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 reached 87,679 (thousand tonnes) during 2021-22
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 July 2022, the state was home to six notified Special Economic Zone (SEZs).
As of Feb 2025, Rajasthan had a total installed power generation capacity of 50,536.71 MW, of which 4,516.23 MW was under the central utilities 8,890.35 MW under state utilities and 37,130.13 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. 20,440 crore (US$ 2,628 million) between October 2019- Dec 2024.
Total merchandise exports from Rajasthan stood at Rs. 88,399 crore (US$ 10.35 billion) in FY25 (Until February). Engineering Goods and Gems and Jewellery 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:
- 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.
- Home & Cooperation Minister Mr. Amit Shah laid the foundation stone and performed Bhoomi Pujan of Shri Tanot Mandir Complex Project under Border Tourism Development Programme in Jaisalmer in September 2022.
- In August 2022, Mr. Narendra Singh Tomar, Minister of Agriculture and Farmers Welfare inaugurated four new facilities at the Central Arid Zone Research Institute (CAZRI), which has been rendering excellent services for more than 60 years under the Indian Council of Agricultural Research (ICAR).
- In July 2022, NTPC Renewable Energy Limited singed an MOU with Government of Rajasthan for development of 10 GW ultra mega renewable energy power parks.
- Tourism is one of the key sectors in the state. According to the Rajasthan Tourism Department, the state witnessed a remarkable increase in domestic tourism, with over 17.90 crore tourists visiting the desert state in 2023.
- The Rajasthan cabinet approved the Rajasthan Film Tourism Promotion Policy 2022 with the objective of promoting film production activities in the state.
- Mining and Mineral Processing is another key sector for the state. Export of Zinc and Products made of Zinc reached US$ 367.67 million in FY22.
Note: ^Excluding Fuel, Atomic and Minor Minerals
