BOOSTING EXPORTS AS GATEWAY TO ECONOMIC RESURGENCE …industries.rajasthan.gov.in/content/dam/industries/CI/... · 2019-12-20 · Long term trends in exports over a ten year horizon

Office of the Commissioner, Industries & Secretary, CSR

Rajasthan, Jaipur

BOOSTING EXPORTS

AS GATEWAY TO

ECONOMIC

RESURGENCE

IN RAJASTHAN

Government of Rajasthan

Office of the Commissioner, Industries & Secretary, CSRRajasthan, Jaipur

BOOSTING EXPORTS AS GATEWAY TO

ECONOMIC RESURGENCE IN RAJASTHAN

Government of Rajasthan

I N D E X

Background 03

Export Scenario 05

Sectoral Contribution to Exports 07

Key Exports Sectors 08

Export Infrastructure in Rajasthan 22

Strengths of Rajasthan in Terms of Export Potential 29

Policy Framework for Exports 32

Exports from Rajasthan at A Glance 36

Background

Rajasthan Economy is the 8th biggest economy in India with the Net State Domestic Product (NSDP) of 641940 Crores in 2017-18. The economy of the state is dependent on agricultural, industrial, tourism, and mining sectors. The Economy in the state of Rajasthan gets its revenue from the industrial sector which accounts for around 32.5% in the state's economy. In Rajasthan, the main industries are of rugs, vegetable oil, woolen goods, dyes, and textile. The private sector industries in the state include stone, footwear and leather, glass wares and ceramics, steel, cement, and chemical. The heavy industries in Rajasthan include the production of rolling railway stock and zinc and copper smelting. Rajasthan contributes 15% to the total cement production in the country. It also contributes 10% to the total salt production in India.

Rajasthan has traditionally been strong in exports of handicrafts, gems and jewellery, dimensional stones, agro products, and textile products. The top five export items from Rajasthan accounting for nearly two-thirds of exports from the State are textiles (including readymade garments), gems and jewellery, engineering goods, chemical and allied

products (including tyres), and handicrafts. Agro and food products, dimensional stones comprising marble, granites and articles of stone mica, metals (ferrous and non-ferrous), and electronics and computer software are also important sectors having a share of more than 5% each in Rajasthan's exports.

In terms of services exports, tourism and hospitality is a key segment in Rajasthan and has immense potential for the State. In fact, Rajasthan has been steadily gaining prominence in the global markets as an important tourist destination of India. In 2017, about 10.18 million foreign tourists arrived in India and Rajasthan was host to about 6% of this number.

Based on the Vision for exports from the State, the export target for Rajasthan is projected at Rs. 1.2 lakh crore covering merchandise and services. This target has been derived based on a bottoms-up approach, and has been drilled down to the sectoral level. The detailed break-up of segment-wise targets under two different scenarios, viz. conservative and optimistic, have been highlighted as below.

Target For Exports

BOOSTING EXPORTS AS GATEWAY TO ECONOMIC RESURGENCE IN RAJASTHAN

03

04

Export Targets for Rajasthan (Rs. Cr.)

Segments Rajasthan's Rajasthan's Export Rajasthan's Export

Export 2016 2022 Baseline 2022 Target

Textile and Readymade Garments 6,392 11,104 12,131

Dimensional Stones Marble, Granites and 2,904 7,454 9,528

Articles of Stone, Mica, etc.

Gems and Jewellery 5,345 10,933 14,556

Engineering 4,754 10,806 12,943

Chemical and Allied Products 4,145 7,585 10,599

(including Tyres)

Handicrafts 3,343 5,946 6,520

Carpet (Durries) 569 908 1,260

Animals Agro and Food Products 3,094 4,695 9,261

Metals -Ferrous and Non-Ferrous 1,777 3,451 6,903

Plastics and Linoleums 636 640 1,106

Drugs and Pharmaceuticals 398 847 937

Minerals - Mineral Fuels, Mineral Oils and 31 982 1,965

Products, Bituminous Substances, Mineral

Waxes, Ores, Slags and Ash

Leather and Leather Products 230 240 419

Wool and Woollens 78 119 378

Others 68 68 68

Tourism 10,236 15,181 24,939

IT/ITES 2,305 4,184 8,369

Rajasthan's Exports - Merchandise 33,764 65,779 88,571

Rajasthan's Exports - Services 12,541 19,366 33,308

Rajasthan Total Exports 46,305 85,145 1,21,879

05

Exports Scenario

India's export basket was worth Rs. 17 lakh crore in 2015-2016 and the States of Gujarat, Maharashtra, Tamil Nadu and Karnataka contributed to bulk of the exports. The top two states of Gujarat and Maharashtra contributed close to 50% of the total exports3. Rajasthan, the largest state in geographical area terms, contributed about 2% to India's export basket. The State is abundantly rich in natural resources, has ready availability of labour pool and is also historically endowed with wealth. Clearly, the export potential of this state is yet to be fully realized.

The landlocked nature of the State has significantly restricted its access to a wider market as compared to the better performing states like Gujarat, Maharashtra and Tamil Nadu, all of which have a long coastline. Barring this obvious disadvantage, Rajasthan shares its borders with 6 states and acts as a direct connect between the manufacturing hubs in northern part of the country and the major ports in western part of the country. With its proximity to both these regions, the State is a promising investment destination, and both the State and Central Government are actively promoting improvement in output and exports from the State.

Total merchandise exports from India have grown from Rs. 8.40 lakh crore in 2008-09 to Rs. 17 lakh crore in 2015- 16, witnessing a CAGR (COMPOUND ANNUAL GROWTH RATE) of 11% . During the same period, exports from the State of Rajasthan registered a CAGR of 13% to amount to Rs. 36,047 crore in 2015-16. Exports during 2017-18 of India are at US $ 302.84 Billion as compared to 275.85

during 2016-17 registering CAGR of of 9.78 per cent in dollar terms vis-à-vis 2016-17. Exports from Rajasthan increased to Rs. 46476 crore in 2017-18 from Rs.40776 crore during 2016-17 witnessing CAGR of 13.98%.The high growth rate experienced after the economic slowdown in 2008- 09 has significantly reduced as the export scenario is getting competitive and exporters are facing issues in traditional markets of Europe and the USA.

A y-o-y comparison of performance indicates that the growth rate of exports from the State of Rajasthan has fared better than the national average in most years save for 2013- 14.

On the export front, Rajasthan is traditionally strong in handicrafts, gems and jewellery, dimensional stones, agro and food products, textile products etc.. However, after the peak achieved in 2012-2013, the growth has tapered off significantly.

Long term trends in exports over a ten year horizon (FY05- FY16) indicate a considerable improvement, with exports growing from Rs. 8,002 crore in FY05 to Rs. 36,047 crore in FY16, recording a CAGR of 14.7% and to Rs 46476 in 2017-18.

Indications of a slowdown in the second half of the period under consideration. The CAGR of 8.7% recorded during the period FY11 to FY16 is almost half of the 14.6% CAGR witnessed in the earlier period of FY05 to FY10.

