Rajasthan is the largest producer of crude oil in India, with production of 5.88 million metric tonnes in FY22.
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.
The state has an agricultural economy with nine agro-climatic zones and various types of soil that help during the cultivation of crops. 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 production of dimensional and decorative stones, such as marble, sandstone, and granite etc.
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 increasing number of tourists visiting wildlife sanctuaries and desert locations.
Between 2015-16 and 2021-22, the state’s GSDP increased at a CAGR (in Rs.) of 10.07%. At a CAGR (in Rs.) of 10.86% between 2011-12 and 2020-21, the tertiary sector has been the fastest-growing sector and the largest contributor to Rajasthan’s economy in 2020-21, with a 45.44% share in the state’s GSVA. The growth was driven by storage, communication & services related to broadcasting, financial services and public administration.
In 2020, 40 investment intentions were filed in the state with total investment of Rs. 12,698 crore (US$ 1.71 billion). As of February 2020, the state was home to three operational Special Economic Zone (SEZs), four notified SEZs, one SEZ with an in-principle approval and five SEZs with formal approvals.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investment (FDI) inflows in the state stood at US$ 965.43 million between October 2019-December 2021.
The policy environment has been favorable 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.
In FY22 (until February 2022), the total exports of plywood & allied products from Rajasthan stood at US$ 625.32 million (7.24%).
Note *Excluding Fuel, Atomic and Minor Minerals
Rays Experts commissioned six solar parks, with a combined power capacity of 600 megawatt (MW) in Rajasthan with an investment of Rs 3,000 crore (US$ 409.86 million). The company aims to reach the 1,000 MW installation milestone by the end of 2021.