Gujarat: Focus on agriculture, MSME, unorganized sectors

GANDHINAGAR: A committee of experts headed by former Union finance secretary Hasmukh Adhia submitted an interim report to the Gujarat government and suggested that the focus should be on reviving agriculture and small business activity in the state after the Covid-19 pandemic and subsequent lockdown.
The expert advisory group (EAG) held a meeting with CM Vijay Rupani, deputy CM Nitin Patel and senior ministers and bureaucrats on Thursday, apprising them of the representations received by the committee on different aspects of reviving the state’s economy.
The EAG, in its report, has asked the state government to address the issue of huge rise in unemployment because of the pandemic and lockdown, “The EAG is said to have asked the government to give a major thrust to agriculture and allied activities, micro, small and medium enterprises (MSMEs) and the unorganized sectors, as these sectors have the potential to provide large scale employment,” a key state government source said.
The official added that the EAG has also expressed concern over the exodus of a very large workforce, who returned to their respective states, saying industries and the real estate will find it difficult to bounce back without the required work force. “The committee, in its report, also expressed concern over the lay-offs and retrenchments in the industries and services sector,” the official said.
The EAG is likely to submit its final report after two weeks, over which the state government is likely to announce key policy corrections.
The committee was mandated to study the sectoral and sub-sectoral economic losses in the state and suggest measures for sector-specific restructuring. In addition, the EAG was asked to review the state’s fiscal and budgetary situation and suggest corrective measures. The committee will also make recommendations on re-evaluation of the tax structure as well as suggest long-term and short-term revival plans.
The EAG, headed by Hasmukh Adhia, includes eminent experts from various fields like former professor of IIM-A, Ravindra Dholakia, financial expert Pradeep Shah, former IAS officer Kirit Shelat and others.