Rajasthan, the largest state (in terms of area) of India, is located in the northwestern part of the subcontinent. It borders to the north and north-east with Punjab, Haryana, and Uttar Pradesh, to the east and south-east with Uttar Pradesh and Madhya Pradesh, and to the south-west with 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 one of the largest mineral-producing states in India. About 81 varieties of minerals are available in the state, and 57 minerals are commercially produced in the state. It also significantly contributes to the production of dimensional and decorative stones, such as marble, sandstone, granite, etc.
The state is a major tourist destination 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.
The Gross Domestic Product of the State (GSDP) of Rajasthan increased at a CAGR (in Rs.) Of 7.05% between 2015-16 and 2020-21. With a CAGR (in Rs.) Of 10.86% between 2011-12 and 2020-21, the tertiary sector was the fastest-growing sector and the largest contributor to the Rajasthani economy in 2020-21, with a 45.44% stake in the state GSVA. Growth was driven by storage, communications and broadcasting services, financial services, and government.
In 2020, 40 investment intentions were filed in the state with a total investment of Rs. 12,698 million rupees (US$ 1.71 billion). As of February 2020, the state was hosting three operational Special Economic Zone (SEZs), four notified SEZs, one SEZ with an approval in principle, and five SEZs with formal approvals.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the inflow of foreign direct investment (FDI) into the state was $ 461.40 million between October 2019 and March 2021.
Major contributors to the economy
The agriculture industry of Rajasthan is the backbone of the state. Rajasthan cultivates wheat, barley, Pulses, Sugarcane, Oilseeds, Cotton, and Tobacco.
Rajasthan is the largest producer of rapeseed, bajra, mustard, and wool. It is the second-largest producer of Spices and Milk.
Rajasthan is becoming a favorable state for many industrial units to manufacture as well as open corporate offices in the state as they are creating favorable conditions for the same.
Areas such as Bhiwadi are now popular for automobile and other manufacturing companies. Many small-scale vendors and suppliers are shifting their base to Rajasthan as they have ample amount of electricity compared to neighboring states.
Not just that, Rajasthan is now the preferred destination for IT companies as well. North India’s largest integrated IT park is located in the state’s capital city Jaipur and is named Mahindra World City Jaipur, covering nearly 3,000 acres of land. Some of the companies operating in that park are Infosys, Wipro, Deusche BankHonda Siel Cars, Coca-Cola, etc.
Rajasthan has the highest number of mining leases in the country – 1324 primary mineral leases, 10851 secondary mineral leases, and 19,251 ore mining licenses. The state acquired about Rs. 590 billion in 2004-2005 of important minerals such as lead, zinc, and limestone. But this sector generates only 3% of state government revenue.
Tourism & Handicraft
There’s barely any adult individual who knows less about Rajasthan and its artistic work and tourism. Rajasthan is one of the most preferred destinations by domestic as well as international tourists.
Beautiful palaces of Jaipur, lakes of Udaipur, and desert forts of Jodhpur & Bikaner are among the most common destinations for tourists. The alone tourism industry contributes 16% of the state’s GDP.
Artistic clothes and handcrafted wooden items are one the most popular from Rajasthan around the world. You can see the fine craftsmanship on those carpets as well that are highly in demand in the international market. Blue pottery of Jaipur and Ustta Kalan of Bikaner are also famous around the globe.