Economy of Rajasthan : Overview

Rajasthan Economy is the 8th biggest economy in India with the Net State Domestic Product (NSDP) of more than US$ 11.5 billion. The Economy of Rajasthan grew at a Compounded Average Growth Rate (CAGR) of around 6% during the years 1994 to 2003. The economy of the state is dependent on agricultural, industrial, tourism, and mining sectors.

Rajasthan is a mineral-rich state and has a diversified economy having agriculture, mining and tourism as its main engines of growth. The state mines produce gold, silver, sandstone, limestone, marble, rock phosphate, copper and lignite. It is the second largest producer of cement and contributes one tenth of the salt produced in India.

Agriculture :

It accounts for almost 22.5% of the state's economy. In the state of Rajasthan, the total area that has been cultivated is around 20 million hectares and 20% of the area out of this is irrigated. The various kinds of crops that are cultivated in Rajasthan are wheat, oilseeds, ground nuts, jowar, barley, gram, pulses, bajra, maize, and spices. Many kinds of fruits and vegetables such as orange, mango, lemon, pomegranate, guava, potato, and peas are grown in Rajasthan. The agricultural farms are mainly irrigated with the help of tanks and wells. This sector has given a major boost to the Economy in Rajasthan.

Wheat and barley are cultivated in large areas, as are pulses, sugarcane, and oilseeds. Cotton and tobacco are cash crops. Rajasthan is among the largest producers of edible oils in India and the second largest producer of oilseeds. Rajasthan is also the biggest wool-producing state in India. There are mainly two crop seasons Kharif and Rabi. The main source of irrigation is wells and tanks. The Indira Gandhi Canal irrigates northwestern Rajasthan.

Rajasthan is largest producer of rapeseed, bajra, mustard and wool in India and second largest producer of oilseeds and spices and milk. Rajasthan is third largest producer of soya bean and coarse cereals in India. Rajasthan is also the leading producer of milk in North India. 

Industries :

Rajasthan is a leading investment destination in India after Maharashtra and Gujarat because of its environment, law and order situation, infrastructure, investment climate and favourable population density. Areas facing NCR such as Bhiwadi are now popular with automobile and manufacturing companies. Many of the small scale suppliers and vendors have opted to shift inside Rajasthan border from Gurgaon in Haryana because of power shortage and infrastructure issues there. Rajasthan State Industrial Development and Investment Corporation (RIICO) provides facilities for development. Rajasthan is now the preferred destination for IT companies, and North India's largest integrated IT park is located in Jaipur and is named as Mahindra World City Jaipur covering nearly 3,000 acres (12 km2) of land. Some of the companies operating in Rajastha include Infosys, Genpact, Wipro,Truworth, Deusche Bank, NEI, MICO, Honda Siel Cars, Coca-Cola, Gillete etc. Rajasthan contributes 15% to the total cement production in the country. It also contributes 10% to the total salt production in India.

Mining :

Rajasthan is pre-eminent in quarrying and mining in India. Hindustan Zinc, headquartered in Udaipur, Rajasthan is India's only and world's leading integrated Zinc, Lead and Silver producer. With its large scale operations of smelting and mining in various districts of Rajasthan, the company has contributed to the socio-economic development of the state. The state is the largest source of cement. Rajasthan is largest cement producing state of India. It has rich salt deposits at Sambhar, copper mines at Khetri and zinc mines at Dariba and Zawar. This is a chart of output of major minerals of Rajasthan.

Tourism :

Tourism is flourishing in Rajasthan.The palaces of Jaipur, lakes of Udaipur, and desert forts of Jodhpur, Bikaner & Jaisalmer are among the most common destinations for tourists. Tourism accounts for sixteen percent of the state's domestic product. Many old and neglected palaces and forts have been converted into heritage hotels. Tourism has increased employment in the hospitality sector.

Rajasthan Economy depends to a very large extend on the tourism sector which accounts for almost 15% of the state's economy. The tourism sector in the state of Rajasthan has been flourishing due to the fact that the state is endowed with great natural beauty and has many palaces and forts all over the state that attracts tourists from India as well as abroad. This sector has given a major boost to the Economy in the state of Rajasthan. The other minor sectors that contribute to the Economy of Rajasthan are transportation, power, financial & banking institutions, telecommunications, energy, and infrastructure sectors.

Rajasthan Economy has grown over the years due to the efforts taken by the state government must continue to boost the sectors that provides it with the most revenue such as the agricultural and tourism sectors. This will ensure that the Economy of the state of Rajasthan will continue to rise.