Rajasthan, the largest (area-wise) state in India, is in the northwestern part of the subcontinent. It borders six major states in the northern, western, and central parts of India. Rajasthan is a natural corridor between the wealthy northern and the prosperous western states, making it an important trade and commerce centre.
The natural resources, policy incentives, strategic location and infrastructure in the state are favourably suited for investments in sectors such as cement, tourism, agriculture and allied industries, mineral and mineral processing industries.
The state has an agricultural economy with nine agro-climatic zones and various types of soil that help during the cultivation of crops.
At current prices, Rajasthan’s GSDP is projected to be Rs. 19,89,000 crore (US$ 232.88 billion) in FY26. Between FY16 and FY26, the state’s GSDP increased at a CAGR (in Rs.) of 11.31%.
The state is the leading producer of cement-grade limestone in India. Production of limestone stood at 79,236 thousand tonnes in 2023-24.
Bureau of Investment Promotion (BIP) is the nodal agency of the Government of Rajasthan that facilitates investment in various sectors in the state. Rajasthan State Industrial Development and Investment Corporation (RIICO) is the sole agency in the state that develops land for industrial growth.
As of August 2025, Rajasthan had a total installed power generation capacity of 56,494 MW, of which 9,040 MW was under the central utilities 8,890 MW under state utilities and 38,562 MW under the private sector.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investment (FDI) inflows in the state stood at Rs. 28,688 crore (US$ 3,267 million) between April 2000-June 2025.
Total merchandise exports from Rajasthan stood at Rs. 33,976 crore (US$ 3.86 billion) in FY26 (April-July 2025). Gems and Jewellery and Engineering Goods accounted for a majority share in the overall exports from the state.
Following is some of the major initiatives taken by the Government to promote Rajasthan as an investment destination:
- In March 2025, Union Minister for Road Transport & Highways, Mr. Nitin Gadkari approved a Rs. 1,237 crore (US$ 140.5 million) project to build a 134.86 km two-lane highway in Rajasthan’s Jaisalmer and Barmer districts, boosting connectivity, border security, and regional development.
- On October 23, 2025, the Union Cabinet approved the development of a new airport at Kota-Bundi in Rajasthan with an investment of Rs. 9,814 crore (US$ 1.12 billion). The project aims to enhance air connectivity in southern Rajasthan and support the region’s growing industrial, educational, and tourism sectors.
- Under state budget FY26
- Rs. 14,016 crore (US$ 1.64 billion) has been allocated for capital outlay on roads and bridges.
- Rs. 22,819 crore (US$ 2.67 billion) has been allocated as grants for non-revision of electricity tariffs.
- Rs. 3,592 crore (US$ 420.6 million) has been allocated as assistance to urban development authorities and town development boards.
- Rs. 29,363 crore (US$ 3.4 billion) has been allocated for primary education.
- Rs. 33,792 crore (US$ 3.96 billion) has been allocated for secondary education.
- Rs. 4,336 crore (US$ 507.7 million) has been allocated towards urban health services - allopathy.
- Rs. 3,586 crore (US$ 419.9 million) has been allocated towards rural health services - allopathy.
- Rs. 6,609 crore (US$ 774.8 million) has been allocated for crop husbandry and Rs. 3,618 crore (US$ 424.2 million) for animal husbandry.
- On July 12, 2024, the Rajasthan government allocated substantial funds in its 2024-25 budget for water supply projects, including Rs. 15,000 crore (US$ 1.80 billion) for tap connections in 2.5 million villages and Rs. 20,370 crore (US$ 2.44 billion) for six major drinking water projects under the Jal Jeevan Mission.
- On September 3, 2024, the Rajasthan government announced plans to develop 14 new industrial areas as part of its strategy to enhance the manufacturing sector, which contributes about 24% to the state's gross state domestic product. This initiative is aimed at ensuring the success of the upcoming investment summit, 'Rising Rajasthan,' scheduled for December in Jaipur.
- The State Government has given importance to supporting women-led startups through several kinds of incentives. The State has identified women-led enterprises as one owned and controlled by women having a minimum financial interest of 51% of capital and giving at least 51% of employment generated in the enterprise for women. Women-led startups are those with a woman as Founder or Co-Founder or CXO.
Note: ^Excluding Fuel, Atomic and Minor Minerals
