5- 6 Major Industrial and Service Sector Issues in Rajasthan | RAS RPSC Prelims Preparation - Notes, Study Material & Tests - RPSC RAS (Rajasthan) PDF Download

5. MAJOR INDUSTRIAL SECTOR ISSUES IN RAJASTHAN

Industrialization in Rajasthan has been a recent phenomenon, as prior to the independence the development of industries was restricted by the following factors:-

1. Lack of Interest by the rulers
2. Lack of technical know how
3. Lack of transport facilities.

RICCO has been established as an apex body for the development of industries in the state, with the following objectives:-

1. To develop the industrial areas throughout the state for small, medium and large industries.
2. Establishment of small/medium/large industries by obtaining the letter of intent/licence from the government.
3. To provide the financial help to industries.
4. Developing new entrepreneurs by providing them technical consultancy.
5. Minimize the regional variation in the industrial development in the state.

Major hurdles in the industrial development of the state are as follows:-

1. Shortage of manpower
2. Shortage of power & water resources
3. Shortage of skilled labour
4. Low level of technological development
5. Natural calamities
6. Geographical location of the state.

Industries of Rajasthan can be categorized into following based on the type of raw material:-

1. Agro based Industry
2. Forest Based industry
3. Livestock based industry
4. Mineral based industry

There is a regional variation in the industrial development of the state as the northern part with better communication network is more developed then the southern part of the state. Marusthali and Banger region of the state are the most economically backward regions of the state.

Following are the major Industries of Rajasthan:-

• Cotton Textile Industry: - First Cotton Textile mill was established in 1889 at Beawar. The location of cotton textile industry is based on the supply of raw material, fuel, chemicals, skilled and unskilled labour, and transport facility, market and capital resources.

Bio Technology

A new generation of biotechnology developed as a result of intensive work in India has opened up new opportunities for economic development in the country. The country is also rapidly emerging as a major market for biotech products. The small-scale sector is expected to play a major role in the growth of the biotech industry.

Rajasthan is very rich in bio resources. The state provides tremendous bio diversity, rarely to be found in any other State. Rajasthan is very rich in cattle breed also. State has highest livestock population and there is good potential in animal husbandry and genetic engineering. Thus, Rajasthan has great potential to create immense industrial activity in Biotechnology and modern Biotech products involving recombinant DNA based products and Bio Informatics.

To attract investment in BT sector, RIICO is considering developing state-of-art Bio Tech Parks at Jaipur, Jodhpur and Bhiwadi (Alwar). The infrastructure in terms of developed plots, continuous power, High Speed Data Com Facility, Roads, common testing facility etc. are being developed in Bio Tech Parks.

Investment Opportunities in Biotechnology

• Research and development in the cattle species improvement programme and Biotechnology incubation centres
• Bio-pesticides and bio-fertilizers
• Genetic improvement of seeds
• Genetic improvement of animal breeds
• Dry farming
• Treatment of industrial effluents
• Recycling/recovery of bio-products
• Waste management
• Bio fuels/energy
• Industrial enzymes
• Fermentation products for better yeast

Agro Based Industries

Rajasthan, being leading producer of bajra, barley, pulses, coriander, Cummins and a number of Ayurveda herbals, offers huge potential for agro-based industries. The government of Rajasthan has given utmost priority to and attention for development of agro-food parks. The following concessions are being provided to the units located in agro food parks developed by RIICO:

• Exemption of land and building tax
• Exemption of stamp duty
• Exemption of electricity duty for 5 years
• Public Utility Status
• Exemption from entry tax on raw materials
• Set off of sales tax on capital goods
• Set off of entry tax on capital goods
• Exemption of Mandi Tax

Mineral based Industries

Rajasthan is the county's second largest mineral producing state after Bihar. Abundant availability of minerals such as limestone, zinc concentrate, gypsum, fluorite, asbestos, calcite, wollastonite, jasper, garnets, marble, lead & tungsten concentrates, phosphate rock, clay, soapstone, sandstone, limestone and feldspar. Substantial quantities of lignite and natural gas have also been identified in the desert areas of the state. Rajasthan is already exporting wollastonite, soapstone and a variety of dimensional stones. Export oriented units are given a priority while granting mining leases.

Rajasthan is among the largest producers of cement in the country. Large reserves of clay and silica sand, raw materials for the ceramic and refractory industry, are available in the state. Further, the state has locational advantage as large north Indian markets for ceramics is easily accessible from the state. With large reserves of rock phosphate in the state, manufacture of phosphoric acid/DAP is a viable venture.

The discovery of natural gas in the state has opened up possibilities for additional investment in the chemical and ceramic sector.

There is also a good potential for locating new base metal deposits. Accordingly, beneficiation and smelting plants may be set up based on newly located deposits. Rajasthan also has enormous resources of Dimensional Stones that are widely spread all over the state.

6. MAJOR SERVICE SECTOR ISSUES IN RAJASTHAN

Information Technology and IT enabled Services

Software and services exports continued to remain on top of the IT industry's revenue. The export-driven software sector saw major long-term projects come to Indian ICT leaders and Indian Companies bagging a larger and larger share of the global outsourced business.

The state of Rajasthan offers huge investment opportunities in IT sector especially Its. Rajasthan State Industrial Development and investment Corporation Limited (RIICO) has developed state of art IT parks at Jaipur, Kota, Udaipur and Jodhpur to attract investment in IT sector. RIICO is also considering developing such IT parks at Bhiwadi (Alwar). The infrastructure in terms of developed plots, continuous power High-Speed Data Com Facility through satellite earth station, road etc. are being made available to the IT industries in IT parks.

The major industries are Electrolux, Ericsson, GE, Samcor, Instrumentation, Rajasthan Electronics & Instruments (REIL), Genus overseas, Allied Electronic, CompuCom, Cistems software, Lippi Data, Aksh Opt fibre etc.

An investor friendly IT policy is already in place and provides lucrative incentives to IT industries.

The Major Issues faced by Service Sector in Rajasthan are as follows:-

1. Our infrastructure is inadequate not only in the rural areas but also in the urban areas. For example, power shortage and traffic congestions are very common in Bangalore, the silicon city of India. These effect the quality of services provided.

2. Though service sector has been the fastest growing sector in the last decade and has contributed more than 57% of the GDP, it provides less than 25 % of the total employment.

3. India has great potential in the tourism sector. But there is a need to create proper setup for attracting tourists. Foreign tourists often get harassed and cheated in the hands of babus and officialdom, touts and conmen.