In terms of services exports, tourism and hospitality is a key segment in Rajasthan. The segment has immense potential for earning foreign exchange revenue. In fact, Rajasthan has been steadily gaining prominence in the global markets as an important tourist destination of India. In 2004, 9.72

06

lakh foreign tourists arrived in the State and this number increased to 15.26 lakh in 2014 and 16.10 lakh in 2017. Rajasthan receives significant number of European tourists, with the top three countries being France, the UK and Germany. In 2015, about 233 lakh foreign tourists arrived in India and Rajasthan was host to about 6%5 of this number.

Apart from tourism and hospitality, the second major contributor to service exports from the State is IT and ITeS sector. Exports from the sector have increased from Rs. 1,172 crore in FY13 to 2,305 crore

in FY16, contributing 0.3% to national exports and . With adoption of emerging technologies in recent years, the sector has become one of the fastest growing sectors in the State.

On account of increasing focus on research and development in ESDM, greater support to the MSMEs, and promotion of entrepreneurship through the Rajasthan eGovernance and IT/ITeS policy 2015, the IT and ITeS sector is expected to continue the upward growth trend.

Figure 1 : Total Merchandise Exports^ from Rajasthan

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MERCHANDISE EXPORT

MERCHANDISE EXPORT

07

Sectoral Contribution to Exports

The top five export items from Rajasthan accounting for nearly two-thirds of exports from the State are textiles (including readymade garments), gems and jewellery, engineering goods, chemical and allied products (including tyres), and handicrafts. Agro and food products, dimensional stones comprising marble, granites and articles of stone mica, metals –ferrous and non-ferrous metals, and electronics and computer software are also important sectors having a share of more than 5% each in Rajasthan's exports.

Over the past several years, the share of major commodities in Rajasthan's exports has not changed much, with agro and food products being the only exception. The agro and food products sector accounted for 37% of Rajasthan's exports during FY13. However, the crash in crude oil prices and subsequent drag on hydraulic-fracturing has impacted the export of Guar gum from India, which contributed to bulk of agro and food products exports from Rajasthan.

This impact is clearly visible in the share of exports of agro and food products crashing to 9% in 2015-16.

Figure 2 : Sectoral Contribution to State Exports (2015-16)

12%

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Figure 9 : Sectrol Contribution to State Exports (2017-18)

Textiles

Agro & Food Products

Gem & Jewellery

Engineering

Metal (Ferrous)

Metal (Non-Ferrous)

Dimensional Stones

Mineral

Electronics & Computer Software

Wool & Woollens

Chemical & Allied

Drugs & Pharmaceuticals

Plastic & Linoleums

Handicrafts

Leather & Leather products

08

Textiles and Garments (including Handlooms)

Textiles is one of the leading sectors of exports from the State of Rajasthan. In 2015-16, textiles export from Rajasthan amounted to Rs. 4,812 crore, accounting for nearly 3.7% of the total exports of these products from India. Exports of these products from Rajasthan registered a CAGR of 11.7% during the period FY05 to FY16. This was lower than the CAGR of 15.0% recorded for India's exports of textiles during the same period. Textile exports from Rajasthan recorded a higher CAGR of

14% during the period FY11 to FY16, as compared to a CAGR of 6.3% during the previous period FY05 to FY09. Exports in Textiles touched a peak of Rs 5667 Crores in 2017-18.

Analysis for Textiles Industry

Manmade staple fibres contributed close to Rs. 1870 crore to Rajasthan's exports during FY16. This is the single largest export item under the textiles segment. The State is among the largest producers/ exporters of woven fabrics in India. Among woven

KEY EXPORT SECTORS

Figure 3 : Trend in Export of Textiles from India and Rajasthan

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Textile

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09

fabrics, Rajasthan is the largest exporter of woven polyester fabrics, mainly/solely mixed with viscose rayon from India and accounted for close to 40% of India's export of this item in FY16.

The major destinations for export of manmade staple fibres are the textile manufacturing hubs of Egypt, UAE, Turkey, Morocco, and Iran. The export of these items to the western countries are facilitated through Nhava Sheva and Mundra ports, while the exports to Bangladesh and other eastern textile destinations take place through Petrapole land port.

Cotton Yarn>85% is the second most significant textile export from Rajasthan with a value of Rs. 560 crore in FY16. Significant value addition takes place in the State and yarns of various linear densities are exported to markets such as Bangladesh, China etc. Eastern European markets such as Poland, Germany

are also important export destination for this product.

Other major textile exports from the State include impregnated, coated or laminated fabrics), other made textile articles such as bed / toilet / kitchen linen, furnishing articles etc). These items accounted for close to Rs. 670 crore of exports in FY16.

In 2015-16, Rajasthan exported Rs. 1,579 crore worth of readymade garments, accounting for 1.4% of the total readymade garment exports from India. Readymade garments have a share of 4% in the total exports from the State. Exports of garments from the State recorded a CAGR of 13% during the period FY05 to FY16 — same as the CAGR for exports of these products from India during this period.

29173 37775 39833 38493 49517 51999 64843 69599 89498 101058 109984 116554 107698

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Figure 4 : Trend in Export of Garments from India and Rajasthan

10

Analysis for Garments Industry

Readymade garments constitute close to 25% of total textile exports from Rajasthan. Of these, non-knitted garments are the major contributors. These finished garments are majorly exported to the developed nations such as Japan, the USA, the UK and Spain. These items are mainly exported through Nhava Sheva sea port, cleared through ICDs - Faridabad, CFC Startrack Dadri, and airlifted from Delhi and Jaipur. Bulk of the export happens in only a few items of readymade garments such as – women's, girl's dresses of artificial fibre, women's, girl's dresses of cotton, women's, girl's shirts / blouses of artificial fibre, women's, girl's shirts / blouses of cotton and women's, girl's track suits / ski suits / swim wear.

Gems and Jewellery

Gems and Jewellery (G&J) is among the top contributors to Rajasthan's exports with a share of around 15% in the State's exports. G&J exports from the State amounted to Rs. 5,345 crore in FY16, and its contribution to the national exports stood at 2.1% during the year. Exports in in this sector was Rs 5264 Crores in 2017-18.The share of Rajasthan in G&J exports from India is on the rise for the past few years.

The export of G&J from Rajasthan has registered a CAGR of 12% during the period FY05 to FY16. Exports at the national level witnessed a higher CAGR of 14% during the same period. However, CAGR during the last 5 years (FY11-FY16) for Rajasthan was 15% – almost thrice the CAGR for exports at the national level. The y-o-y growth for exports of G&J from Rajasthan has been faster than

Figure 5 : Trend in Export of Gems and Jewellery from India and Rajasthan

61720 68720 72264 79174 128026 197976 224417 236542 250141 252120 257196 284202 296423

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the national average, albeit a lower base signals higher potential.

Analysis for Gems and Jewellery Industry

The major G&J export items from Rajasthan are articles of jewellery and parts containing precious metal and mounted precious / semi-precious stones not diamond – not worked/partially worked. These two segments, valued at Rs. 4,900 crore, contributed close to 90% of total G&J export from Rajasthan in FY16.

The major ports for handling these items are Jaipur AC and SEZ Sitapura. The top destination markets for these items from Rajasthan are Hong Kong, the USA, the UK, Thailand and Singapore, which are also among world's largest markets for G&J trade.

