industry. It also creates a situation for liquor manufacturers to find ways to avoid paying taxes and consequently the Government loses on revenue. Industry & Trade needs to be involved closely in a dialogue with the Government before the state budget is announced. In 2009 three major tax measures which were announced did not see the light of day, for example the Goa state tax on professionals through which the government had intended to collect Rs. 65 crores; the entry on vehicles which was supposed to generate Rs. 20 crores and most important, the land replenishment and environment charge from the mining industry from which the Government proposed to collect Rs. 375 crores. A discussion with the GCCI on the feasibility of these steps would have helped.

To initiate a more meaningful dialogue the GCCI departed from post budget memorandums and organized a discussion with the Government on April 27th on the state budget. The Goa Chamber has usually communicated to the Government through pre and post budget memorandums. However placing our views in writing may not have the same impact as verbal communication. Through a discussion, Government can understand industry sentiments and feelings on an issue and react to it appropriately. We had Chairmen and members of our committees presenting our viewpoint to the Chief Minister and senior Government Officers present. The presentations they made at this session was representative of a large cross section of businessmen and the Chief Minister and senior officers had to respond spontaneously.

Job creation in Goa has not kept pace with the number of persons entering the job market. Education has equipped our graduates to take up a variety of work. For many of them, a job is the best way to start their careers but not always the best thing to do in the long run. Many of them have a talent for starting their own businesses and they should not ignore this inner drive if they have it. The role the GCCI should play is to mentor and guide these future businessmen through the road ahead . Being an entrepreneur allows one to exercise initiative and creativity of the highest degree. Entrepreneurship is the need of the hour. Yet before an entrepreneur starts his project he has to have an idea which is innovative and preferably unique . This issue has an interesting article on “Where do great ideas come from?”.

The GCCI Annual General Meeting takes place on June 19th at Hotel Cidade de Goa, Dona Paula at 5p.m. I hope all of you will attend, and participate in the proceedings.

Cesar Menezes
(President - GCCI)