Rajasthan: Industrial Development
Rajasthan is a MOST leading investment destination in India after Maharashtra and Gujarat because of peaceful environment, better law and order situation, excellent infrastructure, investment friendly climate and very less population density. Areas facing NCR such as Bhiwadi are now buzzing with automobile and manufacturing companies. Many of the small scale suppliers and vendors have opted to shift inside Rajasthan border from Gurgaon in Haryana because of perennial power shortage and poor infrastructure there.
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.
Rajasthan is now the preferred destination for IT companies and North India’s largest integrated IT park is located in Jaipur and is named as Mahindra World City Jaipur covering nearly 3,000 acres (12 km2) of land. Some of the companies operating in Rajasthan include Infosys, Genpact, Wipro,Truworth, Deusche Bank, NEI, MICO, Honda Siel Cars, Coca Cola, Gillete etc.
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.
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.
Rajasthan with its rich industrial base, supported by its vast resource base and expanding infrastructure has positioned itself as an ideal investment destination. The GSDP (2011-12 prices) of Rajasthan grew at a CAGR of 5.5% during FY15 to Rs 5,121 billion from Rs 4,365 billion in FY12. The CAGR growth rates of primary, secondary and tertiary sector were 6%, -1.2% and 9.2% respectively. Further, the contribution of the primary, secondary and tertiary sector to State’s GVA in FY15 were 34%, 23% and 43% respectively. The per capita income in FY15 (current prices) was Rs 84,837.
The State Government has systematically created a policy environment that nurtures private enterprises and makes investing in the State profitable. In addition to a general package of financial incentives, sector-specific policies have been formulated to promote investment through the Mineral Policy 2015, MSME Policy 2015, Solar Energy Policy 2014, Tourism Unit Policy etc. Rajasthan has been ranked 8th on the DIPP’s Business Reform action Plan 2016.
The state has also launched the ‘New Single Window Clearance System’ facilitating the investors. A substantial portion of Rajasthan falls in the NCR area. Having excellent logistics network, the State has 2,48,604 km of total road length and 7,906 km of national highways. The Western Dedicated freight corridor and DMIC passing through the State will provide a major thrust to the manufacturing sector. The Installed Power Capacity of the State is 18,305 MW and has renewable energy potential of 148,518 MW, which is one of the highest in the country. Rajasthan has huge number of investment opportunities in sectors such as Mines & Minerals, Auto and Engineering, Renewable Energy, IT/ ITeS, Agro, Dairy & Food Processing, Textiles, ESDM, Tourism & Healthcare, Defence Manufacturing etc. Rajasthan is also India’s leading state in tapping wind energy for power generation. State is endowed with high level of solar radiation (6-7 kWh/ m2/ day) and large tracts of relatively flat, undeveloped land, promoting the development of solar energy. Defence manufacturing has been identified as one of the thrust sectors to promote and facilitate investments in Rajasthan.
- The Alwar and Jaipur districts are close to major auto production hubs of the country such as Noida (Uttar Pradesh), Gurgaon and Dharuhera (Haryana); offering excellent advantages for setting up of auto and auto ancillary units.
- Over 100 units are currently functional in Bhiwadi, Neemrana and Pathredi in Alwar district, Rajasthan. These are the 3 main auto clusters in Rajasthan.
- Rajasthan has huge reserves of cement-grade and Steel-Melting-Shop (SMS) grade limestone. SMS-grade limestone from Jaisalmer is supplied to various steel plants in the country.
- Rajasthan has 21 major cement plants, having a total capacity of 55 million tonnes per annum (MTPA). It is the largest cement-producing state in India.
- Rajasthan offers tremendous opportunities in the areas of organic and contract farming as well as in infrastructure developments related to agriculture. Rajasthan is the largest producer of rapeseed, bajra and mustard. It is the second largest producer of oilseeds and spices and third largest producer of soya bean and coarse cereals in India.
- Rajasthan is a leading producer of limestone, silver, gold, copper, marble, sandstone, rock phosphate, and lignite. The state is the largest producer of cement in India. It has 21 major cement plants, having a total capacity of 55 million tonnes per annum (MTPA). Rajasthan is also the second-largest producer of milk and the largest producer of wool in India.
- Rajasthan has reserves of numerous precious and semi-precious stones and is the largest manufacturer of cut and polished diamonds in the country. The world’s largest centre for gemstone cutting and polishing is located in Jaipur.
Major sectors for SEZs in the state include IT/ITES, textile, handicrafts, electronics, multi product and gems & jewelry.
Mahindra Gesco Special Economic Zone
This integrated Business City , spread over 1215 Ha, is envisaged to be provided with dedicated zones for each sector viz. Information Technology (IT) & IT Enabled Services (262.14 Ha), Manufacturing, Warehousing & Logistics, Leisure and Residential zones.
Location Located off the NH 8 (Jaipur – Ajmer Highway), Mahindra World City is conveniently located and in close proximity to Jaipur City (25km) with easy access to the international airport. It is a City away from the bustle.
Delhi Mumbai Industrial Corridor (DMIC)
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