Tourism Industry – Emerging Business Sector for Private Investment in Rajasthan



Tourism is the largest service industry in India, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India.

India witnesses more than 5 million annual foreign tourist arrivals and 527 million domestic tourism visits.

The tourism industry in India generated about US$100 billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate.

Rajasthan Tourism Industry

Rajasthan is famous for its rich cultural heritage, wild life and safaris, sand dunes and bio-diversity. It is endowed with ancient forts, magnificent palaces, large and small museums etc.

All these make the State of Rajasthan a favorite destination for tourists the world over.

Foreign Tourists visit in 2008

The total number of inbound tourists in India were 14,77,646 and out of these 10.5% visited Rajasthan.

Given this figure, the Government has taken several steps for promoting investment in the tourism sector.

Business Opportunities

As a result of all this, numerous opportunities have emerged for private investment it includes:

1. Investment in the development of tourism units: A Hotel Policy has been announced that offers a number of incentives for setting up of hotel units. A land bank has also been developed for setting up hotels in various important cities.

2. Development of heritage buildings in Rajasthan as tourism properties: The State Government is facilitating an arrangement wherein private heritage properties  can be taken up by investors in a joint venture or on management contract. The Government is in the process of identifying government properties of heritage value, which would be given out on lease arrangements.

3. Rope-ways: Specific locations have been identified (Udaipur, Ajmer, etc.) and Ropeways Act has been formulated to facilitate investment.

4. Adventure tourism products in Rajasthan: River sports, hot air ballooning, desert sports, horse safari, aero-sports, etc.

5. Development of Medical Tourism including starting more naturopathy, yoga and meditation centers.

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    Rajasthan Ceramic Industry – Booming due to Excellent Availability of Clay and Feldspar Minerals



    Ceramic Industry in India is fast growing. It maily comprises ceramic tiles, sanitary ware and crockery items which gets manufactured both in the large and small-scale sectors with wide variation in type, size, quality and standard.

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    Ceramic Industry in Rajasthan

    The state of Rajasthan is blessed with a rich variety of metallic as well as industrial (non-metallic) minerals (including rocks). With excellent availability of clay and feldspar, Rajasthan is an excellent location for ceramic and related industry.

    The State is already home to some of the largest ceramics, bone-china, manufacturing bricks, tiles, statues, insulators, porcelain units  etc.  These industries are located across the state but are concerned in Jaipur, Bikaner, Bhilwara, Abu Road and Bhiwadi.

    Feldspars & Clay Production

    • Feldspars, quartz, mica beryl and associated minerals occur in complex pegmatites. Simple pegmatites contain only quartz and feldspar with or without mica and it is these pegmatites which produce the maximum quantity of feldspars.
    • Rajasthan is a leading producer of clay accounting for 40% of India’s production. The quality of clay found in Rajasthan is superior to those found in other parts of the country and is used in the manufacturing of ceramic products

    Major Investors in Ceramic Sector

    * Kajaria
    * Liberty
    * Jaipur Ceramics

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    Steel Industry in Rajasthan – Comprises of Small Scale Re-Rolling and Stainless Units



    The iron and steel industry presents one of the most intensive sectors within the Indian economy. According to reports, India has emerged as the fourth largest producer of steel in the world and the second largest producer of crude steel with reached 28.49 million tonne (MT) in April-September 2009.

    Steel Industry in Rajasthan

    Rajasthan‘s steel industry comprises of mainly re-rolling and stainless steel units. The units are mostly located around Jodhpur, Alwar and Jaipur. Rajasthan also has huge reserves of steel melting shop (SMS) grade limestone which is supplied to various steel plants in the country.

    Investments in Steel Industry

    A host of steel companies have lined up major investment proposals. Furthermore, with an expanding consumer market, the Rajastyhan steel industry is likely to receive huge domestic and foreign investments.

    Key Investors in Steel Industry

    Asian Alloys Limited (AAL)

    • Its units are located in Punjab and at Bhiwadi in Rajasthan.
    • Company‘s products are mainly used in the paper and rubber industry.