Close to half of the exports in G&J is registered under precious, semi-precious stones unworked/ partially worked and rubies, sapphires, emerald

worked but not set indicating scope for value addition. There is significant exports under the category of jewellery and parts of precious metals including silver and other precious metals.

Dimensional Stones

Dimensional stones are one of the key export items from the State, and had a share of more than 8% in Rajasthan's total exports during FY16. The total export of dimensional stones from Rajasthan stood at Rs. 2904 crore in 2016, accounting for 11% of India's total exports of these products. The total exports in this sector increased to Rs 3172 Crores in 2017-18.

Rajasthan's exports of dimensional stones recorded a CAGR of 18% during the period FY05-FY16. The CAGR of 25% recorded during the past 5 years (FY11-FY16) is significantly higher than the CAGR of 18% registered during the previous four years (FY05- FY09).

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Dimension Stones


Figure 6 : Trend in Export of Dimensional Stones from India and Rajasthan

Analysis for Dimensional Stones Industry

In the category of dimensional stones, sandstone is the single largest export item from the State of Rajasthan. In FY16, the State exported Rs. 900 crore worth of sandstones. The export market is currently narrow and more than 90% of the exports are routed to the UK, indicating a clear case for geographic diversification. The ICDs of Kota, Kanakpura and Mundra sea port handle bulk of exports of sandstones from Rajasthan.

Rajasthan also exports other monumental or building stones, porphyry and basalt to the UK. In FY16, nearly Rs. 310 crore worth of these items were exported from the State.

Natural Steatite, crushed/powdered is exported to South East Asian markets such as Indonesia, Thailand, as also to the Middle East and African markets (UAE, Nigeria).

Another significant export item is marbles and travertine with exports of nearly Rs. 100 crore in FY16. The major markets for this product are China, Hong Kong, Italy, Egypt, etc. More than 50% of India's marble export is from Rajasthan. Quartz, lump/powder and granite, merely cut into rectangular blocks/slabs are also significant items of exports from Rajasthan under the segment of dimensional stones

After significant value addition, marbles and granites are exported from Rajasthan in the form of tiles/cubes, etc. These worked monumental stones - marbles, travertine blocks / tiles / polished and granite blocks / tiles / polished contributed Rs. 770 crore to the export of dimensional stones from

Rajasthan in FY16. The export destinations for these products were Turkey, UAE, the USA, Egypt, etc

Handicraft exports contributed Rs. 3,343 crore to the export basket of Rajasthan in FY16, accounting for 9% of the State's exports. Total exports of handicrafts from the country was Rs. 29,347 crore in 2016, and Rajasthan was one of leading contributors with a share of 11.4%. Share of Rajasthan in India's handicraft exports has been traditionally high.

The export of handicrafts from Rajasthan registered a CAGR of 13% during FY09-FY16. This was lower than the CAGR of 15% for handicraft exports from India as a whole, indicating the better performance of other competing states. The total exports in this sector increased to Rs 3701 Crores in 2017-18.

Carpets

Exports of carpet from Rajasthan has witnessed significant growth in recent years and recorded a CAGR of 19% during FY11-FY16. During the same period, total export of carpets from India posted a CAGR of 11%. In FY16, Rajasthan's carpet exports amounted to Rs. 569 crore, which was 2% of the entire exports from the State. Rajasthan is a prominent State for export of carpets and contributed more than 5.4% to the country's export of carpets in FY16. During the period 2017-18 the total exports in Carpets nearly doubled to 1095 Crores.

Handicrafts

12

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Jaipur and its adjacent districts are the major areas for carpet manufacturing. Bikaner, Jaipur and Ajmer are the major centres for hand knotted carpets. The carpets are available both in cotton and silk fabric.

Durries is a unique type of carpet made in Rajasthan, and is currently one of the best-known products of the State.

Figure 7 : Trend in Export of Handicrafts from India and Rajasthan

Figure 8 : Trend in Export of Carpets from India and Rajasthan

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Agro and Food Products Agro and food products are among the top export items from Rajasthan, with a share of nearly 9% in the State's total exports. The major agro products of the State include oilseed, rapeseed, mustard, soya bean, coarse creeds and spices. In 2013, agro and food products were the largest export item for Rajasthan contributing in excess of 37% to the total exports from the State.

Growth in the sector was supported by increased exports of guar gum — an extract of guar seeds used in the petrochemical industry for fracturing purposes. However, the fall in crude oil prices have adversely impacted this sector, with the exports falling by nearly five times from Rs. 14517 Cr in FY13 to Rs. 3094 Cr in FY16. Owing to this, the share of Rajasthan in total exports of agro and food products from India has declined from 7.2% in FY13 to 1.5% in FY16. The total Exports in this Sector stood at 4204 Crores during 2017-18.

Analysis for Agro and Food Products Industry Since 2013, there has been a marked decline in exports from Rajasthan of all items under agro and food products. Apart from guar gum extract – mucilage and thickeners which constitute close to 85% of exports in this segment, other items have also registered a fall in export value. Oil cakes are the second largest export item under this category for the State. The oil cake of rape seed - residue of rape seed / colza seed had an export value of Rs. 230 crore in FY16 — a drastic reduction from Rs. 640 crore in FY15. The major destination markets for extract of rape seed are South Korea, and South East Asian countries (Viet Nam, Thailand, and Indonesia).

Cereals is another segment where there was a significant drop in exports from Rajasthan. Barley and wheat and meslin exports which were worth Rs. 520 crore in 2015 came down to Rs. 30 crore in

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Figure 9 : Trend in Export of Agro and Food Products from India and Rajasthan

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2016. Other agro and food products that are exported significantly from Rajasthan include oil seeds, especially sesame seed oil seed and ground-nuts (shelled) and products.

Chemical and allied products including tyres are among the leading items of exports from Rajasthan, contributing in excess of 11% to the total exports from the State in FY16. The total export of these products from Rajasthan was Rs. 4,145 crore in FY16 and Rs 4231 Crores in 2017-18..

While the share of Rajasthan in the total exports from India is mediocre, it has been gradually increasing from 1.5% in FY11 to 2.6% in FY16.

Chemical and Allied Products (including Tyres)

During FY05-FY16, Rajasthan's exports of these products registered a higher CAGR of 16%, as compared to the CAGR of 15% for exports from the entire country. The CAGR for exports of these products from the State has been 25% during the past five years (FY11-FY16). This is more than double the CAGR of 11% registered during the previous four years (FY05-FY09). This is in sharp contrast to the trend witnessed at an all India level wherein the CAGR of 13% during the period FY11-FY16 is lower than the CAGR of 21% recorded during FY05-09. CS analysis.

Analysis for Chemicals and Allied Products (incl Tyres) Industry

Under this category, tyres for automobiles

Figure 10 : Trend in Export of Chemicals and Allied Products (incl Tyres)from India and Rajasthan

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constituted close to Rs. 1370 core of exports in FY16. Of these, export of new pneumatic tyres of rubber, with herring-bone or similar tread, for agricultural or forestry vehicles and machines is the single largest export item with an export value of around Rs. 980 crore in FY16. Heavy vehicle tyres such as new pneumatic tyres of rubber, used on buses or lorries also have significant exports.

