The Kadamba dynasty ruled this tropical land nestled in the Ghats
from the 2nd century AD. It became part of the Hindu kingdom of
Vijaynagar after a brief stint under Muslim rule. In the 1400s
the Bahamani dynasty conquered Goa and established the first Old
Goa settlement.
 Goa was the first acquisition by the Portuguese in Asia who wanted a trading outpost for their spice trade. In
the initial the Portuguese and the local Hindus had an amicable
relationship and a Hindu governor was appointed after Goa was
conquered from the Muslims under Adil Shah. But with the arrival
of Jesuits, Franciscans and other religious orders in this eastern
capital of the Portuguese empire, the Inquisition began in 1540.
The golden age of Goa under the Portuguese was from 1575 to 1600.
Epidemics, loss of trade with the Vijaynagar kingdom and warfare
with the Marathas and the Dutch led to a steady decline. Increasing
 pressure was put on the Portuguese to give up Goa after India
won independence. And finally in 1961 as a result of nonviolent
demonstrations and Indian army action the Portuguese decamped.
Goa became a state in 1987. Its population is just over 1.3 million. It has amongst the highest per capita incomes in India,
has a better standard of infrastructure -- given its small size--
and a large proportion of urbanised population.
 In Panjim on the other
hand -- which today has a population of approximately 50,000 --
earliest settlements date back to early 12th century. The Portuguese
took it in 1510, though it was just a way-station, as the capital
was Goa Dourada upriver. Modern Panjim looks the way it does only
for the last decade, with a boom in real estate prices as small
industries move in and tourism takes off. While even till 1990-91
shops and business establishments used to close down for siesta
and it was impossible to get anything done between 1 and 4 pm,
today it bustles throughout the day and shops do stay open till
late evening.
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