Economy of Rajasthan


As an area-wise largest state in India, Rajasthan is surrounded by Punjab on the noth and north-east, Haryana and Uttar Pradesh on ease and Gujarat on the south-west. This Indian state is a leading producer of gold, silver, sandstone, limestone, marble, rock phosphate, copper and lignite. Offering several opportunities in organic and contract farming, Rajasthan is also the second largest producer of cement in India. It is interesting to know that the world's largest centre for gemstone cutting and polishing is situated in Jaipur.

Having recorded a tourist count of up to 34.59 million, Rajasthan offers numerous opportunities to expand the luxury tourist segment of the country as a whole. With a 12.83 percent hike in the gross state domestic product (GSDP) of Rajasthan from 2004-05 to 2014-15, Rajasthan has 2.5 percent of its economy contributed by the small industries and the overall industrial sector. Metals such as copper, zinc, mica, gypsum and lignite are found in abundance in Rajasthan. Witnessing an extensive production of cotton, the state's textile industry is also growing at a rapid pace. Other private industries set on the path of success in Rajasthan include caustic soda, sugar, ball bearings, vegetable oil, woollen goods, rugs and cement. The state contributes one tenth of the salt produced in India. Rajasthan accounts for India's ninety percent mineral reserves.

Out of the twenty million hectares of land that is being cultivated, only a marginal twenty percent land is being irrigated. Here, it is crucial to know that twenty two percent of Rajasthan's economy is accounted by the agriculture sector. Main crops cultivated in the state include Wheat, Barley, Gram, Bajra, vegetables, fruits, Pulses, Gram, Oil Seeds, Maize Ground Nuts and spices. While the months of June and July witness the crowd being sown, the months of September and October see them get harvested. Tanks and wells being the two main sources of irrigation utilized in Rajasthan, the state has fruit cultivated throughout the year. As per the Resurgent Rajasthan Partnerships Summit 2015 held in Jaipur on November 19th and 20th, agreements worth Rs 1.5 lakh crore have been signed with firms dealing in sectors including textiles, solar, petroleum and mining. Aiming to become a prime investment destination in India, Rajasthan is seeking plenty of investments owning to the inherent climatic advantages. Having received investment proposals worth Rs 5000 crore in the textile sector, Rajasthan will have more and more textile units getting operational which would further generate employment opportunities for over 25,000 people in 2016 and 2017. The state has an impressive pool of technically qualified individuals who are working towards upliftment of its economy. In addition to the Bureau of Investment Promotion (BIP) that is set up for focusing on investments of US$ 2.2 million+, there is a single window clearance system (SWCS) that is already operational in Rajasthan. Additionally, IT Parks with exquisite infrastructure have also been developed in this Indian state.

Infrastructure

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.

It is needless to say that the Rajasthan State Industrial and Investment Corporation(RIICO)- a State Government agency has already developed 322 industrial areas within the state. Moreover, all these industrial area are fed with power, shops, water, telecommunication facilities and roads.

The state government's department of energy has been rendering exceptional performance in the past few years. Rajasthan's state government agency has developed a brand new industrial estate in Neemrana which caters to the Japanese investors. With RIICO having allotted 1167 acre land to 23 different Japanese companies in Neemrana, a total investment of INR 23.2 billion is expected out of the allotted land. Plus, it is forecasted that over 4,900 people will get employment out of this industrial estate in Neemrana.

Banking & Financial Institutions

The development and progress of a nation is inextricably linked to its infrastructure. Banking and financial institutions form two 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. Last few years have seen a continuous growth in the state's financial services.

Key players in the Banking/Insurance/Mutual Funds segments in Rajasthan include the ICICI Bank, Deutsche Bank, HDFC Bank, Reliance Capital, ADB(Asian Development Bank) and Citi Bank. A large population of finance professionals including Chartered Accountants, Company Secretaries and ICWAs hail from Rajasthan. With favourable incentives and policies in place, Rajasthan offers an investor-friendly environment to all kinds of investors. Some other banks and financial institutions in Rajasthan include Regional Rural Banks, Reserve Bank of India, Scheduled Commercial Banks, Nationalised Banks, Scheduled Commercial Banks etc.

Tourism

Tourists greatly add to a state's economy. Rajasthan is no exception to this. It was on November 4, 2015 that Rajasthan signed the 76 memoranda of understanding (MOUs) worth Rs 319 crore in its tourism sector with different private entities. These MOUs are specially focused on setting up hotels, resorts and motels with the aim to provide direct employment to over 2800 people. The state's Tourism Minister Krishnendra Kaur took the decision to sign MOUs as an initiative to take Rajasthan on a global level in terms of tourism. The Indian Hotels, ITC-Sheraton, The Oberoi and Holiday Inn are the renowned and predominant names in the Tourism industry of Rajasthan.

The Resurgent Rajasthan Partnership Summit will also focus on leveraging tourism for the state's sustained development. Economic benefits like creation of jobs, foreign exchange earnings and the infrastructure development of local tradition and handicrafts will accompany the tasks performed for Rajasthan tourism's development. With a large number of tourist areas located in Rajasthan's thick forest cover, the state's tourism industry takes every possible care to ensure that the natural eco-system isn't being disturbed due to tourism development campaigns. Some of the well-identified areas that can be consumed for developing eco-tourism projects include Jaisamand Lake, Talab-e-Shahi of Dholpur and the Sambhar Wetlands of Jaipur.

Telecommunication

The Rajasthan Government has been making significant efforts over the past years to improve telecommunications in the state. It was just a few months back in the month of May that the Rajasthan High Court ordered all the base towers for the fourth generation(4G) telecom services to be removed without seeking any kind of permission from the city authorities. New in the race of 4G network, Reliance Jio was the one hit by this order, but it responded that all the towers erected by the company met and even exceeded the 4G tower norms.

A month before the Rajasthan High Court's order, it was the Urban Development and Housing (UDH) which issued a circular to all telecom service and infrastructure providers. This circular read that both these groups of service providers would now be allowed to install ground based mast (GBM) at any of their desired locations across Rajasthan.

Just like every year, the Department of Telecommunications, Rajasthan notified recruitment to 30 different posts in the state's telecom sector. Out of these 30 posts, 6 were to be occupied by Assistant Accounts, 17 by Senior Accountants, 1 by Junior Accountant and 6 by Lower Division Clerks. Such figures clearly indicate the excessive growth and development of the state's telecommunications sector.



Last Updated on : December 30, 2015