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Industrial Development & Economic Growth in Rajasthan

Last updated on Aug, 31 2021

Economic Snapshot
Per capita Income


Rajasthan, the largest (area-wise) state in India, is in the north-western 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. Food grain production is estimated to have reached 22.80 million tonnes in 2018-19.

Rajasthan’s Gross State Domestic Product (GSDP) increased at a CAGR (in Rs.) of 7.05% between 2015-16 and 2020-21. 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.

The state is the leading producer of cement-grade limestone in India. Production of limestone reached 31.04 million tonnes in April-September 2020.

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 November 2019, the state was home to three operational SEZs, four notified SEZs, one SEZ with an in-principle approval, and five SEZs with formal approvals.

As of April 2021, Rajasthan had a total installed power-generation capacity of 26,084.92 MW, of which 3,836.62 MW was under the central sector, 8,230.65 MW (state utilities) and 14,017.65 MW (private sector). Of the total installed power-generation capacity, 13,344.49 MW was contributed by thermal, 1,939.19 MW by hydro and 10,244.50 MW by renewable energy.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Direct Investment (FDI) inflow in the state stood at US$ 461.40 million between October 2019 and March 2021.

Key sector performance stood as follows:

  • Total merchandise exports from Rajasthan stood at US$ 6.63 billion in FY20 and US$ 6.65 billion in FY21. 
  • DPIIT recognized 800 start-ups as of February 01, 2020.
  • Tourism is one of the key sectors in the state. In 2019, 52.22 million domestic tourists and 1.60 million foreign tourists visited Rajasthan.
  • Mining and Mineral Processing is another key sector for the state. Export of Zinc and Products made of Zinc reached US$ 273.34 million in FY21. 
  • In September 2020, value of all minerals produced^ in the state stood at Rs. 911.45 crore (US$ 122.87 million).

Note: ^Excluding Fuel, Atomic and Minor Minerals

Rajasthan State Presentation

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Rajasthan Map