Apart from tyres for automobiles, tanning, dyeing extract, pigment, etc are also exported from Rajasthan. The export in this segment is concentrated among a few products such as synthetic organic colouring matter, and inorganic colouring matter.

Engineering Products

Engineering products accounted for more than 13% of the exports from Rajasthan in FY16. Value of exports of engineering products from Rajasthan stood at Rs. 4,754 crore during the year and Rs 7350 Crores in 2017-18.

The share of Rajasthan in the total engineering goods exports from India is meagre, but has witnessed a gradual upward movement – from 1.1% in FY11 to 1.6% in FY16. During the period FY05-FY16, exports of these products from Rajasthan registered a lower CAGR of 19%, as compared to the CAGR of 20% witnessed by exports at an all-India level. Export growth in the past 5 years (FY11-FY16) has slowed down

Figure 11 : Trend in Export of Engineering Products from India and Rajasthan

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significantly as compared to the previous 4 years (FY05-FY09), with the CAGR in the former period being 20%, and that in latter being 49%. This trend is in line with the trend for total engineering goods exports from India wherein CAGR during the FY05-FY09 period was much higher at 36%, than the CAGR of 12% during the period FY11-FY16.

Analysis for Engineering Products Industry

The export of engineering products from Rajasthan is well diversified. At a 2 digit HS Code level, there are 4 items that constitute more than half of engineering products exports from Rajasthan. These are vehicles, engines, transmission parts and other auto and machine parts), electrical and electronics equipment and optical, photo, technical, medical, etc apparatus. These items contributed close to Rs. 3,270 crore to exports of engineering products from Rajasthan in FY16, registering a y-o-y growth of 18%.

Automobile parts including spare parts is the single largest export item classified under engineering products. There is also significant exports of parts for diesel engines, transmissions for motor vehicles and transmission shafts, including cam shafts and crank shafts). Other ancillary items such as ball bearing and parts, parts of air conditioners constitute the remaining auto component/ parts exports from the State.

Machinery, mechanical appliances and parts accounted for close to Rs. 1286 crore of engineering products exports during FY16. Tapered roller bearings was the single largest exported item

in this category. Other ball or roller bearings, parts of air conditioning machine and crushing / grinding machines and parts were the other major exported items.

Rajasthan exported electrical and electronics equipment worth Rs. 1114 crore in FY16. Major items of export under this category were parts of telephone handsets and equipment), other electric conductors over 1000 volts, other electric conductors less than1000 volts, liquid dielectric transformers, parts of electric switches, connectors, protectors etc.

The State has 79 different types of major and minor minerals, 57 of which are mined currently. Rajasthan accounts for 11.5% of India's total mineral production. Copper, zinc, lead and silver are some of the major metallic minerals produced in Rajasthan whereas petroleum, limestone, mica, gypsum and silica are some of the major non-metallic minerals produced in Rajasthan.

Major mineral products exported from Rajasthan include copper ores and concentrates, zinc ores and concentrates, petroleum oils and limestone. Exports of mineral products from Rajasthan have fallen significantly from Rs. 2916 Cr in FY11 to Rs. 31 Cr in FY16. While exports of mineral products from India have registered a robust CAGR of 11% during the period FY06 to FY16, the exports from Rajasthan have recorded negative CAGR of (-) 34%. The Exports in this category have again picked up in 2017-18 which stood at Rs nearly 139 Crores.

Mineral Products

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Metals (Ferrous and Non-Ferrous)

IT, ITeS and Electronics

Rajasthan exports iron and steel products, copper products and unwrought zinc and lead. Export of metals (ferrous and non-ferrous) had a share of 5% in the export basket of the State of Rajasthan in FY16. Metal exports from the State were valued at Rs. 1,777 crore in FY16, which is 1.5% of the total exports from India and increased drastically to Rs 5000 Crores.

While export of metals from India registered a CAGR of 6% during FY11 to FY16, the exports of metals from the State of Rajasthan have witnessed a negative CAGR of (-) 17%. Ferrous and Non- Ferrous metals have a 40%- 60% split in total metal exports from Rajasthan.

IT and Electronics sector of Rajasthan contributes

about 5% to the State's exports. At the national level, IT and ITeS segment has shown a growth rate of about 12% in FY15. Rajasthan contributes about 0.3% to the national IT and ITeS exports, which in value terms is about Rs. 2305 crore.

Rajasthan exported Rs. 78 crore worth of wool and woollen products in FY16, accounting for 6.7% of total exports of these products from India and less than 1% of Rajasthan's total exports. This figure reached to Rs 91 Crores in 2017-18.Woollen carpets are an important export commodity for the State.

In spite of being the largest wool producer in the country, the share of exports from Rajasthan remains low at the national level. With a share of 30% in total wool production in the country (as per last available data in 2012), Rajasthan's wool production is twice that of the nearest ranked state,

Wool and Woollens

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Figure 12 : Trend in Export of Mineral Products from India and Rajasthan

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Figure 13 : Trend in Export of Metals (Ferrous and Non- Ferrous) from India and Rajasthan

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Figure 14 : Trend in Export of Wool and Woollens Products from India and Rajasthan

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Karnataka. The States of Punjab and Haryana have the most number of wool processing units in the country.

Exports of wool and woollens from Rajasthan have fared better in the past 5 year period (CAGR: 36%) than the period from FY05 to FY09 during which exports registered a negative CAGR of (-) 4%.

Leather and leather products contribute about 1% to the State exports. The popular leather products of the State are juttis and mojris. Exports of these products from the State were valued at Rs. 230 crore

Leather and Leather Products

in FY16 and nearly 297 Crores in 2017-18.

The total exports from India in this sector registered a CAGR of 10% during FY05-FY16, and the exports from Rajasthan followed suit with a 25% CAGR, albeit on a lower base. Rajasthan's share in national exports has been increasing over the past few years.

The total export of plastics and linoleums from Rajasthan was Rs. 636 crore in FY16 and it accounted for less than 2% of the export basket of the State. The share of Rajasthan in the total exports of plastics and linoleums from India continues to be

Plastics and Linoleums

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Figure 15 : Trend in Export of Leather and Leather Products from India and Rajasthan

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low and was 1.9% in FY16. However, Rajasthan's exports of these products are growing at a significant pace and have registered a CAGR of 29% during FY05 to FY16, helping the State to increase its share in India's total exports from 0.4% to 1.9% during this period. During the same period, the total export from India of plastic and linoleums

registered a CAGR of 12%, although on a high base. The CAGR for export from Rajasthan in the past 5 years at 36% (FY11-FY16) has surpassed the CAGR of 27% in the previous 4 years (FY05-FY09). The total Exports in this sector reached nearly 923 Crores during 2017-18.

Figure 16 : Trend in Export of Plastics and Linoleums from India and Rajasthan

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Rajasthan Industrial Development and Investment Corporation Ltd., (RIICO) is a government company, wholly owned by government of Rajasthan, India. RIICO is the apex organization for fostering growth of industrialization in Rajasthan. RIICO provides industrial lands and variety of technical inputs, by way of technological and managerial services, like relevant technical information, project briefs, project profiles, project reports, techno-economic feasibility reports, market surveys, financial and managerial consultancy and even diagnostic studies for projects rehabilitation. RIICO also provide financial assistance in project loan, equipment finance scheme (EFS), working capital term loan, medium term multipurpose loan. Flexi loan for hotels, hospitals and nursing homes, medium term loan against securitization of fixed assets etc.

