How Goa’s Small Scale Industries are Driving Rural Employment

Description

In the grand narratives of India’s economic growth — dominated by metros, IT hubs, and industrial corridors — the heartbeat of the nation often goes unheard. That heartbeat lies not in the skyscrapers of Gurgaon or the software parks of Bengaluru, but in the villages, panchayats, and rural belts where small-scale industries quietly power livelihoods, dignity, and dreams.

Among these hidden engines of progress, Goa’s small scale industries (SSIs) stand out. Though better known for its beaches and tourism, Goa has a vibrant, resilient, and growing base of rural enterprises — from handicrafts to agro-based processing, coir products to packaging units, and beyond. These industries are not just creating jobs; they are laying the foundation for inclusive, local, and sustainable development.

At the heart of this progress is the principle that real growth must come from the grassroots. If India is to become an economic superpower, it must not neglect its villages — and if the villages are to thrive, small-scale industries must lead the way.

I. Small Scale Industries: The Lifeline of India’s Economy

1.1 What are Small Scale Industries?

Small Scale Industries (SSIs), also known as Micro, Small and Medium Enterprises (MSMEs), are businesses with:

Limited investment in plant and machinery.

Local resource utilization.

Labor-intensive production.

Often family-run or community-driven operations.

They include:

Handicrafts and cottage industries.

Agro-processing units.

Coir, jute, bamboo, and wood-based units.

Garments and apparel manufacturing.

Bakery and food processing.

Service-based units like packaging, printing, repairs, etc.

In Goa, SSIs thrive in rural pockets like Canacona, Pernem, Bicholim, Ponda, and Sattari — offering alternatives to youth who might otherwise migrate to cities.

1.2 Contribution to the Economy

Across India:

MSMEs contribute about 30% to the GDP.

They employ over 110 million people.

Account for 48% of the country’s exports.

In Goa, over 8,000 registered small industries operate with an estimated employment potential of 60,000+, most of whom are in semi-urban or rural areas.

They are not just supporting rural India — they are building it.

II. Why Growth Must Begin in the Villages

2.1 Rural India is Not a Burden — It’s an Opportunity

Nearly 65% of India’s population lives in rural areas. Ignoring them would mean ignoring a massive talent pool, resource base, and potential market.

When industries develop near homes, it reduces:

Urban migration.

Housing pressure in cities.

Transportation and logistics costs.

Environmental stress due to over-urbanization.

More importantly, it ensures that young people don’t have to leave their families and traditions behind to earn a living.

2.2 Local Production for Local Consumption

SSIs encourage circular economies:

Farmers process their own produce (e.g., cashew, coconut, spices).

Local goods are sold in local markets.

Revenue stays within the village.

This is real Atmanirbhar Bharat — not just a slogan, but a system where villages make, sell, and consume what they produce.

III. Goa’s Rural Enterprises: Stories of Change

3.1 Agro-Based Ventures

Goa’s small-scale agro-processing units process:

Cashew nuts and cashew feni.

Jackfruit-based snacks.

Spices like black pepper, turmeric, kokum.

Coconut oil, vinegar, jaggery.

Villagers are forming cooperatives, taking loans via schemes like PMEGP (Prime Minister’s Employment Generation Programme), and creating localized employment in areas with minimal infrastructure.

3.2 Handicrafts and Local Artistry

Goa’s rich tradition in:

Crochet lace

Terracotta

Coconut shell crafts

Azulejos tiles

...has found a revival through SSIs supported by bodies like the Goa Handicrafts, Rural and Small Scale Industries Development Corporation (GHRSSIDC). They provide marketing platforms, fairs, and even e-commerce support.

These industries often employ older artisans and train younger ones, ensuring the continuity of tradition and livelihood.

3.3 Bakery and Food Enterprises

Rural bakeries are one of Goa’s charming yet powerful micro-industries. Many small units produce local bread (poi) and snacks that are distributed within a radius of 20–30 km. These businesses are often family-run, employ local youth, and source ingredients from within the taluka.

IV. The Magic of Jugaad: India’s Innovation Engine

India’s innovation doesn’t always happen in labs — it often happens under a tin roof, with limited tools but limitless creativity. This is Jugaad, the Indian art of frugal innovation.

Rural youth, especially in Goa, have:

Turned coconut waste into coir-based handicrafts.

Modified machines to increase productivity.

Used WhatsApp and Instagram to sell crafts and baked goods.

Created makeshift delivery systems using cycles and scooters.

The best brains of India — those with creativity, resourcefulness, and resilience — are not always in IITs. They are in the villages, solving real problems every day.

V. Senior Citizens in Business: Guardians of Wisdom

5.1 A Wealth of Experience

Many rural industries are decades old, sustained by senior artisans, bakers, blacksmiths, farmers, and entrepreneurs. They have:

Deep market knowledge.

Supplier connections.

Generational craftsmanship skills.

But in many cases, these businesses stop when the owner retires or passes away.

5.2 Embracing the Younger Generation

To sustain and grow, senior citizens must open the doors to youth.

Train them.

Let them take decisions.

Encourage new ideas.

Allow modern branding, tech integration, and expansion.

Instead of viewing younger generations as “inexperienced,” see them as allies. Let traditional knowledge combine with digital skills to build robust, future-ready enterprises.

This cross-generational handshake can build sustainable family businesses that survive for decades.

VI. Youth Must Not Wait — They Must Build

6.1 The Job Market is Saturated

Each year, lakhs of graduates seek jobs — many without success. The formal sector cannot absorb everyone. Instead of waiting for employment, youth must create it.

SSIs are perfect for this:

Require low capital investment.

Are easy to start with help from schemes like Mudra Loans or PMEGP.

Have massive demand, especially for eco-friendly and local products.

6.2 Digital Natives in Rural Enterprise

Today’s youth know how to:

Make reels and edit videos.

Use UPI, Paytm, and Shopify.

Advertise on Instagram.

Track orders via mobile apps.

If this energy is directed toward rural entrepreneurship, a new generation of “craftpreneurs,” “foodpreneurs,” and “farmpreneurs” can emerge.

Goa has already seen this trend. During the pandemic, several youth-led ventures emerged selling:

Homemade pickles and jams.

Hand-stitched masks and eco-bags.

Local art via Instagram shops.

This is just the beginning.

VII. Government and Institutional Support in Goa

7.1 GHRSSIDC and Industrial Estates

The Goa Handicrafts, Rural and Small Scale Industries Development Corporation has:

Created craft centers.

Offered skill development training.

Marketed Goan products via fairs and exhibitions.

Promoted artisan products online and offline.

Goa’s Industrial Estates (at places like Verna, Kundaim, Honda, Canacona) provide infrastructure for micro and small businesses to scale their operations affordably.

7.2 Youth Schemes and Support

Chief Minister's Rojgar Yojana (CMRY): Provides finance to educated unemployed youth.

Start-Up India and Stand-Up India: Focused on innovation and inclusion.

Goa Khadi and Village Industries Board: Supports traditional and rural industries.

Yet, access to these schemes requires awareness, guidance, and handholding, which must be enhanced through panchayats, NGOs, and digital campaigns.

VIII. Way Forward: Building a Stronger Rural Industry Ecosystem

For Senior Entrepreneurs:

Identify and mentor youth from the village.

Document traditional knowledge.

Collaborate with government schemes to scale.

For Youth:

Start small, scale smart.

Leverage digital tools.

Think local but act global — there’s a market for everything handmade and sustainable.