Former fin secy Hasmukh Adhia to head Gujarat economic revival panel

Committee will assess sectoral and sub-sectoral losses, may also go for fiscal restructuring post Covid-19

The Gujarat government on Wednesday announced the constitution of a committee to deliberate on economic revival measures including fiscal restructuring under the post-Covid-19 pandemic scenario and provide comprehensive suggestions.

Comprising experts from diverse economic fields, the six-member committee will be headed by former finance secretary to Government of India Hasmukh Adhia, along with former IIM Ahmedabad faculty member Ravindra Dholakia, senior tax consultant  Mukesh Patel, financial expert  Pradeep Shah, former bureaucrat Kirit Shelat and Gujarat Industrial Development Corporation (GIDC) vice chairman and managing director M Thennarasan of Government of Gujarat.

The committee headed by Adhia will submit a comprehensive action plan with necessary inputs within one month and an interim report will be submitted within two weeks amid the economic impact on Gujarat of the pandemic.

While the state government had taken several welfare measures in the areas of food security, healthcare and sector specific activities, Covid-19 has affected the state and its economy to a large extent. On one hand the demand and supply chain have been crippled and the informal sector and the MSMEs have taken a major blow. On the other hand, Gujarat's large migrant workers have been compelled by the pandemic to return to their respective home states. 

The disruption caused by Covid-19 has affected an industrially developed state like Gujarat, which has in turn affected the nation too.

With this in mind, the committee will assess sectoral and sub-sectoral losses and provide necessary measures for revival. The committee will also review the fiscal status and budgetary position of Gujarat and provide suitable suggestions for improvement. This will include a revision of the fiscal deficit estimate in the post Covid-19 scenario.

In addition, the committee will analyse the availability of labour and provide necessary recommendations to improve labour availability in the state considering a large scale movement of migrant workers to their respective home states amid the pandemic. 

Further, the committee will devise a strategy to create an ambient environment to attract foreign companies looking to relocate their base from other countries. It will also provide a comprehensive action plan (immediate, medium- and long-term) for economic and fiscal revival, the state government stated on Wednesday.