Economy of Rajasthan

Rajasthan has the eighth largest economy with a Net State Domestic Product (NSDP) of over US$ 11.5 billion. Over the last ten years from 1994 to 2003, the state of Rajasthan underwent growth at a Compounded Average Growth Rate (CAGR) of 6% increasing from US$ 6.4 billion to US$ 11.5 billion.

In the years 1995-96 and 2001-02, the industrial sector of the state underwent a growth rate of 6.9% per annum. The growth rate of the service sector was 7.4 %.

The main economy of Rajasthan is agrarian based. Agriculture is the leading economy of the state accounting for 22.5 per cent. The total cultivated area of the state encompasses about 20 million hectares and out of this only 20% of the land is irrigated.

The principal crops Barley, Wheat, Gram, Pulses, Oil Seeds, Bajra, Pulses, Jowar, Maize Ground Nuts, fruits and vegetables and spices.

Next to the agricultural sector, the Industry of Rajasthan plays a major role in the economy. The industrial sector accounts for about 32.5 per cent of the total share of the state's economy. The main industries of Rajasthan include textile, rugs, woolen goods, vegetable oil and dyes. Heavy industries consist of copper and zinc smelting and the manufacture of railway rolling stock. The other industries related to Private Sector include steel, cement, ceramics and glass wares, electronic, leather and footwear, stone and other chemical industries. Rajasthan is also known for its textile industry and the state is the fourth largest producer of spun yarn in India.

Rajasthan is also the major producer of cement contributing to 15 per cent of the national cement production.

Rajasthan is the third major salt producing state of the country and accounts for one-tenth of the national salt production.

Rajasthan is the second largest mineral producing state in India and houses about 90% of the total mineral reserves of the country. It shares 24% of the aggregate national production of non-metallic minerals. Thus the Mining sector is a very important revenue earner for the state. From this sector Rajasthan earns as mineral royalty an annual income of more than US$ 100 Million.

Another most important revenue contributor of the state is Tourism and accounts for about 15% of the economy of Rajasthan. Rajasthan contributes about 11.2 per cent and 3.3 per cent share in India's foreign and domestic tourist arrivals respectively. The Rajasthan government has brought down the luxury tax from 10% to 8% to boost the tourism industry of Rajasthan.

The services sector accounts for 45 per cent of the GDP of the state. Other sources of economy for the state are Infrastructure, Transportation, Energy, Power, Telecommunications, and Banking & Financial Institutions.


There is an exhaustive network of roads in the state covering a length of 140,000 km. Of these 89000 km are coated or surfaced roads as per 1999 statistics. A stretch of 4,597 km of national highways crisscrosses the state. This is a significant rise from 65000 km in 1993.Rajasthan power units have a generation capacity of about 4,547 MW. 72% of this domestic generation capacity is thermal power.

The state government's department of energy has been rendering exceptional performance in the past few years. The count of landline (fixed wire telephone subscribers) in Rajasthan stands at about 1.6 millions as in 2002 while there are around 770,000 cellular users in 2004. Such development has promoted the influx of investments in the state and also has attracted foreign business /> With the inflow of foreign revenue and multinational business units setting up ventures in Rajasthan, the economic system of the state has grown in leaps and bounds.

Banking & Financial Instituitions

The development and progress of a nation is inextricably linked to its infrastructure.Banking and financial institutions forms one of its primary pillars. The booming economy of Rajasthan is a case in point. One of the coveted tourist destinations, a plethora of banks and financial institutions dots the state. Besides easy availability of loans, these banks and financial institutions offers a gamut of services.

The Rajasthan Financial Corporation, instituted in the year 1955, is also rendering pioneering services in the financial sector. It offers monetary assistance to very small, small and medium sized industrial ventures.

Bank of Rajasthan

The emblem of the Bank of Rajasthan says it all. Comprising Chittorgarh's pillar of triumph, the sun in all its rising glory, halcyon dunes of sand and a coin, this bank promises to deliver the very best to its customers.

While the pillar signifies valor and glory and the bright sun epitomizes aspirations and development, the coin stands for commercial transactions. A pioneering bank, belonging to the private sector, Bank of Rajasthan boasts of separate outlets catering to foreign exchange services and industrial loans.

This financial institution endeavors to be techno savvy, render excellent customer services, have a well stacked exchequer, foster long lasting kinship with the customers, be the most sought after bank, be nationally renowned, among a host of other goals.


According to a survey, about 620,000 foreign and 7 million domestic tourists visited Rajasthan in the year 2002. Rajasthan contributes about 11.2 per cent and 3.3 per cent share in India's foreign and domestic tourist arrivals respectively. It is calculated that on an average Rs 400 per day is spend by a domestic tourist and Rs 800 per day by a foreign tourist. Thus tourism adds greatly to the economy of the state by contributing 13 per cent of the State Domestic Product. In fact in terms of economy, tourism is the third significant sector next to agriculture and industry.

Over the years, Rajasthan has come up with well-developed tourism infrastructure that includes about 6,000 hotel rooms in over 150 hotels. Among these 1400 rooms are of 54 heritage hotels and resorts. The Indian Hotels, ITC-Sheraton, The Oberoi and Holiday Inn are the renowned and predominant names in the Tourism industry of Rajasthan.


The Rajasthan Government has been making significant efforts over the past years to improve telecommunications in the state. By the end of the financial year 2003-04, the state housed about 1240 telephone exchanges and the telephone department had installed about 349230 connections in homes and business establishments.

The people of Rajasthan enjoy long distance calling facilities (inter city STD and ISD services). This is available in Jaipur, the state capital, all district headquarters and major cities. All these places are fax (facsimile) and telex enabled as well.

A number of private operators have made a foray into the telecom field in the state. One of the major private major operators Bharti Hexacom Ltd launched AIRTEL - Rajasthan in December 1996 on a GSM 900 platform. Aircel Digilink India Ltd launched their Rajasthan operations in August 1997 on a GSM 900.

Last Updated on : 01 December 2011