Reinventing Itself

Rajasthan needs no introduction. Known around the world for its rich history, vibrant culture, exquisite art and craft, beautiful forts and warm hospitality, Rajasthan is a tourist's paradise. But today, the state has added another feather to its hat by reinventing itself as one of the premier investment destinations in India. Registering double digit growth rates, the state today houses manufacturing units and campuses of many global corporations and domestic giants.

The policies of the government have resulted in a vibrant small and medium enterprises sector. There are multiple factors which work in favor of the state. For starters, the state has a rich resource base of minerals, oil and natural gas. The Mangla oil field is the largest hydrocarbon field in India. Rajasthan has deposits of 79 minerals, of which only 58 are being extracted. But that doesn't mean the state is lagging behind when it comes to renewable sources of energy. In fact, it ranks fifth in the country, among states producing power from renewable sources. The government on its part has been actively encouraging private companies to invest in the field of solar power, by allocating 8,000 acres of land for development of solar parks.

Another significant advantage the state offers is the infrastructure. 39 per cent of the ambitious USD 100 billion Delhi Mumbai Industrial Corridor (DMIC) passes through the state and it is the only state where two growth zones - the Neemrana-Bhiwadi-Tapukuda zone and the Jodhpur-Pali-Marwar zone – will be developed simultaneously. Both the zones will have an airport and a smart city. The state government is taking it a step forward by establishing two automotive manufacturing hubs in Alwar district. Proximity to the National Capital Region and northern and western markets of India, availability of skilled workforce and ample electricity, are some of the other factors which add to the attractiveness of the state.

The state offers excellent opportunities in the areas of infrastructure, power, ceramic and glass, auto and auto ancillaries, solar energy, information technology, outsourcing, cement, mineral and stone-based industries, agro processing, textiles and garments, tourism, gems and jewellery and education. 

That big corporate houses are investing in the state is no coincidence. This is a result of a carefully calibrated industrial policy which seeks to incentivize investments in the state. The key driver of change was the Investment Promotion Scheme of 2010. The state offers incentives in the form of subsidies, power concessions, land and building tax exemption, and special land package for IT industries. In addition, the state has the Statutory Single Window System and the Online Electronic Clearance Mechanism to ensure speedy and timely approvals for investment. The state has also been the first to launch Aadhaar based cards, which will give boost to its efforts for financial inclusion.


December 2012

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