The purpose of this paper is to highlight the impact of the growth of the Industrial Sector on the Goan Economy. It is widely believed that the root of development of any country lies in the strength of the backing provided by its industrial base. It is in keeping with this thought process that the Second Five Year Plan of India (the Nehru-Mahalanobis Model) and currently the Make in India Initiative attribute maximum importance to the setting up of Industries (either manufacturing oriented or intellectual based). Similarly, after the liberation of Goa, an urgent need was felt to improve the industrial capacity of the state. It is through the programmes of the Central and State Governments that Goa recorded success rates within a couple of decades. The demographic set up of the state too facilitated this fast-paced development within the state. Factors such as Literacy rate, Per capita income and HDI accompanied by low Birth and Death rates resulted in expansion of the GSDP of the state. The share of the Industrial Sector to GSDP increased from 20.80 in 1961-62 to 26.23 in 1981-82. Industrial activity in Goa received a boost during the period from 1993 to 2002 as a result of a special income tax status from the Government of India and a Sales Tax holiday from the Government of Goa. It is the culmination of all these programmes and factors that led to the establishment of the Goa Investment Policy of 2014. The vision of this programme is 'To be an inspirational 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.' Hence, the objectives of the following study are to establish the factors that contributed to growth of industries, impact of trends in development of the industries in Goa, contribution of MSMEs and large-scale enterprises to GSDP, and finally the implementation of the Goa Investment Policy of 2014.