The most attractive businesses in Rajasthan

The Rajasthan government has put in place several reforms and policies to help transform its economic landscape for the benefit of businesses.


Being home to highly skilled human resources, Rajasthan is one of the key industrial destinations in the country. However, with growing unemployment and a dwindling economy, the state government is actively taking steps to attract the IT, tourism and mining sectors through incentives and regulatory reforms. 

The industrial sector contributes 27.8% to the state’s economic growth according to a report.  The sectoral contribution of industries to the total Gross State Value Added (GSVA) of the state clocks in at 24.80% at current prices in 2020-21, according to the latest report. The contribution of the manufacturing and mining sector to the GSVA at current prices are 9.31% and 4.15% respectively in 2020-21.

Image credit: Deborath Ramos, Unsplash

By 2022, Rajasthan will have a workforce of about 480 lakh individuals with close to 98% of them either fully or partially unskilled. To move towards an industry-powered economy, the state needs around 11% of the labour to be fully skilled. 

SEZ Promotion

The state government has invested heavily in promoting SEZs especially the ones to do with electronic, gems, IT, handicrafts, textiles and automotive sectors. It has invested Rs 4,000 crore in offering facilities for these sectors. 

The Rajasthan Industrial Infrastructure Corporation (RIICO) set up in 1969, has been working towards setting up industrial areas in the region and also providing loans to small, medium and large scale projects. 

The Rajasthan government announced in its union budget 2021-22 that it is now working towards turning Jaipur into a fintech city. The government spent a whopping Rs 106 crore on this project, which is expected to roll out in FY 2022.

“The leadership of the state has carved the policy framework in a way that can accelerate the growth of many sectors in Rajasthan,” Shakuntala Rawat, Industries & Commerce Minister of Rajasthan Government told Economic Times.

“RIPS 2019 scheme of incentives, MSME Policy, Single Window System (SWS) and One Stop Shop (OSS) facility are the initiatives that have made investment processes easy,” Rawat added.

Drawing investments into the state

In order to drive market participation in Rajasthan and build business partnerships that will provide more jobs and spruce the economy, the government will be organising “Invest Rajasthan 2022” on January 24 and 25. 

In line with the vision to attract investment to the state, the government had signed investment proposals worth Rs 40,510 crore from four big investors during the Investor Contact Programme which concluded in Hyderabad.

IT Sector

To encourage more IT companies to set up base in Rajasthan, the state government is giving land rebates up to 60% and 50% exemption on stamp duty. Companies can also avail a 50% exemption on electricity duty for seven years. 

With a view to support homegrown startups, the government has set up an iStart Portal that works as a single window for startups. Additionally, Challenge for Change, Rajasthan Stack and QRate ranking mechanisms have also been made available to startups. 

The state works to hold out a world class platform to enable corporations to establish their operations hassle-free, hand-in-hand with the private sector. India’s largest Special Economic Zone (SEZ),  Mahindra World City in Jaipur, spans 3,000 acres and has a dedicated IT/ITeS zone spread over 750 acres. Several multinational companies such as Infosys and EXL Services are already part of it.

Besides Jaipur, the government is also putting in efforts in boosting IT/ITeS sectors in Kota, Udaipur and Jodhpur. These cities have smaller IT parks ranging anywhere between 5 to 10 acres and all of them have high speed data communication infrastructure. 


Rajasthan is blessed with golden sand dunes, beautiful temples, majestic forts and a vibrant wildlife. Its handicrafts and handlooms are sought after across India and known for their impeccable designs around the world. The tourism sector contributes about 1.3-4% to the state's GDP. Around 151.17 lakh domestic and 4.46 lakh foreigner tourists visited the state in 2020. 

Going by the state’s budget of 2021-2022, it can be concluded that around Rs 500 crore will be invested to encourage tourism. UNESCO and Rajasthan tourism have partnered together to build 10 cultural tourism hubs to benefit 884 local artists and 594 handicraft artists in cities such as Bikaner, Jaisalmer, Varmer and Jodhpur. 

The tourism department is also looking to set up an 'International Centre for Excellence in Panchkkarm' at Dr Sarvepalli Radhakrishnan Rajasthan Ayurveda University to promote medical and wellness tourism.  The state is exploring opportunities for ecotourism with 3 National Parks, 27 Wildlife Sanctuaries and 14 Conservation Reserves.

Mining and Mineral Processing

Rajasthan is rich in minerals that serve as raw materials for several industries. The state produces copper, manganese, lead, lignite, petroleum and natural gas among 81 other varieties of metallic and non-metallic minerals. These contribute towards the production of marble, granite and sandstone. The mining sector generates close to 3.3 million jobs in the state. 

All minerals produced in the state collectively is known to have generated Rs 1,29,950 crore during 2020-21. The Department of Mines & Geology (DMG), Mineral Exploration Corporation Limited (MECL), Government of Rajasthan and Rajasthan State Mines & Minerals Limited (RSMML) together signed an agreement in 2021 to start a feasibility analysis for the mining of potash. In June, 2021, the government decided to reduce VAT on diesel to allow the mining sector some relief. 

Agricultural Sector

For companies that process, package and market agricultural produce in Rajasthan, the state government has a comprehensive Rajasthan Agro Processing, Agri-business & Agri-exports Promotion Policy. 

Image credit: Anurag Gautam, Unsplash

Under this policy, the government presents a capital subsidy for establishing agro processing units and allied infrastructure. Eligible entrepreneurs can avail up to 25% of the cost of their project, or a maximum of Rs 50 lakh. Businesses can also avail a top up capital investment subsidy for projects sanctioned under government schemes in agro processing clusters, collection centres for vegetables and fruits and mega food parks. 

Other than these sectors, the Rajasthan government also has an iStart Nest, which is an incubation centre for domestic startups. The government also plans to invest up to Rs 25 lakh to assist startups in the state. 

“To accelerate entrepreneurship in the state and promote the talent of youth, we are already providing the best support," said Chief Minister Ashok Gehlot.

"Currently, the iStart program is successfully supporting urban cities. Rural Rajasthan’s young ones have already proven their strong willpower and unmatched capabilities of innovation. They will benefit from Rural i-Start which is proposed to be rolled out in the coming FY,” Gehlot added.


Edited by Roshni Shroff


Some resources to get a better idea about the businesses in Rajasthan: 

Rajasthan: expanding horizons

Rajasthan gets investment commitments worth over Rs 6 trillion