Rajasthan Trade and Commerce | RPSC Preparation: All subjects - RPSC RAS (Rajasthan) PDF Download

Overview of Trade and Commerce in Rajasthan

• Rajasthan's Industrial Development: Rajasthan has historically lagged in industrial development, prompting concerted efforts from both the State Government and private sector to enhance the economy through planned industrial growth.
• Industrialization for Economic Growth: Industrialization is seen as crucial for driving overall economic growth in the region, with initiatives like "Make in Rajasthan" mirroring the national "Make in India" campaign.
• Focus on Employment and Revenue Generation: The industrial sector in Rajasthan aims at significant employment creation, revenue generation, and contributing to the State Domestic Product.

Key Industries in Rajasthan

• Cement Industry: Rajasthan's natural resources and conducive policies make it an attractive hub for cement production.
• Auto and Auto-components: The automotive sector, including auto-components, holds a significant presence in Rajasthan's industrial landscape.
• IT and ITeS: The Information Technology and IT-enabled Services sector contribute to the state's industrial diversity and growth.
• Ceramics Industry: Rajasthan's ceramics industry benefits from the state's resources and infrastructure, fostering growth and investment.
• Mining Sector: Rajasthan's mining sector, encompassing various minerals, plays a vital role in the state's economic development.
• Tourism Industry: Rajasthan's rich cultural heritage and tourism attractions make it a key player in the tourism sector.
• Textile Industry: The textile sector in Rajasthan leverages the state's resources and policies for sustenance and growth.
• Agro-based Industry: Rajasthan's agro-based industries benefit from the state's agricultural potential and government support.
• Gems and Jewelry: The gems and jewelry industry thrives in Rajasthan, supported by skilled craftsmanship and favorable policies.
• Marble Industry: Rajasthan's marble industry is a significant contributor to the state's economic landscape, benefiting from local resources and demand.

Investment Promotion and Industrial Development in Rajasthan

The state’s natural resources, policy incentives, and infrastructure are well-suited for investments in sectors including cement, IT and ITeS, ceramics, tourism, automotive, and agro-based industries.

• Bureau of Investment Promotion (BIP) and Rajasthan Industrial Development and Investment Corporation (RIICO) play crucial roles in encouraging investments and enhancing industrial infrastructure in Rajasthan.
• The state government of Rajasthan is actively promoting the establishment of various Special Economic Zones (SEZs) to boost sectors like gems and jewellery, handicrafts, IT, electronics, and textiles.

Agricultural Landscape of Rajasthan

• Wheat stands as the primary crop in Rajasthan, yielding approximately 5.8 million tonnes annually, followed by rapeseed and mustard at 2.8 million tonnes, and soybean at 1.0 million tonnes.
• Other significant crops in the state include cotton, guar seed, sugarcane, potatoes, and rice. Rajasthan emerged as one of India's leading producers of rapeseed and mustard, soybean, and coarse cereals during 2015-16.

Exports Scenario of Rajasthan

• Rajasthan witnessed a commendable growth in exports at a Compound Annual Growth Rate (CAGR) of approximately 19.5% from 2001-02 to 2008-2009.
• The state's key exports encompass textiles, handloom products, handicrafts, gems and jewelry, minerals, and auto components.
• To further enhance exports from Rajasthan, the State Government is focusing on establishing Export Promotion Industrial Parks (EPIPs).
• The development of "Expocity Jaipur" by Jaipur Trade Expo Centre Private Limited is a notable initiative. This expansive project spans 26,400 sq m and features diverse facilities like multi-utility residences, modern business centers, and entertainment zones.

Textiles Industry

Rajasthan holds a prominent position in the production of polyester viscose yarn, synthetic suiting materials, and the processing of economical, lightweight fabrics in regions like Pali, Balotra, Sanganer, and Bagru.

• Jaipur is renowned for garment manufacturing, especially geared towards exports.
• Bhilwara has emerged as a significant hub for manufacturing suiting fabrics and yarn within India.
• The availability of raw materials and skilled labor has catalyzed the textile industry's expansion in the state, attracting numerous textile units.
• Rajasthan's textile sector boasts a strong network of backward and forward linkages, providing a notable competitive edge.

ASIDE Scheme

• The ASIDE (Assistance to States for Infrastructure Development of Exports) Scheme aims to support states in creating infrastructure essential for promoting exports.
• ASIDE scheme focuses on enhancing infrastructure for promoting exports with support from the Central Government.
• Out of 31 sanctioned schemes, 26 have been completed, and work is ongoing for the remaining 5.
• An expenditure of 351.62 crore was utilized for these projects during the financial year 2016-17 (up to December 2016).

Bureau of Investment Promotion (BIP)

• BIP, established in 1991, is the primary agency for investment promotion in the state.
• It acts as a comprehensive resource from project ideation to execution, aiding in quick clearances from different departments and resolving investment-related issues.
• The Rajasthan Single Window Enabling & Clearance Act streamlines investment processes, ensuring timely responses to investment applications.
• BIP oversees investments exceeding ₹10 crore under the Single Window System.
• The Resurgent Rajasthan Partnership Summit, held in 2015, aimed to refurbish the state's image as a top investment destination.
• Through proactive engagement with investors via roadshows and the summit, 470 MoUs totaling ₹3.38 lakh crore were inked.

