Industrial Development & Economic Growth in Rajasthan

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. Foodgrain 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 Apr-Dec 2017 reached 54.17 million tonnes, accounting for more than 20 per cent of India’s 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.

Some of the major initiatives taken by the government to promote Rajasthan as an investment destination are:

• As per state budget 2018-19, US$ 27.68 million was allocated for the tourism department.
• Under state budget 2018-19, an estimated outlay of US$ 692.59 million was made for agriculture in the state. Irrigation and flood control were allocated US$ 405.87 million. A Single Window Clearance System (SWCS) for investment approvals is operational in the state and the BIP was set up to focus on investments above US$ 2.2 million.
• The Rajasthan Industrial Infrastructure Corporation (RIICO) has been assigned the responsibility of setting up industrial areas in the state. The organisation also provides loans for small, medium and large scale projects.
• RIICO has set up 340 industrial areas by acquiring 84,202.57 acres of land. During 2016-17, 601 new industrial units commenced activity taking the total number of industrial units to 37,714 in Rajasthan.
• The Government of Rajasthan is promoting the development of several SEZs across the state for sectors such as gems and jewellery, handicrafts, IT, electronics, automotive/auto components and textiles.

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