(RIICO) acquires land for development of industrial areas and parks at different places in the State depending upon the potential of industrial development. RIICO has so far developed 324 industrial areas where around 34000 industries are in production. It has developed more than 300 industrial areas across various parts of Rajasthan. These industrial areas are developed with water, power, roads, shops and telecommunication facilities.

The special Industrial Complexes / Parks have been developed in the State by RIICO to meet the requirement of special industries. Few of the prominent special purpose industries parks are:

EXPORT INFRASTRUCTUREIN RAJASTHAN

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Sl. No. Product & Segment Cities and Towns

1 EPIP (Export Promotion Industrial Parks) 3 Jaipur, Boranada (Jodhpur) & Neemrana

2 Handicraft Park (2) Shilpgram (Jodhpur & Jaisalmer)

3 Agro Food Processing/ Agro Food Park(4) Ranpur (Kota), Boranada (Jodhpur), Sriganganagar & MIA (Alwar)

4 Leather (1) Manpur Macheri at Jaipur

5 Apparel Park (1) Mahala at Jaipur

6 Stone Park (2) Mandore at Jodhpur and Dholpur

7 IT Park with Special Infrastructure (4) Jaipur, Jodhpur, Kota & Alwar with incubation centre

8 New IT Parks provided land to developers Kant Kanwar (Jaipur), Bhiwadi (Alwar), Boranada (Jodhpur)

9 Textile Parks with special Infra set-up of & Bhilwara, Chittorgarh & Jodhpur Private,facilities for Textile units (3+2)=5 Pali and Jaipur

10 Bio-tech Parks (3) Jaipur, Jodhpur and Bhiwadi

11 Auto Components, Cables & Garments Patodi (Chopanki), Autozone at Patodi (Bhiwadi)

12 Industrial Complex Mazrakatha at Neemrana known as the Japanese Zone

RIICO plays a catalytic role in industrial development of Rajasthan. Keeping in view the specific requirements of export-oriented units, RIICO has given emphasis for development of special parks for setting up of such units. RIICO on behalf of Govt. of Rajasthan is providing and developing these basic infrastructure facilities for the exporting units.

§Export Promotional Industrial Parks

§Special Economic Zones

§ASIDE Scheme (Assistance to state for

developing export Infrastructure and allied activities)

§AIR Cargo Complex (ACC) and inland container Depot (ICD)

Export Promotional Industrial Parks (EPIPs)

The EPIPs have been developed / are being developed under the scheme of department of Commerce, Govt. of India. In EPIPs only those units

that undertake to export a minimum of 33% of their production, are allotted land. Brief details of these EPIPs are as under;

EPIP at Sitapura, Jaipur

The first EPIP of the state was developed by RIICO at Sitapura, Jaipur over an area of 361 acres (409 plots). The park is functional since march-1997 with 208 units (230plots) under production and 62 plots (28 units) are under construction.

EPIP at Boranada, Jodhpur

The second EPIP of the state has been developed by RIICO at Boranada, Jodhpur over an area of 207 acre on which an expenditure of approximately Rs.18 crore has already been incurred. Plots are allotted mainly to handicrafts units. All basic infrastructure facilities are available since July 2003.

EPIP at Neemrana, Alwar

The third EPIP of the state is being developed at Neemrana located on NH-8 (Delhi- Jaipur Road). The park companies of 218 saleable industrial plots of which 210 plots have been allotted. This EPIP is being developed with an estimated project cost of about Rs.35 crore and expenditure of Rs.24 crore has already been incurred.

Special Economic Zone (SEZs): The wings of change

SEZs are specially delineated duty free enclaves treated as a foreign territory for the purpose of

industrial, service and trade operations, with exemption from custom duties and a more liberal regime in respect of other levies, foreign investment and other transactions. Domestic regulations, restrictions and infrastructure inadequacies are sought to be eliminated in the SEZ for creating a hassle free environment. The SEZ scheme seeks to create a transparent system by introducing simplified procedures for enhancing productivity and making it easier to do business. SEZs envisages key role for the state government in export promotion and creation of infrastructure, investment and employability. Benefits derive from investment and additional economic activity in the SEZ and the employment generated has a multiplier effect on the economy.

SEZs have been driving industrial growth in India. This is an established fact today that for a business to be globally competitive and eco system has to evolve where all the key elements like infrastructure, resources, logistics, hassle free environment etc. need to be provided. SEZs act as a catalyst in providing these benefits to business.

Rajasthan government has been very proactive for the growth of industries in the state. It has network of support organization like Rajasthan state industr ial development and investment corporation (RIICO), Bureau of Investment Promotion (BIP), and the Rajasthan Finance Corporation (RFC) amongst other.

The state has adopted the Public Private Partnership model very successfully for the implementation of the SEZ projects in the state. Presently there are four operational SEZs in Rajasthan, while three of these are state owned by

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Rajasthan state industrial development and investment corporation ltd. (RIICO). The other one is joint venture between the RIICO and Mahindra & Mahindra.

Among those in the pipeline are six SEZs at advanced stages of formal approval from the Govt of India and nine that have in principal approval. The details of the these four SEZs are as below, of these three SEZs have been developed / are being developed by RIICO, The brief details of these SEZs are as under;

§SEZ for Gems & Jewellery units at Sitapura, Jaipur (Phase-I): The SEZ for Gems & jewellery units (phase I), has been set up at Sitapura, Jaipur. It is planned over 21.50 acres of land. All of the 51 Plots planned have already been allotted. Roads, drainage, boundary wall work and power supply/ street light work and other basic infrastructure facilities have been developed.

§SEZ for Handicrafts units at Boranada, Jodhpur: The SEZ for handicraft units at Boranada, Jodhpur has been planned over 180.94 acres of land (291) plots.

§SEZ for GEMS & jewellery units at Sitapura, Jaipur (Phase-II): This SEZ for GEMS 7 jewellery units at Sitapura (phase-II), Jaipur has been planned over 89.39 acres of land (190 plots).

§Public-Private Partnership for SEZ: RIICO on behalf of the state government, is also promoting its first multiproduct SEZ in PPP mode on Jaipur-Ajmer National Highway. The SEZ shall be developed on 2500 acres of land

and the domestic tariff area will be developed on 550 acres of land. In the phase–I government of India has approved IT/ITes SEZ, Handicrafts SEZ and light engineering SEZ. RIICO has also developed theme based parks which includes , IT parks at Jaipur, Jodhpur, Kota & Udaipur; EPIP at Jaipur and Jodhpur: Agro food parks at Kota, Jodhpur & Sri Ganganagar; Apparel Park at Jaipur; Bio-Tech Parks at Jaipur , Jodhpur and Bhiwadi.

Rajasthan is mainly famous for its rich heritage – its history, the Maharajas and their palaces. But the state is more than just a tourist destination, state is now host to a number of small and medium enterprises alongside some major industrial units that have huge export profits and they have done well in the desert state. They are textiles, agro and food products, gems and jewellery, marble, handicrafts , readymade garments, carpet and durries and gem stones.

