Industrial Development & Economic Growth in Rajasthan

Latest update: October, 2018

Economic Snapshot
Per capita Income


October, 2018

Rajasthan, the largest (area-wise) state in India, is located 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 in Rajasthan is estimated to have reached 22.58 million tonnes in 2017-18.

Between 2011-12 and 2017-18, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 11.60 per cent (in rupee terms) to US$ 130.37 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.45 per cent (in rupee terms) to US$ 117.53 billion.

The state is the leading producer of cement grade limestone in India. Production of limestone during 2017-18* reached 67.03 million tonnes, accounting for 22.05 per cent of India’s total limestone production.

Bureau of Investment Promotion (BIP) is a nodal agency of the Government of Rajasthan that facilitates investments 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.

In August 2018, the state government inaugurated Bhamashah Techno Hub, India’s biggest incubation centre, in Jaipur. The state-of-the-art facility is spread over 100,000 sq ft and is expected to house over 700 start-ups. Start-ups operating from the centre will receive various facilities including mentoring, funding, logistics and office space.

Key sector performance stood as follows:

  • Total merchandise exports from Rajasthan were US$ 6.95 billion in FY18.
  • Production of cereals was estimated at 1.91 million tonnes, while that of pulses at 3.53 million tonnes during the 2017-18.
  • Cotton production in the state is estimated at 1.73 million bales in 2017-18.
  • In 2017(P), 45.92 million domestic tourists and 1.61 million foreign tourists visited Rajasthan.
  • Value of all minerals produced during 2017-18* in the state stood at Rs 9,836.99 crore (US$ 1.53 billion).

Note: P – Provisional, *up to February 2018

Rajasthan State Presentation

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Rajasthan Map