GANDHINAGAR: To boost the state's economy by strengthening the services sector, the Gujarat government has finalized plans to set up a new services sector commissionerate like the existing industries and MSME commissionerates.
The services sector is the largest and fastest growing sector in the country, with the highest labour productivity. However, the sector has not produced the number or quality of jobs needed. Also, there is no policy leading to inclusive growth even as multiple and uncoordinated governing bodies adversely affect the growth of this sector.
To tackle all these issues, the government deemed it necessary to set up a services sector commissionerate soon. Under this, a commissioner will be appointed to oversee this sector. The government plans to announce a new policy for the sector, offering financial and other benefits at par with those being offered to MSMEs and other industries. The aim is to make this sector more profitable and increase employment opportunities.
The government decided to set up the commissionerate with the manufacturing sector becoming less lucrative after the introduction of the GST regime.
The government had expressed its intention to establish the new commissionerate even before the Hasmukh Adhia committee presented its report on "strategy for 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.
A key source close to the development said the government expressed its interest in setting up a services sector commissionerate during the committee's consultations with various departments. "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.
In his report, Adhia, the former finance secretary of India, said, "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 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." In the report, the committee suggested several sectorwise strategies and sub-strategies to achieve this reorientation.