    Kamdhenu Ispat Limited

    • Kamdhenu Group is a manufacturer of international quality steel bars in Northern India and the first to receive ISO-9002 certification by NQA QSR Dutch Council of quality ISO -9002 systems.
    • Steel bars are manufactured at its unit in Bhiwadi.
    • Its paint division has a plant in Alwar.

    PSL Limited

    • The company’s activities include manufacture of protective coatings for steel pipes, epoxy coatings for reinforcement bars, manufacture of epoxy powder paint and galvalum range of aluminium sacrificial anodes and the processing of iron ore.

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    Special Economic Zone (SEZ) in Rajasthan – Offers Infrastructure and Business Environment to Promote Exports



    Special economic zone or more commonly known as SEZ, is a particular area which acts as foreign territory for tariff and trade operations. In these zones Govt. provides tax exemption i.e excise, customs, sales and provide subsidisidies on water and electricity bills to companies.

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    Objectives of Special Economic Zone

    The prime objective of the Government is to develop specially delineated economic zones  to provide enabling infrastructure and a hassle free environment to promote exports from the State.  Special emphasis is  laid on development of product specific Special Economic Zones to harness inherent potential of the State in the fields of Gems & Jewellery, Handicrafts, Woolen Carpets etc.

    Rajasthan’s location and proximity to the Delhi makes it an ideal location for export-oriented industrial development on a large scale. 40% of the proposed Delhi-Mumbai freight corridor will pass through Rajasthan throwing up enormous possibilities for development of industrial belts such as special economic zones along the corridor.

    New Concessions for SEZ in Rajasthan

    Recently Rajasthan Chief Minister Mr Ashok Gehlot  added new points in SEZ Act that says : The industrial units established in the SEZ would get exemption from electricity duty for ten years instead of the previous seven years, while the hotels and entertainment units on the SEZ premises would be exempted totally from payment of luxury tax and get 50 per cent concession on entertainment tax for seven years.

    SEZs in Rajasthan

    Five SEZs with an expected investment of Rs.165.15 billion have already received formal approval and start working progressively. These are:

    * Mahindra World City (Jaipur) Ltd., Jaipur

    Following the success of Mahindra World City, Chennai, the second Mahindra World City was established in Jaipur. Inaugurated in December 2006, Mahindra World City, Jaipur is spread over an area of 3,000 acres.

    Some of the other SEZ’s in Rajasthan are:

    * Somani Worsted Ltd., Khushkeda, Bhiwadi, Alwar
    * Genpact Infrastructure (Jaipur) Pvt. Ltd., Jaipur
    * Vatika Jaipur SEZ Developers Ltd., Jaipur
    * Mansarovar Industrial Development Corporation, Jodhpur

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    Education Industry – One of the Fastest Growing Industry Sector in Rajasthan



    Education is the most essential element in human resource development. It has always been accorded an honored place in every economy.

    It implies ability of the people to read, write and understand. It has the fundamental aspects of imparting knowledge, wisdom and culture. It helps in drawing out the latent potentials and talents of an individual.

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    A well-defined educational system holds the key to economic growth, social transformation integration of a country.

    The Indian educational structure mainly consists of the Four stages, namely:-

    • Elementary Education
    • Secondary Education
    • Higher Education
    • Technical Education

    Education Industry in Rajasthan

    Education Industry in Rajasthan is fast growing. The education system of rajasthan is changing frequently owing to the initiatives taken by the Government and the involvement of other institutions.

    Rajasthan today have 85+ Engineering colleges including 10 Govt. Engineering Colleges. As the market is booming for technical education, engineering colleges in rajasthan will rise in future.  Private sector is increasingly being involved in the sector and many investment avenues are opening up for them.

    Government Initiatives

    For providing educational services, enrollment of students in schools, abbreviating gender disparities and promoting education, a number of policies have been implemented by the government.

