Introduction
Rajasthan, the largest (area-wise) state in India, is in the northwest part of the subcontinent. It is surrounded on the north and the northeast by Punjab, Haryana, and Uttar Pradesh, on the east and southeast by Uttar Pradesh and Madhya Pradesh, and on the southwest by Gujarat.
It is among the largest mineral-producing states in India. Around 81 varieties of minerals are available in the state and 57 minerals are produced on a commercial scale in the state. It also contributes significantly to the production of dimensional and decorative stones, such as marble, sandstone, granite etc.
The Gross State Domestic Product (GSDP) of Rajasthan for 2023-24 (at current prices) is projected to be Rs. 15.7 lakh crore (US$ 188.32 billion), amounting to growth of 11.5% over 2022-23.
Between 2015-16 and 2023-24, the state’s GSDP increased at a CAGR (in Rs.) of 11 %. At a CAGR (in Rs.) of 6.13% between 2018-19 and 2022-23, the tertiary sector has been the fastest-growing sector and the largest contributor to Rajasthan’s economy in 2022-23, with a 43.74% share in the state’s GSVA.
The growth was driven by storage, communication & services related to broadcasting, financial services and public administration. According to the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investment (FDI) inflows in the state stood at US$ 2,344 million between October 2019-March 2024.
Rajasthan Tourism
The state is one of the leading tourist destinations in India. Historic palaces, especially those in Jaipur and Udaipur, offer opportunities to expand the luxury tourism segment, with an increasing number of tourists visiting wildlife sanctuaries and desert locations. 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. Home 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. The Rajasthan cabinet approved the Rajasthan Film Tourism Promotion Policy 2022 with the objective of promoting film production activities in the state..
Agriculture in Rajasthan
The state has an agricultural economy with nine agro-climatic zones and various types of soil that help during the cultivation of crops. As part of the state budget 2023-24, Fasal Beema Yojana has been allocated Rs. 1,400 crore (US$ 167.93 million). 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). The following are the stats of agricultural production (in lakh tonnes) in the state during 2022-23 - 1) Cereals: 206.57, 2) Pulses: 47.42, 3) Oil Seeds: 99.78, 4) Sugarcane: 2.18 and 5) Cotton (lint): 25.53.
Industries in Rajasthan
The state is the leading producer of cement-grade limestone in India. Production of limestone reached 87,679 (thousand tonnes) during 2021-22. The state has about 26% share in proven limestone reserves in the country. In May 2024, JSW Cement announced to invest Rs. 3,000 crore (US$ 359.84 million) crore on building an integrated manufacturing facility at Nagaur in Rajasthan. Shree Cement, the second largest cement-maker in India, in December 2023, commissioned a new klin at its integrated production facility in Nawalgarh, Rajasthan. The plant, set up at Rs. 3,500 crore (US$ 419.82 million) can produce 3.5 million tonnes of cement per annum.
Recent Developments in Key Sectors
- As of March 2024, Rajasthan had a total installed power generation capacity of 43,417.49 MW, of which 3,761.10 MW was under the central utilities 8,890.35 MW under state utilities and 30,766.04 MW under private sector.
- Under the state budget 2023-24, as part of the Chief Minister’s Free Electricity Scheme, 100 units of free electricity will be provided, up from 50 units earlier.
- As of March 2024, Rajasthan had 66.33 million wireless and 1.13 million wireline subscribers.
- As part of the state budget 2023-24, Rs. 4,122 crore (US$ 494.42 million) has been allocated for grants in aid to Nagar Palika.
- As part of the state budget 2023-24, a Youth Policy will be formulated under which a Youth Development and Welfare Fund will be set up to provide for education, skill development, and employment. Rs. 14,691 crore (US$ 1.76 billion) has been allocated for Samagra Shiksha Abhiyan.
- The state is the leading producer of cement-grade limestone in India. Production of limestone reached 87,679 (thousand tonnes) during 2021-22
- Tourism is one of the key sectors in the state. The state is the leading producer of cement-grade limestone in India. Production of limestone reached 87,679 (thousand tonnes) during 2021-22.
- In July 2022, NTPC Renewable Energy Limited signed an MOU with the Government of Rajasthan for the development of 10 GW ultra mega renewable energy power parks.
- As of July 2022, the state was home to six notified Special Economic Zone (SEZs)
- In July 2022, the government approved the construction of the Taranga Hill-Ambaji-Abu Road new rail line to provide connectivity and improve mobility.
- The Rajasthan cabinet approved the Rajasthan Film Tourism Promotion Policy 2022 with the objective of promoting film production activities in the state.
- Total merchandise exports from Rajasthan stood at US$ 10.11 billion in FY24.
- Engineering Goods and Gems and Jewellery accounted for a majority share in the overall exports from the state.
- In FY24, the total exports of Engineering Goods from Rajasthan stood at US$ 3.41 billion.
- 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.
- In February 2021, value of all minerals produced^ in the state stood at Rs.1,479.95 crore (US$ 202.45 million).
- The policy environment has been favourable for the establishment of industrial units. A single window clearance system (SWCS) for investment approvals is operational in the state and the Bureau of Investment Promotion (BIP) was set up to focus on investment above US$ 2.2 million. Rajasthan stands sixth among Indian states in rankings based on ease of doing business and reforms implementation as per a study by the World Bank and KPMG.
Note: ^Excluding Fuel, Atomic and Minor Minerals
FACTFILE
Capital
JaipurGeographical Area (sq km)
342,239State Language
Hindi, Marwari, Jaipuri, Mewari, Malvi and EnglishLiteracy Rate
66.1 per centKey Industries:
Cement
Tourism
Textiles
IT and ITeS
Ceramics
Handicrafts
Chemical
Marble
Steel
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