Business Tourism in Rajasthan
Rajasthan, with its enchanting heritage, culture and art has mesmerized the world
for centuries. Interestingly, Rajasthan has now also started featuring prominently
on the list of an entirely new set of people, the investor community. Gateway to
the large markets in north and the west India, today, Rajasthan is one of the rapidly
growing economies in India.
Rajasthan's business environment is powered by an enterprise-friendly government,
good infrastructure and a young & highly skilled workforce. The remarkably peaceful
and politically stable state offers a set of unique advantages and opportunities
for profitable investment in many sectors.
Industry Sectors in Rajasthan
Rajasthan State Economy
With the State Domestic Product (NSPD) of Rs.1381.84 billion in 2007-08, Rajasthan
is the eighth largest economy in India. During 2006- 07, the economy grew by a healthy
Agriculture is the main economic activity in the State and the sector is also the
largest employment generator. Besides agriculture, construction, tourism and manufacturing
are significant contributors to the State income. Key industries in the State are
textile, tourism, gem & jewellery, dimensional stones (marble and granite), agro-processing,
cement and other mineral-based industries. Auto & auto-component manufacturing,
IT and ITeS, oil & gas, power generation, and road construction are the emerging
Principal exports from the State include gems & jewellery, woollen carpets, hand-printed
apparels & furnishings, tie & dye clothes, handicraft articles, marble and granite,
and engineering goods.
Rajasthan State Government Policies
- Investment Policy
The Rajasthan Investment Promotion Scheme (RIPS) aims to promote investment in Tourism,
Education, Medical & Health, Information Technology and other service sectors besides
manufacturing. The Policy is a package of exemptions and subsidies, especially developed
for the "new economy".
- Non Conventional Energy Policy
Single Window Clearance on proposals received for developing the power plants based
on non-conventional energy sources. BOT Mode: The developers the build wind farm,
install wind generators, develop power evacuation system and transfer the built
project to the investor, in whose name the PPA is signed for a period of 20 years
(in case of sale to grid). Besides the incentives offered by the Government of India,
GoR too offers a package of incentives. Exemptions
- IT and ITES Policy
An escort service would be started with one Government official becoming the single
point of contact for approvals and clearances and Self certification allowed for
IT & ITES companies for several compliances.
Investment in Rajasthan
The State Government has undertaken several measures towards liberalization, de-licensing
and strengthening the Single Window Clearance System, in order to induce investments
in various sectors. Special Economic Zones (SEZs) are being developed with a view
to provide the infrastructure and environment, conducive to seamless business operations.
The State Government has also provided for further relaxations to the investors
under the 'Rajasthan Investment Policy, 2003'.
The Government of Rajasthan recently held the 'Resurgent Rajasthan Partnership Summit',
which received an overwhelming response from renowned private establishments. Investments
worth Rs162, 000 crores (US$40 billion) were proposed through 300 MoUs/LoIs signed
at the Summit; reflective of the attractive environment provided by the State to
present and prospective investors.
The State Government has also formulated the 'Rajasthan Social Sector Viability
Gap Funding Scheme 2007' to ensure the supplementation of scarce public resources
for investment in social infrastructure sectors.
Advantages of Investment
Take a closer look at this vibrant, fast-growing State and you will find all the
ingredients of a perfect location for a stable and profitable investment.
- Easy Market Access
Rajasthan is the corridor between the wealthy northern and the prosperous western
states of India which enables it to provide quick and low-cost access to the two
largest consumer markets in the country. Rajasthan also provides passage between
the ports on the western coastline and the landlocked states in the north. Rajasthan
touches 6 major states of northern, western and central India - Haryana, Uttar Pradesh,
Punjab, Madhya Pradesh, Gujarat and Delhi - giving direct access to an aggregate
market of about 330 million people.
Rajasthan's development is driven by sound infrastructure for significant and sustained
growth. Power, transportation, communication and industrial infrastructure have
been fundamental forefronts of physical infrastructural development. The two most
ambitious national highways projects of Government of India - East-West North-South
corridor and the Golden Quadrilateral - are bound to benefit Rajasthan, as a good
part of both these projects pass through the State. To facilitate export-import
movement in the state, Inland Container Depots (ICDs) have been set up at Jaipur,
Jodhpur, Bhiwadi, Udaipur, Kota and Bhilwara.
- Vast Talent Pool
Over the last few years, the State has effectively invested in capacity building
through development of a strong institutional network at all levels. Today, Rajasthan
has 14 public universities, 8 deemed universities and 4 private universities, 64
engineering colleges, 75 MBA institutes and over 966 colleges that are producing
well-qualified professionals. Moreover, there is an intake of 90,000 seats in technical
institutes in the state. Besides, 431 Industrial Training Institutes are preparing
a skilled workforce of 43000 people every year to fuel industrial growth. The Indian
Institute of Technology will soon set-up its another branch in Kota.
- Basket of Unexploited Resources
Rajasthan offers a big basket of unexploited resources agricultural and mineral
with tremendous potential for value-addition and exports. Blessed with varied
climatic conditions, the State is the leading producer of a number of cash-crops
including oilseeds and spices. Rajasthan is also one of the largest mineral producing
states in India offering a variety of minerals ferrous and non-ferrous and inputs
to cement, ceramic, fertilizer and construction industries.
