Macro overview of Rajasthan Economy

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Macro overview of Rajasthan economy

Rajasthan is the largest state of India, located in the north-western part of the subcontinent. It borders five major states in the northern, western and central parts of India which are Punjab, Haryana,UttarPradesh,Madya Pradesh and Gujrat. Strategic geographical location of Rajasthan presents it as a natural corridor between the wealthy northern and the prosperous western states, making it an important Trade and Commerce centre.

The natural Resources, policy incentives, strategic location and Infrastructure-2/”>INFRASTRUCTURE in the state are favourably suited for investments in sectors such as cement, IT and ITeS, ceramics, tourism, automotive and agro-based industries.

Rajasthan is the largest producer of oilseeds, seed spices and coarse Cereals in India. Tremendous opportunities exist in the areas of organic and Contract Farming as well as in infrastructure developments related to agriculture.

Between 2004-05 and 2014-15, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 12.83 per cent to US$ 95.31 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 13.05 per cent to US$ 85.68 billion.

Rajasthan accounts for 17.5 per cent of the total cement grade limestone reserves in India and is the largest cement producer with 21 major cement Plants having a total capacity of 55 million tonnes per annum.

Bureau of Investment Promotion (BIP) is a nodal agency of the Government of Rajasthan that facilitates investments in various sectors in the state. Rajasthan State Industrial Development and Investment Corporation (RIICO) is the sole agency in the state that develops land for industrial growth.

Some of the major initiatives taken by the government to promote Rajasthan as an investment destination are:

  • As per the state budget 2015-16, an estimated outlay of US$ 659.56 million was made for agriculture and allied industries in the state.
  • US$ 0.83 million for constructing the special priority roads and US$ 1.58 million for the construction of urban roads in the state.
  • The Government would also be providing US$ 76.82 million for Feeder Renovation Programme (FRP). In addition, the Government of Rajasthan would provide US$ 1.13 billion for the purpose of Equity contribution and budgetary support.
  • A Single Window Clearance System (SWCS) for investment approvals is operational in the state and the BIP was set up to focus on investments above US$ 2.2 million.
  • To draw investments, the state has planned for ‘Resurgent Rajasthan Summit’ in November 2015.
  • The Government of Rajasthan is promoting the development of several SEZs across the state for sectors such as gems and jewellery, handicrafts, IT, electronics, automotive/auto components and textiles.
  • Special auto and engineering zones have been developed in Pathredi Industrial Area and Bhiwadi. The three main auto clusters of Rajasthan – Bhiwadi, Neemrana and Pathredi –have as many as 100 functional units.
  • RIICO developed 323 industrial areas, including SEZs, Export Promotion industrial parks and inland container depots.
  • The State Government is encouraging JVs and contract management of private heritage properties (forts, fortresses, palaces and havelis) as well as identifying heritage government properties to award on a lease basis to promote tourism.
  • IT parks with special infrastructure have been set up at Jaipur, Jodhpur, Udaipur, Kota and Alwar.
  • The Government of India is planning to set up India’s first gems bourse in Jaipur with an investment of US$ 8.29 million to facilitate organised trading of gem stones.
  • In 2014, Rajasthan Solar Energy Policy was introduced to reduce dependence on conventional sources of energy by promoting the development of nonconventional energy sources, especially solar power.

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The economy of Rajasthan is the ninth-largest economy in India, with a gross state domestic product (GSDP) of ₹1.02 trillion (US$13 billion) in 2017–18. The state has a diversified economy, with major sectors including agriculture, manufacturing, mining, and tourism.

Rajasthan is a major producer of agricultural products, including wheat, rice, Cotton, and sugar cane. The state is also home to a number of large manufacturing industries, such as automobiles, textiles, and chemicals. Rajasthan is also a major producer of Minerals, including coal, iron Ore, and limestone.

Tourism is a major contributor to the Rajasthan economy, with the state attracting millions of visitors each year. The state is home to a number of historical and cultural sites, as well as a number of popular tourist destinations, such as the Taj Mahal and the Amber Fort.

The economy of Rajasthan has been growing at a healthy rate in recent years. The state’s GSDP grew at a compound annual growth rate (CAGR) of 8.5% between 2012–13 and 2017–18. The state’s economy is expected to continue to grow at a healthy rate in the coming years.

