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
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