    Some of them include scheme for establishing polytechnic colleges and ITIs under PPP mode in the lagging districts and Panchayat Samiti blocks where such facilities do not exist.  Provisions have been made to allot 10 acres of land, free of cost, to the private investor for setting up a polytechnic college in such areas.

    Free buildings will also be provided if the private investor prefers to establish Women Polytechnic in the lagging district. Private sector is increasingly being involved in the sector and many investment avenues are opening up for them.

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    Rajasthan Panchayat Polls Held Successfully – I, II and III Phase

    Categorized under: elections rajasthan


    Village communities have been in existence in India for over centuries and Panchayats have been part of these communities since then. Evidence suggests that during the time of the Rig Veda (1200 BC)  self-governing village bodies called sabhas existed.

    With the passage of time, these bodies evolved into Panchayats (council of five persons). These bodies were functional institutions of grassroots governance in almost every village. The village panchayat or elected council had large powers, both executive and judicial.

    Panchayati Raj is basically a system of governance in which gram panchayats are the basic units of administration. It has 3 levels: village, block and district. At the village level, it is called a Panchayat. It is a local body working for the good of the village. The number of members usually ranges from 7 to 31; occasionally, groups are larger, but they never have fewer than 7 members.

    The block-level institution is called the Panchayat Samiti. The district-level institution is called the Zilla Parishad.

    Powers to Panchayati Raj Institutions

    The ruling Congress in Rajasthan has promised to devolve substantial powers to the Panchayati Raj institutions in the state.

    All round development of villages, granting funds to panchayats and imparting more functional powers would be the first priority of the Congress government in Rajasthan.

    Panchayati Raj Polls – I Phase

    The first phase of Panchayati Raj polls in Rajasthan to elect 390 members of Zila Parishad and 1,915 members of Panchayat Samiti was held on 20 January. Electronic Voting Machines (EVMs) were used to conduct the polls .

    Panchayati Raj Polls – II & III Phase

    The second phase of polls were held on January 29, and today February 2 the III phase was conducted.

    There are total of 1013 members in 33 Zila Parishads (district level) and 5273 members in 248 Panchayat Samitis.

    Nearly 1.34 lakh police personnel were deployed to conduct free and fair elections.

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    Real Estate Industry in Rajasthan – Perfect Business Sector for Investment



    Rajasthan is experiencing an unprecedented real-estate boom, and the recent decision of the Government  of allowing FDI and setting up real estate mutual funds or real estate investment trusts have further given momentum to investments in the sector.

    World Trade Park in Jaipur

    In Rajasthan, Real estate market offers commercial and residential spaces that are fairly priced and conveniently located thereby catering to  demanding requirement of a property buyer.

    Leading Real Estate Investor in Rajasthan

    Reasonable land prices and good policy environment have also attracted many leading real estate companies to Rajasthan.

    Delhi-based builders Ansals, Vatika, Omaxe, Emaar MGF, Gold Souk and Parsvnath have launched a slew of residential projects in and around the various cities of Rajasthan. Many local developers like Narvik Nirman, Narayan group are also developing residential apartments here.

    Realestate Aspect of Jaipur

    Jaipur’s proximity to Delhi is a boon to the city. Jaipur is now being considered as an alternative city just like Gurgaon, Faridabad and Ghaziabad. Hence, Jaipur is the first choice for those corporate houses that want to spread out of Delhi and want to explore India’s west-zone.

    Real estate development in Jaipur has reached astounding heights as property developers from across the country coming here for investing.

    As per the data showcased by the Jaipur Development Authority (JDA), the population of the main city, which is 19, 00,000 is poised to grow to 48, 00,000 by 2011. This will create a high demand for residential properties in the city.

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    Rajasthan – A Leading Textile Manufacturing Hub



    Textile is an important business sector in Rajasthan from a investor’s perspective. According to reports, Rajasthan contributes over 7.5 per cent of India’s production of cotton and blended yarn and over 5 per cent of fabrics.

