Last updated: Jan, 2024
Introduction
Rajasthan, the largest (area-wise) state in India, is in the northwest part of the subcontinent. It is surrounded on the north and the northeast by Punjab, Haryana, and Uttar Pradesh, on the east and southeast by Uttar Pradesh and Madhya Pradesh, and on the southwest by Gujarat.
The state has an agricultural economy with nine agro-climatic zones and various types of soil that help during the cultivation of crops. It is among the largest mineral-producing states in India. Around 81 varieties of minerals are available in the state and 57 minerals are produced on a commercial scale in the state. It also contributes significantly to the production of dimensional and decorative stones, such as marble, sandstone, granite etc. The state is one of the leading tourist destinations in India. Historic palaces, especially those in Jaipur and Udaipur, offer opportunities to expand the luxury tourism segment, with an increasing number of tourists visiting wildlife sanctuaries and desert locations.
Between 2015-16 and 2023-24, the state’s GSDP increased at a CAGR (in Rs.) of 11 %. At a CAGR (in Rs.) of 6.13% between 2018-19 and 2022-23, the tertiary sector has been the fastest-growing sector and the largest contributor to Rajasthan’s economy in 2022-23, with a 43.74% share in the state’s GSVA. The growth was driven by storage, communication & services related to broadcasting, financial services and public administration. According to the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investment (FDI) inflows in the state stood at US$ 2,173.91 million between October 2019-June 2023.
Key Sectors
- Home & Cooperation Minister Mr. Amit Shah, laid the foundation stone and performed Bhoomi Pujan of Shri Tanot Mandir Complex Project under Border Tourism Development Programme in Jaisalmer in September 2022.
- In August 2022, Mr. Narendra Singh Tomar, Minister of Agriculture and Farmers Welfare inaugurated four new facilities at the Central Arid Zone Research Institute (CAZRI), which has been rendering excellent services for more than 60 years under the Indian Council of Agricultural Research (ICAR).
- In July 2022, NTPC Renewable Energy Limited signed an MOU with the Government of Rajasthan for the development of 10 GW ultra mega renewable energy power parks.
- As of September 2023, Rajasthan had a total installed power generation capacity of 40,153.42 MW, of which 3,758.38 MW was under the central utilities 8,890.35 MW under state utilities and 27,504.71 MW under private sector. Of the total installed power generation capacity, 14,223.19 MW was contributed by thermal, 1,941.93 MW by hydro and 23,431.56 MW by renewable energy.
- The state is the leading producer of cement-grade limestone in India. Production of limestone reached 66.26 million tonnes in April 2020-February 2021.
- Tourism is one of the key sectors in the state. In 2021, 219.88 million domestic tourists and 0.34 million foreign tourists visited Rajasthan.
- As of July 2022, the state was home to six notified Special Economic Zone (SEZs)
- In July 2022, the government approved the construction of the Taranga Hill-Ambaji-Abu Road new rail line to provide connectivity and improve mobility.
- The Rajasthan cabinet approved the Rajasthan Film Tourism Promotion Policy 2022 with the objective of promoting film production activities in the state.
- Total merchandise exports from Rajasthan stood at US$ 9.68 billion in FY23.
- In FY23, the total exports of plywood & allied products from Rajasthan stood at US$ 633.33 million.
- Mining and Mineral Processing is another key sector for the state. Export of Zinc and Products made of Zinc reached US$ 367.67 million in FY22.
- In February 2021, value of all minerals produced^ in the state stood at Rs.1,479.95 crore (US$ 202.45 million).
- Food grain production was estimated to have reached 38.96 million tonnes in 2020-21. Production of cereals and pulses was estimated at 22.25 million tonnes and 4.88 million tonnes during the same period.
- In 2020, 40 investment intentions were filed in the state with a total investment of Rs. 12,698 crore (US$ 1.71 billion).
- The policy environment has been favourable for the establishment of industrial units. A single window clearance system (SWCS) for investment approvals is operational in the state and the Bureau of Investment Promotion (BIP) was set up to focus on investment above US$ 2.2 million. Rajasthan stands sixth among Indian states in rankings based on ease of doing business and reforms implementation as per a study by the World Bank and KPMG.
Note: ^Excluding Fuel, Atomic and Minor Minerals
