At least there’s some cultural basis there. In Toronto, while there are some Gujarati places, the vast majority are either Punjabi or Bangladeshi (the latter tend to serve pan-Indian “greatest hits”), in which case the sugar is just a crowd-pleaser. My mother is Maharashtrian and she will put a bit of sugar in some dishes that involve goda masala (her eggplant, for example). Also in some tamarind preparations, to mellow the sourness.