- Unique Tourist Attractions
Rajasthan's rugged forts, beautiful palaces, picturesque Thar Desert, bird sanctuaries
and national parks, lively fairs and festivals, lakes and mountains, fascinating
handicrafts and colorful culture is arguably the most comprehensive and unique basket
of offerings for any tourist. The number of tourists visiting Rajasthan every year
is about one-and-a-half times the entire population of Holland.
- Pro-business Governance
Given the effective law enforcement and peace-loving people of Rajasthan, industrial
units in the State share a remarkably healthy industrial relation environment, with
negligible incidents of labour unrest. The overall law and order situation in the
State is very good; cities are safe and working environment, amicable. The natives
welcome people from outside the State, and discrimination on the basis of community
or regional backgrounds is unheard of. Great Place to LiveRajasthan has some of
the best planned cities in the country. With a unique blend of rich culture and
modern day comforts, the cities offer excellent lifestyle. The cities have excellent
educational institutions, shopping malls, multiplexes, clubs, restaurants, art galleries,
luxury hotels, health centres and spas, making them ideal places to live in.
MICE(Meetings, Incentives, Conventions and Exhibitions)
Meetings, Incentives, Conventions and Exhibitions (MICE) Market are one of the most
exciting and fast growing segment in hand trade. Trends indicate that travel agents,
tour operators, hotel companies, cruise companies are all eyeing the Rajasthan MICE
market as one with great potential for future growth. The sheer size of this market
and its tremendous capacity makes it both significant and lucrative. The princes
of Rajasthan deliberated in style and built splendid meeting chambers.
Birla Auditorium, Jaipur
Rajasthan is not only about an aristocratic ambience, it makes business sense too.
The State offers unparalleled luxury in heritage accommodation, great sight seeing
and entertainment along with it's famed traditional hospitality. Moreover, a good
tourism infrastructure provides a host of facilities like welcome ceremonies, transportation,
convention receptions, banquets and gourmet of any kind. Trained English speaking
convention hosts and hostesses conduct convention registrations and provide assistance
with professional capabilities. The infrastructure for good communication like telephones
and the internet is also available.
Rajasthan offers a wide choice of convention centres. You can choose from well-connected
cities like Jaipur, Jodhpur and Udaipur to small venues which could be historical
or even wildlife sanctuaries depending on your liking. Rajasthan can also arrange
for conventionalizing theme conferences. Rajasthan offers a wide choice of convention
centres. You can choose from well-connected cities like Jaipur, Jodhpur and Udaipur
to small venues which could be historical or even wildlife sanctuaries depending
on your liking. Rajasthan can also arrange for conventionalizing theme conferences.
- Main centers like Jaipur, Jodhpur and Udaipur are linked by air while the other
venues are easily accessible by rail and road.
- Major Hotels are having the facility and event management companies are their, to
facilitate and manage events.
- Arrangement for transportation, sightseeing, catering or any other demands can be
handled perfectly. Pre and post conference tours can be organized.
- Special requirements for accompanying family members can be taken care of.
- A tourist infrastructure that is able to provide everything from ceremonial welcome
to cars, buses and other facilities.
- Interesting venues with right facilities and proper management.
- All technical requirements are looked into along with professional services.
- Thematic shows and mock festivals are readily arranged on choice.
- Children can have a feast by indulging in entertainment parks, aqua parks or international
eating joints like McDonalds, Pizza hut, Dominoes, etc.
- The pleasure of indulging in authentic and thematic atmosphere while conducting
business adds thrill and adventure. It can also include various safaris.
Special Economic Zone (SEZ)
Rajasthan's location, with proximity to the Delhi International Airport and ports
of the western coast, makes it an ideal location for export-oriented industrial
development on a large scale. Most of this passage is already well connected through
4 to 6 lane highways. 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.
Five SEZs with an expected investment of Rs.165.15 billion have already received
formal approval. These are:
- Mahindra World City (Jaipur) Ltd., Jaipur
- Somani Worsted Ltd., Khushkeda, Bhiwadi, Alwar
- Genpact Infrastructure (Jaipur) Pvt. Ltd., Jaipur
- Vatika Jaipur SEZ Developers Ltd., Jaipur
- Mansarovar Industrial Development Corporation, Jodhpur
There are a number of incentives being offered to the upcoming SEZ developers and
units at Rajasthan Special Economic Zone. Some of these incentives for Rajasthan
SEZ developers and units are listed as under:
- Exemption from all kinds of state taxes, duties, levies, and local taxes
- Proper grants and equity will be provided to the projects of SEZ by the Central
- One of the officers of Rajasthan State Pollution Control Board will be actively
present in the office of Development Commissioner of the special economic zone of
- Adequacy in the supply of power to all the sectors in SEZ
- The state government is also responsible for supplying sufficient water and disposal
treatments from its own resources for SEZ
- The state government is on its way to announce some units in SEZ to be termed as
'public utility services' which will be run by Industrial Disputes Act
- A fast clearance for the units and services as rendered by the SEZs
- Connectivity of national or state highways