Development of Special Parks by RIICO

Japanese Park

• RIICO has partnered with JETRO, a Japanese organization, to facilitate the establishment of Japanese industrial units in Neemrana Industrial Area, District Alwar, Rajasthan.
• Key multinational companies like Nissin, Mitsui, Daikin, Mitsubishi, and Dainichi color have secured land in this area for their operations.
• 433 acres of land have been allocated to 47 Japanese companies, with 43 already in commercial production.
• An estimated investment of 4,226 crore is projected for the allotted land, creating job opportunities for around 9,600 individuals.

Korean Investment Zone

• RIICO has entered into a memorandum of understanding with Korea Trade Investment Promotion Agency (KOTRA) to establish a Korean Investment Zone in Ghiloth Industrial Area, District Alwar.

Innovative Schemes/Initiatives taken up by the Corporation

Mahindra Group SEZ Partnership

• Mahindra Group has collaborated with RIICO to develop a Special Economic Zone (SEZ) in Jaipur, with an anticipated investment of ₹10,000 crore.
• The SEZ will feature distinct zones for various industrial sectors, initially focusing on Information Technology (IT) and Engineering.

Gems & Jewellery SEZ and IT SEZ Developments

• Rajasthan has seen significant progress with the establishment of Gems & Jewellery SEZ and IT SEZ, both notified by the Government of India.
• Mahindra World City (Jaipur) Ltd. has attracted investments amounting to `3,120.00 crore.
• Notably, in the fiscal year 2016-17, exports from Mahindra World City reached around 686 crore, leading to the creation of direct employment for 8,316 individuals and indirect employment for 20,000 people.

Electronic Manufacturing Cluster and SEZs for Gems & Jewellery

• An Electronic Manufacturing Cluster has been established to encourage investments in Electronic System Design and Manufacturing (ESDM) in Karauli and Salarpur industrial areas within District Alwar.
• Rajasthan has also witnessed the establishment of two Special Economic Zones (SEZs) focusing on Gems & Jewellery at Sitapura, Jaipur, by RIICO.
• By December 2016, exports from these SEZs had surpassed 698.11 crore, leading to the generation of 11,000 employment opportunities.

Promoting Ceramic and Glass Industry

• Rajasthan boasts abundant raw materials for the Ceramic and Glass industry.
• RIICO has allocated 2,54,855 sq.m. of land to ceramics & glass units in Ghiloth near Neemrana to propel the sector forward.
• Additionally, RIICO has established a dedicated industrial area for the ceramic & glass sector in Sathana, Ajmer.

Initiatives for Textile and Apparel Sector

• "VASTRA - An International Textile and Apparel Fair 2016" was organized by RIICO in collaboration with FICCI in Jaipur from 20th to 23rd October 2016, showcasing the state's prowess in the textile industry.

Promoting Startups and Entrepreneurship

• In alignment with the Rajasthan Startup Policy, efforts have been made to promote entrepreneurship through startups in the state.
• Mini start-up fests have been organized at Udaipur and Kota, fostering a culture of innovation and business development.
• Financial assistance amounting to `77.20 lakh has been provided to 9 startup proposals, demonstrating the state's commitment to nurturing entrepreneurial ventures.

Index of Industrial Production

• Industrial production is a crucial metric for gauging economic performance. The Index of Industrial Production (IIP) serves as a vital indicator, reflecting the overall growth of industrial activities within an economy concerning a specific base year for comparison. 
• The IIP, which is updated on a monthly basis, encompasses various sectors such as Manufacturing, Mining, and Electricity, aggregating data from 294 items or product groups.

Performance Overview (2012-2015)

Oil and Gas

• During the year 2016-17 (up to December 2016), a total of 33 wells were drilled, surpassing the target of 30 wells. Cairn India Ltd. drilled 24 wells, Focus Energy Ltd. drilled 3 wells, OIL drilled 4 wells, and ONGCL drilled 2 wells.
• In the current financial year, Cairn India Limited produced 61.17 lakh metric tonnes of crude oil from the Barmer-Sanchore Basin. Approximately 480.47 MMSCM of natural gas was produced from the Jaisalmer and Barmer-Sanchore Basins by Focus Energy, ONGCL, and Oil India Limited. The State Government sanctioned 11 Petroleum Mining Leases for the exploitation of crude oil, heavy oil, and natural gas, and granted Petroleum Exploration Licenses for 21 blocks. Exploration is ongoing in 12 blocks, while 9 blocks are under relinquishment.
• Commercial production of crude oil began from the Mangla Field on 29th August 2009, and currently, 1,65,000 to 1,70,000 barrels of oil per day are produced from the Mangla, Bhagyam, Aishwarya, Saraswati, and Raageshwari fields.
• Rajasthan offers significant investment opportunities in the upstream, midstream, and downstream sectors. A total of 21 blocks have been identified over approximately 60,000 square kilometers in Rajasthan, covering four petroliferous basins: Jaisalmer Basin, Barmer-Sanchor Basin, Bikaner-Nagaur Basin, and Vindhyan Basin. Presently, 11 Petroleum Mining Leases and 12 Petroleum Exploration Licenses have been granted for the development of exploration and production activities.