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Rajasthan is located in Northwestern India and is the second largest Indian state. It is also one of the few states of India that show great contrast from one area to another. It is primarily an agrarian economy with agriculture accounting for one-third of Rajasthan's GDP. However, industry is rapidly growing as the state has developed a very conducive climate for investment.

Land area: 342,239 sq. km.
Population: 44 million
Capital: Jaipur
Per Capita Income: Rs 5,220
Inflation Rate: 11.5%

Rajasthan has numerous incentives for new industries, especially in the infrastructure sector. It also has good transportation and telecommunication facility. As one of the first to implement the Central Government’s new liberalization policies, Rajasthan has a very investor friendly climate.

Incentives:

• Investment subsidy of 15% (up to Rs 1,500,000) of fixed capital for small-scale units, NRIs and OCBs
• Investment subsidy of 20% (up to Rs 2,000,000) of fixed capital for 100% EOUs
• Investment subsidy of 20% (up to Rs 1,500,000) of fixed capital for agro-based industries
• Special package of incentives for auto units with investment of Rs 10 crore or more
• 10-year exemption from payment of octroi for units with investment of Rs 250 crore or more
• Sales tax exemption (up to 7 years) of 125% of fixed capital for new small-scale units
• Sales tax exemption (up to 7 years) of 100% of fixed capital for new medium-scale units
• Sales tax exemption (up to 11 years) of 100% of fixed capital for new electronics units