The following are some of the key challenges facing the Rajasthan economy:

  • POVERTY: Rajasthan is one of the poorest states in India, with a poverty rate of 25.9% in 2011–12.
  • Inequality: Rajasthan is also one of the most unequal states in India, with a Gini coefficient of 33.1 in 2011–12.
  • Infrastructure: Rajasthan has a poor infrastructure, with a lack of roads, railways, and Airports.
  • Education: Rajasthan has a low Literacy rate, with only 69.2% of the Population literate in 2011.
  • Healthcare: Rajasthan has a poor healthcare system, with a high infant mortality rate and a low life expectancy.

The following are some of the key policy reforms that are needed to address the challenges facing the Rajasthan economy:

  • Investment in infrastructure: The state government needs to invest in infrastructure, such as roads, railways, and airports.
  • Improvement in education: The state government needs to improve the education system, by increasing the number of schools and improving the quality of education.
  • Improvement in healthcare: The state government needs to improve the healthcare system, by increasing the number of hospitals and improving the quality of healthcare.
  • Promotion of Entrepreneurship: The state government needs to promote entrepreneurship, by providing financial assistance and training to entrepreneurs.
  • Encouraging investment: The state government needs to encourage investment, by providing tax breaks and other incentives to investors.

The future outlook for the Rajasthan economy is positive. The state has a number of strengths, such as a diversified economy, a large workforce, and a favorable investment Climate. The state government is also taking steps to address the challenges facing the economy, such as investing in infrastructure and improving the education and healthcare systems. With these reforms in place, the Rajasthan economy is expected to continue to grow at a healthy rate in the coming years.

Rajasthan is the largest state in India by area, and the seventh most populous. It is located in the northwestern part of the country, and its capital is Jaipur. The state has a diverse economy, with a strong focus on agriculture, manufacturing, and tourism.

Here are some frequently asked questions about the macro overview of Rajasthan’s economy:

  1. What is the size of Rajasthan’s economy?
    Rajasthan’s economy is the ninth largest in India, with a gross state domestic product (GSDP) of $128 billion in 2018.

  2. What are the main sectors of Rajasthan’s economy?
    The main sectors of Rajasthan’s economy are agriculture, manufacturing, and tourism. Agriculture accounts for about 20% of the state’s GDP, manufacturing accounts for about 30%, and tourism accounts for about 10%.

  3. What are the main challenges facing Rajasthan’s economy?
    The main challenges facing Rajasthan’s economy are poverty, Unemployment, and Infrastructure Development. Poverty rates in Rajasthan are among the highest in India, and unemployment rates are also high. The state’s infrastructure is also in need of improvement, particularly in the areas of transportation and electricity.

  4. What are the main opportunities for Rajasthan’s economy?
    The main opportunities for Rajasthan’s economy are in the areas of agriculture, manufacturing, and tourism. The state has a large and growing population, which provides a large domestic market for goods and Services. Rajasthan also has a number of Natural Resources, including minerals, oil, and gas.

  5. What is the future outlook for Rajasthan’s economy?
    The future outlook for Rajasthan’s economy is positive. The state is expected to continue to grow at a healthy pace, driven by strong growth in agriculture, manufacturing, and tourism. The state is also making progress in addressing some of its key challenges, such as Poverty and Unemployment.

  1. Which of the following is not a major Industry in Rajasthan?
    (A) Agriculture
    (B) Tourism
    (C) Manufacturing
    (D) Mining

  2. The capital of Rajasthan is:
    (A) Jaipur
    (B) Jodhpur
    (C) Udaipur
    (D) Ajmer

  3. The population of Rajasthan is approximately:
    (A) 60 million
    (B) 70 million
    (C) 80 million
    (D) 90 million

  4. The main language spoken in Rajasthan is:
    (A) Hindi
    (B) Rajasthani
    (C) Punjabi
    (D) Gujarati

  5. The literacy rate in Rajasthan is approximately:
    (A) 60%
    (B) 70%
    (C) 80%
    (D) 90%

  6. The main religion in Rajasthan is:
    (A) Hinduism-2/”>Hinduism
    (B) Islam
    (C) Christianity
    (D) Sikhism

  7. The main exports of Rajasthan are:
    (A) Minerals
    (B) Textiles
    (C) Gems and jewelry
    (D) Engineering goods

  8. The main imports of Rajasthan are:
    (A) Petroleum products
    (B) Machinery
    (C) Chemicals
    (D) Food grains

  9. The main economic challenges facing Rajasthan are:
    (A) Poverty
    (B) Unemployment
    (C) Lack of infrastructure
    (D) All of the above

  10. The main government initiatives to address the economic challenges facing Rajasthan are:
    (A) The Rajasthan Human Development Report
    (B) The Rajasthan State Industrial Development and Investment Corporation
    (C) The Rajasthan RENEWABLE ENERGY Development Agency
    (D) All of the above

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