A brief detail about some of these clusters is as follows;

Gems & Jewellery

With a history of dating back more than two and half centuries, the internationally recognized pink city of Jaipur is still a hot spot in the gems and Jewellery sector. From manual processing to value added branded products, the industry has grown, keeping pace with the changing trends. With over 2,00,000 peoples engaged in the industry, Rajasthan accounts for Rs.1650 crore of the total $17 billion worth of Indian export of gems and jewellery. With more than 1300 exporters in the

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SME segment alone the sector has been witnessing a growth rate of 15-20%.

Handicrafts

Another traditional industry that Rajasthan is well known for is the export of handicrafts. The industry that started about 25-30 years ago today boasts of an annual turnover of approximately 1400-1500 crore rupees. There are over 500 handicraft manufacturing and exporting units providing employment to about two lakhs people in Jaipur and Jodhpur, the two main handicraft centers in the state. In order to promote the industry an exclusive handicraft center is being set up in the Boranada Industrial area, Jodhpur, besides setting up industrial parks at Basni & Boranada.

Garments

Garment manufacturing and exports is yet another important industrial cluster in the state. After the end of the quota system, the garment industry witnessed a sudden spurt of growth of 25-30%. Huge export orders kept all the exporters busy even in the off season for which tailors and fashion professionals were hired from neighboring states. Over 2502 garment manufacturing and exporters today account for annual exports worth Rs.850 Crore, of which Rs.500 Crore is from direct exports. The industry provides employment nearly to two lakhs people. The industry is now eyeing to grow domestic market too. The industry needs organized textile parks and apparel centers which have sound printing and dyeing facilities of international standards.

Printing & Dyeing

Rajasthan has long been known for its printed and dyed textiles. But lately the hand block printing and dyeing units that employs lakhs of people that have been in thick of controversy over creating an ecological imbalance due to excessive use of dyes. With a total turnover of Rs.500 crore, the industry is getting orders from exporters across the country and especially from Delhi, Mumbai and Kolkata. Over a century old the cluster is asking for industry status as it has invested about Rs.600 Crore in machinery.

Carpets

The state is also famous for heritage carpet weaving. With over 170 manufacturing and exporting units, Jaipur is one of the largest processing centers of handmade woolen carpets after Bhadoi in UP. Providing livelihood to over 2.5 lakhs people, the industry accounts for annual exports worth Rs.450 crore.

A handmade carpet with fine quality work generally costs between $6 and $ 30 per sq.ft. In the international market. The labour intensive natures of the industry and frequent droughts have helped the industry flourish in the state. Carpet manufacturing needs no power or water, which have always been scarcity in the state. The industry emerged as regular source of income for rural artisans and masses during drought in the state.

Agro Industry

With about 20,000 units in the state, the agro

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industry has an export market of over Rs.500 Crore. The size of the domestic market could be several times that of exports, but details are not available. There 2164 agro units in Nagore, 1496 in Sawai Madhopur, 1391 in Jaipur and 1192 in Jodhpur. The industry has helped bring prosperity to the villages and increase production and income as well as absorb surplus labour in the area. In a way it helped solve the problem of unemployment. The major agro products from the state include oil seeds (Ground nut, Caster seeds), horticulture (fruits & Vegetables), tobacco, spices, cotton, diary and guargum.

Stones

Rajasthan is home to exquisite natural stones like granite, marble stone, slate and sand stone and it has a long tradition of stone usage. Of the total exports from India, Rajasthan accounts for about Rs.800 Crore of stones, of which sandstone and marble are the main items. The Kishangarh cluster about 100 km. from Jaipur, is a major market for stones quarried in Makarana and Rajsamand. Huge marble deposits, a well-developed quarrying base, availability of cheap labour and indigenously developed machinery, a large domestic and export market and a well-established distribution network are the main reasons for the business doing well in the state.

Agro Food Parks

Rajasthan is one of the most fascinating states in India and perhaps the richest in agriculture heritage. It is a common belief that it is a land of

desert, few people know and even less is aware that Rajasthan has vast tracts of land that are irrigable. It is predominantly agrarian State where agriculture contributes 25-40% of the State's Domestic Product and 70% of its produce is engaged in agriculture and allied activities. Thar Desert that runs, predominantly in the western part of the State and covers 250.000 Sq. Kms. has for centuries been a non-irrigable tract of land. The district of Barmer, Bikaner, Jaisalmer and Jodhpur provide the co-ordinates of the desert to a common travels. Indira Gandhi Canal has resulted a significant increase in the State. This can covers the seven district of Rajasthan namely Barmer, Bikaner, Churu, Hanumangarh , Ja i sa lmer Jodhpur and Sriganganagar.

Crops of mustard, cotton and wheat now flourish in the semi-arid western reason of the State where nothing but sand ruled the roost for several years. The canal is slowly but surely changing the face of Rajasthan. Government of Rajasthan is actively engaged in promoting various new techniques of modern day farming and bringing the technology to the farmer by organising several fares and on site demonstrations. The governments massive be evinced by the number of subsidies and financial support that it is extending to the customer.

Government of India is providing grant-in-aid for development of Agro Food Park, so that all requisite information like Common Effluent Treatment Plant, Warehousing, Testing Laboratory etc. are available at place and Agro units located in these parks can derive advantage of large scale. Congenial at place and Agro units located in these parks can derive advantage of large scale.

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Congenial environment, hassle free labour law and best-suited infrastructure are key elements, on which these parks have been designed. Rajasthan being primarily an agrarian economy and leader in producing Bajra, Barely, Pulses, Coriander and host of industrial ventures of this sector, looking to the current need of the hour, developing of Agro Food Park at Ranpur, Kota and Boranada, Jodhpur has been undertaken in the State.

The state government has identified exports as one of the thrust areas. Export promotion cell has been

set up in the state Commissionerate of Industries. The Rajasthan Small Industries Corporation Limited (RSIC) has been recognized as an export house. Promotional efforts for export growth are also being made by the Bureau of Industrial Promotion and the RIICO ltd. The manufacturer and exporter have given an excellent account of themselves in export efforts, which is evident from the sharp increase in the volume of exports in the recent years.

Description Agro Food Park, Agro Food Park, Agro Food Park,Ranpur, Kota Boranda, Jodhpur Sriganganagar

Area Acres 136.74 192.47 81.14

No. of Plots 100 183 77

No. of Plots for Dry Process 73 146 -

No. of Plots Wet process 18 28 -

No. of Plots for Green House 9 9 -

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Rajasthan as a state offers some advantages for exports which are listed below :

Strategic Location8,380 sq. km. of Rajasthan falls in the National Capital Region (NCR), which is around 24.50% of the total National Capital Region, the world's second largest urban agglomeration. Rajasthan shares its border with five major Indian states: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat. These states have a combined population of 402 million (year 2011). Industries in Rajasthan have to their advantage, access to this enormous market.