    Polyester viscose yarn & synthetic suiting, processing, printing & dyeing, low weight fabric, are some others which makes rajasthan a leading hub in textile sector.

    Textile Hub in Rajasthan

    In Rajasthan, bhilwara city has emerged as India’s largest manufacturer of suitings and yarn. Other cities like Pali, Balotra and Bagru are also famous for fabric textile.

    Jaipur is another of a well-known center for manufacturing garments primarily for exports. Some knitting units are in process of setting up their ventures at Neemrana, a industrial town 100 kms away from Delhi.

    Sanganer town in jaipur is famous worldwide for its dyeing and printing industries. There are about 400 industries involved in textile printing processes.

    A new garment cluster is being developed at Pathredi, near Bhiwadi in the National Capital Region. Two integrated textile parks are being developed at Silora (Kishangarh).

    Key Factors for Development of Textile Industry

    There are some key factors responsible for development of textile industry in Rajasthan which include abundant availability of multi-fiber raw material,  trained labour and a network of backward and forward linkages etc.

    Textile Industry Investor in Rajasthan

    * Rajasthan Spinning and Weaving (LNJ Group)

    * Grasim Industries (AV Birla Group)

    * Derby Textiles

    * Shree Rajasthan Syntex

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    Gems and Jewellery Sector Makes Rajasthan Highly Prominent as an International Destination



    Rajasthan is the most preferred destination for investments in major sectors. Easy availability of raw resources makes it the natural choice for agro, minerals and jewellery based industries.

    Gems & Jewellery Sector in Rajasthan

    Recognized as the diamond polishing state of the india, Rajasthan is gaining prominence as an international sourcing destination for high quality designer jewellery. According to IBEF, gems & jewellery manufacturing in rajasthan constitute 17% of India’s export which makes it the fastest growing jewellery market in the world.

    Jaipur – World Renowned Center for Gemstones

    For centuries, Jaipur has been a world-renowned center for sourcing of fine-cut precious and semi-precious gemstones. With heavy investment in technology, gemstone cutters have forward integrated and have started jewellery manufacturing.

    Jaipur now exports a wide range of studded silver, gold and even platinum jewellery.  Beautifully enameled artistic gold jewelry studded with flat diamonds and colored gemstones are recognized as a sign of aristocracy since Mogul period.

    Gems & Jewellery SEZ

    The presence of highly skilled, low-cost labour enables India to design and make high volumes of exquisite jewellery at relatively low cost. RIICO has also developed a special zone for Gems & Jewellery at the Export Promotion Industrial Park (EPIP) at Sitapura,  Jaipur.

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    Health Care Industry – An Integral Part of Rajasthan’s Future Growth



    Health care industry plays an important part in the economy of a country. According to IBEF, The healthcare industry in india, which comprises hospital and allied sectors, is projected to grow 23 per cent per annum to touch US$ 77 billion by 2012 from the current estimated size of US$ 35 billion.

    Parts of Healthcare Industry

    For purposes of finance and management, the healthcare industry is typically divided into two groups. It includes health care equipment & services and  another one is pharmaceuticals, biotechnology & related life sciences.

    Health care equipment and services comprise companies that provide medical equipment, medical supplies, and health care, such as hospitals, home health care providers, and nursing homes.

    The second industry group comprises sectors companies that produce biotechnology, pharmaceuticals, and miscellaneous scientific services.

    Healthcare Sector in Rajasthan

    Rajasthan seeks private sector investment in health sector in order to facilitate establishing quality health institutions within the framework of the set standards and norms.

    Major Investors in Healthcare

    In Rajasthan private sector corporate entities like the Apollo Hospitals, Wockhardt Hospitals and Fortis Healthcare have shown aggressive expansion plans. Bangaluru-based Narayana Hrudayalay are also planning to start their hospital in the pink city in march 2010.

    Other big investor include Geetanjali Foundation (Udaipur) and Bangalore-based Manipal Health Systems (MHS) etc.

    Many Cities that are attractive tourist destinations, is also being developed as centers for medical tourism in rajasthan.

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