Gujarat Might Soon Have Commissionerate For Services

| Updated: May 28, 2022 4:38 pm

The Gujarat government has developed plans to create a new commissionerate for the services sector to help boost the state’s economy. This commissionerate will be similar to the existing industries and MSMEs commissionerate.

The country’s largest and fastest-growing industry, with the highest labour productivity, is the services sector. However, the sector has failed to create the necessary number or quality of jobs. Furthermore, despite various and uncoordinated governing authorities negatively impacting this sector’s growth, no policy leads to inclusive growth.

The government had expressed its intention to establish the new commissioner even before the Hasmukh Adhia committee presented its report on the “strategy for the government of Gujarat to enable India to become a $5 trillion economy” to achieve a GSDP of Rs 38.64 lakh crore ($500 billion) by March 2027.

During the committee’s meetings with several agencies, a senior source close to the matter stated the government indicated an interest in establishing a services sector commissioner. “The Adhia committee also mentioned the need for a services industry commissionerate to boost the state economy. The government will shortly hold discussions with the industry to understand the needs of the services sector and the incentives that can be offered,” the source said.

Adhia, the former finance secretary of India, stated in his report that the main growth driver of Gujarat has been the manufacturing sector so far. This sector contributes 30% to the Gross State Domestic Product (GSDP), which is the highest in the country. “If we include the energy and transport sector, the share is 48.4% in FY 20-21. However, the share of the services sector in Gujarat’s GSDP is 32.4% in FY 20-21 as compared to the share of services sector at 54% in India’s GDP.” The committee recommended many sector strategies and sub-plans to achieve this reorientation in their report.

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