Excellent Connectivity Rajasthan has the second largest network of National Highways in the country with a total road length exceeding 7,310 km. National Highways provide excellent connectivity to cities like Delhi, Ahmedabad, Vadodara, Mumbai, Jabalpur, Bhopal, Agra, Gwalior, Indore, Amritsar. The railway network connects the state to all major cities in India and links the state to ports in Mumbai, Kandla and Mundra in Gujarat. The State has a fully operational international airport at Jaipur, with direct flights to Sharjah and Muscat. Rajasthan has airports at

Jodhpur, Udaipur and airstrips in other major districts. An Air-Cargo Complex at Jaipur, and Inland Container Depots at Jaipur (2), Jodhpur (3), Bhilwara & Bhiwadi facilitate trade within and outside India.

Delhi-Mumbai Industrial Corridor

Rajasthan touches six major states of the Northern, Western and Central India. It is a natural corridor between the wealthy northern and the prosperous western states of the country, which makes it an important trade and commerce centre. Dedicated Freight Corridor (DFC) is a 1,483 km long rail corridor connecting Jawaharlal Nehru Port near Mumbai to Dadri near Delhi. DFC will allow high-speed connectivity for high axle load wagons (25 tonnes) of double stacked container trains supported by high power locomotives. A band of 150 km has been chosen on both sides of the DFC to be developed as the Delhi-Mumbai Industrial Corridor (DMIC). With nearly 39% of DFC passing through Rajasthan, opportunities for industrial establishment along the route are eminent as the corridor will make Rajasthan easily accessible to western and northern markets. About 60% of the State's area (in 22 Districts including major districts such as Jaipur, Alwar, Kota and Bhilwara) falls within the project

STRENGTHS OF RAJASTHAN IN TERMSOF EXPORT POTENTIAL

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influence area. With this, the State will become an attractive destination for setting up industrial and support infrastructure units. In Khushkhera-Bhiwadi-Neemrana region, an integrated industrial township is being developed and on similar concept a township along with other support infrastructure and projects is being planned in Jodhpur-Pali-Marwar area under DMIC in the first phase.

Land AvailabilityRajasthan, geographically the largest state of India, offers land in plenty and at competitive prices. Rajasthan Industrial Development and Investment Corporation Ltd. (RIICO) ensure top-class infrastructure and other related support for establishment of new enterprises. To catalyze industrialization, the Corporation has developed 327 industrial areas close to 74,228 acres throughout the state. Furthermore, the State Government has made several provisions under the relevant laws for leasing of government land and simplifying the procedure for conversion of land for agri-business activities.

Agro Food Parks

RIICO has developed four Agro Food Parks in Kota, Jodhpur, Sriganganagar and Alwar for development of agriculture based industries. Another Food Park is being developed near Kishangarh in Ajmer district by M/s Greentech Mega Food Park Pvt. Ltd. under the Scheme of Government of India.

Single Window Approval

A Single Window System is operational as a

single point interaction mechanism for entrepreneurs to interact with the State for seeking statutory approvals for their projects. Keeping with the times, the entire process of application and monitoring is through web-enabled software called the Single Point Electronic Monitoring and Clearance System. Using this web-interface, entrepreneurs can register, fill and monitor application forms electronically. Forms along with the enclosures have to be submitted at the nodal office physically

Robust Infrastructure: Massive Urban & Industrial Setup

a. State has second largest rail network.

b. State has second largest network of national highways in the country.

c. State has access to 6 Airports - International Airport at Jaipur & Domestic Airports at Udaipur, Jaisalmer, Bikaner, Jodhpur, Kota & Kishangarh.

d. State has presence of 8 Inland Container Depots (ICDs) (ICDs- Bhiwadi (Khatuvas), Jaipur (2), Jodhpur(3), Kota & Udaipur (Khemli - Domestic)& 1 Air Cargo Complex (Jaipur)

e. State has 3 Special Economic Zones (SEZ) in Jaipur and fully operational Japanese Industrial Township at Neemrana (Alwar)

f. State has Three Multimodal Logistic Zones (Ajmer, Jaipur and Pali)

g. State has Industrial Areas having 84,200 acres of land.

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Availability of Skilled Manpower

a. State has 2 Skill Universities (Rajasthan ILD Skills University and Bhartiya Development University)

b. Emerging National Hub - Higher Education Highest number of Universities (70)

c. RSLDC - National award for Skilling Initiatives 3 years in a row

d. Maximum Chartered and Cost Accountants in India from Rajasthan

e. Target to skill 1.5 Lakh youth every year

f. Active Industry participation in Skilling - COEs

National level institutes

State has national level instituites located at following places

§IIT Jodhpur

§IIM, Udaipur

§NIFT, Jodhpur

§AIIMS, Jodhpur

§National Law University, Jodhpur

§BITS, Pilani

Technical Skilling Annual Intake

State has the following annual skilling intake

§52,768 in 120 Engineering Colleges

§4,785 in 65 Management Colleges

§50,585 in 197 Polytechnics

§3.74 lakhs in 1,876 Industrial Training Institutes

Resource AdvantageState enjoys the following Resource advantage

§2nd Largest producer of minerals in India - Zinc, Lead, Silica, Limestone

§Highest potential for Solar Energy in the country

§Largest producer of guar gum, mustard seeds, spices and coarse cereals

§4th Largest producer of Wheat

§1st in Industrial textile manufacturing

§1st in Blended fabric and wool manufacturing & exports

§2nd largest in Cement production

§Leader in Gems & Jewelry (15% contribution in exports of Rajasthan)

Effective Governance: Favourable business environmentState has following environment favorable to business:

One of the first States to come up with a Single Window Act

(The Rajasthan Enterprises Single Window Enabling and Clearance Act, 2011)

Advanced SWCS developed and launched in June 2016

§Clearly defined land allotment processes

§All requisite business clearances granted online in defined time

§Peaceful labour relations

§Excellent Law & Order situation across the State

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§TOURISM UNIT POLICY 2015

§AGRI PROCESSING & AGRI MARKETING POLICY 2015

§E-GOVERNANCE, IT & ITeS POLICY 2015

§MINERAL POLICY 2015

§BIO TECHNOLOGY POLICY 2015

The state has framed a suitable policy framework conducive to investment.

§RAJASTHAN INVESTMENT PROMOTION SCHEME 2014 (RIPS)

§MSME POLICY 2015 & OTHER SUPPORTIVE SCHEMES

§START UP POLICY 2015

POLICY FRAMEWORK FOREXPORTS

The state Incentives for manufacturing and service enterprises as per Rajasthan Investment Promotion Scheme (RIPS)- 2014 are as under:

100% for setting up of agro-processing and agri-marketing enterprise wherein the project is sanctioned before 31st March, 2019 under the Rajasthan Agro-Processing and Agri-Marketing Promotion Policy 2015

S.No. Particulars Subsidy Exemption Years

1 Investment 30% of State tax due 7and deposited

2 Employment Upto 20% of State tax 7Generation due and deposited

3 Electricity Duty 50% 7

4 Land Tax 50% 7

5 Mandi Fee 50% 7

6 Stamp Duty 50% on purchase / lease of land and construction or improvement on such land

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Rajasthan Investment Promotion Scheme (RIPS)- 2014 Has Additional Benefits For

Women, SCs / STs, Persons with Disability, Enterprises in Backward and Most Backward Areas

Manufacturing Enterprises Ceramic & Glass, Dairy, ESDM, Industrial Gases, MSME, in Thrust Sector Pharmaceutical, Plastic to Oil Manufacturing, Textile, Kota Stone,

