Rajasthan - Economy in transition

J

ust recently Rajasthan area,– India’s largest state in terms of land happened to be among the lowest rung states in terms of industries, investments and economic affairs. It struggled with many challenges and disadvantages – natural, historical and social. The state’s profile was blemished with feeble agriculture, low industrial output and poor literacy figures. Today, Rajasthan is fast transforming into a formidable economy with many industries growing at a faster pace.

State’s GDP stats: With a GDP of US$140 billion (201920), Rajasthan ranks at number 7 in the country and the growth rate is 5%. The per capita GDP of the state is US$1700. Agriculture contributes 25%, Industry, 28% while service sector contributes 47%.

Major sectors of economy:

A mineral-rich state, Rajasthan has a diversified economy. Agriculture, mining, tourism and gems & jewelry are its major growth engines.

Agriculture

Rajasthan is the largest producer of rapeseed, bajra, mustard and wool in India, second-largest producer of oilseeds, spices and milk and third largest producer of soybean and course cereals. Tourism

Tourism is Rajasthan’s exchequer’s main contributor. The common destinations include palaces and forts, lakes and desert spread across the state. Tourism accounts for 16% of state’s domestic product. The state administration has converted many palaces and forts into heritage hotels that has increased the employment in hospitality industry tremendously.

Mining & Minerals

Around 79 types of minerals are available in the state which include asbestos, barytes, feldspar, fireclay, fluorspar, iron ore, ochre, pyrite, silver, phosphate fluoride, wollastonite, rock phosphate, copper, lead, zinc, gypsum, granite, marble, sand stone, dolomite, calcite, emeralds and garnets.

Cement

With around 24 major cement plants, the state’s total capacity of Cement production is 55 million ton per annum. Rajasthan has about 17% share in cement grade limestone reserves in India.

Other major secotrs are:

• Textile

• Auto and auto components

• Gems & Jewelry

• Chemicals

• Ceremics

• Salt