PR No – 35
18th December, 2024
New Delhi
Rajasthan poised for sustainable growth and development: PHDCCI
Moving towards growth orbit, the state’s economy to expand more than USD 400 billion by 2030
According to an analysis conducted by PHD research Bureau, PHDCCI, Rajasthan holds an immense potential to become USD 351 billion economy by 2028-29 and surpass USD 400 billion mark by 2030, driven by continuous infrastructure improvement, a diversified industrial base, enhanced food processing, states of the art tourism infrastructure and a renewed focus on human development.
Rajasthan, one of India’s largest and most diverse states, is experiencing a remarkable economic transformation. As a key player in the nation’s economic growth, the state has shown impressive progress in multiple sectors, positioning itself to play a pivotal role in India’s economic growth, said the analysis report.
Between 2020-21 and 2023-24, Rajasthan’s Gross State Domestic Product (GSDP) has seen an outstanding growth trajectory, increasing from Rs. 10.17 lakh crore to Rs. 15.28 lakh crore. This growth, particularly in the post-COVID era, underscores Rajasthan’s resilience and commitment to sustainable economic development, said by industry body PHDCCI.
The industrial sector now contributes significantly, accounting for 28% of the Gross State Value Added (GSVA), with a strong emphasis on manufacturing, technology, and services. The services sector, in particular, has emerged as the largest contributor, driven by sectors such as IT, financial services, and tourism.
Agriculture continues to be a cornerstone of Rajasthan’s economy.
Despite challenges posed by the state’s arid climate, Rajasthan has successfully increased its food grain production by 35%, from 17 million tons in 2012-13 to 23 million tons in 2022-23. With its agro-climatic diversity, Rajasthan is now one of India’s leading producers of grains, oilseeds, spices, and fruits, said the report.
In addition, Rajasthan has seen significant improvement in its business environment, marked by enhanced Ease of Doing Business rankings and an influx of foreign direct investment (FDI), which reached USD 2,344 million from October 2019 to March 2024, said the industry body PHDCCI.
With policies such as the Rajasthan Investment Promotion Scheme (RIPS), the state has effectively facilitated industrial growth, particularly for the 26 lakh Micro, Small, and Medium Enterprises (MSMEs) that play a crucial role in Rajasthan’s economic expansion, said PHDCCI.
Strategic infrastructure development has been key to Rajasthan’s economy, with investments in transportation, renewable energy, urban development, and industrial hubs. Notably, Rajasthan has emerged as a leader in solar power, with numerous solar parks contributing significantly to the national energy grid
Rajasthan’s export sector has been equally impressive, reaching USD 10 billion in 2023-24. The state has become a hub for the export of engineering goods, gems, jewelry, textiles, and handicrafts. Through initiatives like trade fairs and export promotion schemes, Rajasthan has continued to expand its presence in the global market.
Rajasthan’s transformation is driven by key initiatives aimed at sustainable growth and industrial diversification. The Eastern Rajasthan Canal Project (ERCP), will address water scarcity and enhance agriculture across 2.82 lakh hectares. Recent announcement ₹1 lakh crore investment by Prime Minister under the Enhanced Regional Connectivity Plan (ERCP) will significantly boost infrastructure, improve inter-state water sharing, and enhance connectivity across Rajasthan and nearby states. This initiative promises economic growth, agricultural development, and job creation, ensuring sustainable progress and better resource utilization for the region.The Delhi-Vadodara Expressway is set to improve connectivity, boosting regional trade and investments.
The Rajasthan Petrochemical Zone will strengthen the state’s position in the petrochemical and plastic industries, fostering industrial growth and employment. Additionally, proactive policies like the MSME, Export Promotion, food processing and Tourism Policies are enhancing industrial competitiveness, job creation, and economic development, positioning Rajasthan as a more dynamic and resilient economic hub, said the industry body PHDCCI.
Rising Rajasthan Global Investment Summit, the state government highlighted initiatives to attract investments from the Non-Resident Rajasthani (NRR) community. The summit resulted in MOUs worth Rs. 35 lakh crore, with a goal to increase the conversion rate of these agreements. This could significantly boost industrial development and regional economic activity.
Going ahead, PHDCCI suggests strategic focus areas to enhance the state’s growth such as facilitating the youthful workforce, boosting agriculture and horticulture especially with more value addition through food processing, MSMEs, tourism, infrastructure, enhancing healthcare, education, solar with special emphasis on component manufacturing. With continued reforms, policy initiatives, and investments, the state can become a leading economic force in India, contributing to the country’s broader vision of becoming a Developed India by 2047.
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Warm Regards,
Media Division, PHDCCI