Marble & Granite, Defence, Desalination, IT, Agro-processing & Agri-marketing, Bio-Technology and Food Processing

Service Enterprises in IT, Bio-Technology and TourismThrust Sector

Incentives for manufacturing and service enterprises

Eligibility Criteria For Customized Package Under Rajasthan Investment Promotion Scheme (RIPS)- 2014

S. No. Investment Size (>) OR Employment Area Sector / MineralSize (Min.)

1 Rs.100 Crore OR 200 Most Backward*

2 Rs. 200 Crore OR 250 Backward**

3 Rs. 400 Crore OR 400 General

4 Rs. 100 Crore OR Main raw mineral as per RIPS- 2014

5 Rs. 100 Crore OR 250 Agro-processing and Agri-marketing

6 Rs. 100 Crore OR 200 Bio-technology

7 Rs. 750 Crore Cement manufacturing***

8 Rs. 200 Crore OR 500 Service Sector

9 Rs. 200 Crore OR 400 Manufacturing enterprise in IT

Most Backward Area: Revenue Districts of Baran, Jhalawar, Banswara and Dungarpur. Tribal sub-plan area of Revenue District of Udaipur, Sirohi and Pratapgarh including municipal area thereof, as specified by Scheduled Areas (State of Rajasthan) Order, 1981 dated 12.02.1981

** Backward Area: Revenue Districts of Barmer, Dholpur, Jaisalmer and Karauli

*** The benefit of investment subsidy and employment generation subsidy shall not be granted for a period exceeding 07 years and the total amount of such subsidies shall not exceed 55% of State tax due and deposited by the enterprise

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An international trading zone by the name of Indobazar.com(WWW) has been created by RSIC on the World Wide Web where buyers and sellers can converge on a single platform to complement their buying and selling needs. The concept involves authentication of the buyers and sellers who choose to become members on this platform. It is proposed that initially, the membership would be restricted to exporters from Rajasthan and would later be extended country-wide and world-wide on the basis of franchises and agencies. On line trading zone as a concept has been launched for the first time and envisages tie-up with private sector and international certification and rating agencies. It is also going to provide lot of concessions to the SSI sector through a tie up between RSIC and funding agencies like SIDBI. It is going to be a major breakthrough in providing a boost to exports from Rajasthan.

In order to increase awareness regarding export opportunities and procedures, workshops, seminars and training programmes for exporters would continue to be organised.

An International Exhibition Complex cum Convention Centre is proposed to be set up at Sitapura, Jaipur. This would be a joint venture project between RIICO and private sector. The State Government would consider a special package of concessions for the establishment of this prestigious complex. However, exemption from entertainment tax on the entertainment entries in the complex shall be exempted for a period of 15 years.

The facility of the bonded ware houses would be encouraged in important industrial areas of the State.

RAJASTHAN HAS FOLLOWING SECTOR OF PROMINENCE AND THEIR SALIENT FEATURES ARE AS UNDER:

AUTO AND ENGINEERING§Major automotive manufacturing hub at

Bhiwadi - Neemrana – Alwar

§Special auto and engineering zones being developed in NCR

§Substantial production of passenger cars and motorcycles in Alwar District

§Opportunities for OEMs and Auto Ancillaries

TEXTILES§Largest producer of blended fabric and 2nd in

Blended Yarn.

§7 Textile Parks, an Apparel Park & Powerloom Mega Cluster

§Eligible for additional benefits as thrust sector in RIPS- 2014

§Textile Hub - Bhilwara

TOURISM§Famous for Forts, Palaces and Desert

§High tourist influx

§Opportunities-5 Star Hotels, Heritage Hotels, Adventure Tourism, Theme Parks


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AGRO AND FOOD PROCESSING§1st in guar gum, mustard, seed spices, coarse

cereals & wool

§2nd in gram and milk (10% of Indian production of milk)

§3rd in oil seeds

§5 dedicated Agro-Food Parks

§1 Mega Food Park


MINING AND CERAMICS§Accounts for 90% of India's marble, slate and

sandstone

§Large deposits of limestone, gypsum, rock phosphate etc.

§500 Ceramic units existing in State

§Exclusive Ceramic & Glass Zone at Giloth and Sathana


IT/ITES/ESDM§Cost of IT professionals 15-20% lower

§Dedicated IT SEZ 750 acres at Mahindra World City, Jaipur

§Opportunities in Auto & industrial electronics, mobile phone, LED products, Solar PV cells


DEFENCE§Readily available large tracts of land

§Raw materials availability: Existing Steel/ copper/ brass tubes manufacturing

§FDI limit raised to 100% and 49% under automatic route

§Eligible for additional benefits as Thrust sector in Rajasthan Investment Promotion Scheme (RIPS 2014)

INFRASTRUCTURE§Second largest network of national highways in

the country

§344 Industrial Areas having 84,200 acres

§Opportunities in Urban Infrastructure:

§Public Transport Services

§Waste Management

§Affordable Housing

§Smart Cities: Jaipur, Udaipur, Kota & Ajmer

HEALTHCARE§113 hospitals with 60,000 hospital beds, 13

medical colleges

§Health Centers: 571 community, 2079 rural, 342 Urban.

§Immense scope for Medical Tourism in State

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Exports from Rajasthan at A Glance

S.No. Product Year (Rs. in crore)

2014-15 2015-16 2016-17 2017-18

1. Textiles 4500.90 4812.36 5256.61 5667.30

2. Agro & Food Products 8009.55 3093.67 3720.43 4204.84

3. Gem & Jewellery 5106.66 5344.84 5695.33 5264.38

4. Engineering 3774.79 4754.48 5629.20 7350.17

5. Metal

1. Ferrous 873.11 753.70 745.06 935.07

2. Non-Ferrous 954.01 1023.61 3129.20 4065.19

6. Dimensional Stones Marble, 2848.57 2904.17 3102.51 3172.40Granites & articles of stonemica etc

7. Mineral fuels, Mineral oils & 8.53 9.66 13.40 138.96Products, Bituminous Substances,Mineral waxes, Ores, Slags & Ash

8. Electronics & Computer Software 2100.00 2305.02 2439.73 2531.42

9. Wool & Woollens 59.12 78.36 62.93 91.73

10. Chemical & Allied 4140.50 4144.56 3404.74 4231.55

11. Drugs & Pharmaceuticals 393.70 398.21 469.28 604.64

12. Plastic & Linoleums 497.11 636.18 701.94 922.87

13. Handicrafts 3264.54 3342.65 3831.36 3701.55

14. Leather & Leather products 158.11 230.02 266.66 296.89

15. Readymade Garments 1616.17 1579.36 1660.61 1831.51

16. Carpet (Durries) 453.3 568.92 626.84 1095.32

17. Others 8.48 67.70 20.28 371.13

Total 38767.15 36047.42 40776.11 46476.92

Office of the Commissioner, Industries & Secretary, CSRRajasthan, Jaipur

Documents

BOOSTING EXPORTS AS GATEWAY TO ECONOMIC RESURGENCE …industries.rajasthan.gov.in/content/dam/industries/CI/... · 2019-12-20 · Long term trends in exports over a ten year horizon