A year after announcement, Gujarat’s services commissionerate remains on paper

Ahmedabad: It has been a year since the Gujarat govt announced in the budget for 2025-26 that a service commissionerate will be formed on the lines of the industries commissionerate, but there has been no progress on the proposal. The share of the service sector is almost one-third of Gujarat's gross state domestic product (GSDP).In his 2025-26 budget speech, finance minister Kanu Desai announced that an office of the commissioner of services will be formed in the state to provide an impetus to the services sector. The commissionerate was to function as a focal point for providing various incentives to the sector.
Top officials in the state govt admitted that there was no gazette notification yet for the formation of the services commissionerate. "The industries and mines department is yet to initiate any action, such as formation of the commissionerate, appointment of staff, and implementing schemes for units in the services sector," a source said.Notably, the subject was discussed at length at the 2024 chintan shibir, the annual brainstorming session of the state govt, where it was agreed that it was necessary to provide a boost to the services sector by having a dedicated commissionerate to boost economic activity and employment for the sector.According to sources in the govt, a proposal for forming a new services commissionerate was under consideration since the Covid-19 pandemic, as the services sector is a key employment generator. The sector, however, receives fewer incentives compared to the manufacturing sector.It may be stated that prior to the 2025-26 budget, when the govt announced its intention of forming the new services commissionerate, a proposal by the industries and mines department said that all organised and unorganised service activities which are outside the scope of incentives will be covered under the new commissionerate. The Hasmukh Adhia-led committee, which was tasked to draw up an economic revival plan for the state after the pandemic, also recommended that the services sector be given a boost.The share of the services sector in Gujarat's gross state domestic product (GSDP) is 32.4%, and the state govt aims to increase the sector's contribution to the GSDP to the national average of 54%. Get the latest lifestyle updates on Times of India, along with Women's day wishes, messages and quotes !