Economy of Rajasthan Study Notes with Practice Questions, Schemes including Budget. This is useful for RPSC RAS/RTS Prelims, Mains and Other Competitive Exams of Rajasthan. Rajasthan Economy RPSC RAS
- Economic Terminology
- Rajasthan: an introduction to Economy
- Industrial Development & Economic Growth in Rajasthan
- National Income: Basic Concepts
- Monetary Policy and the Reserve Bank of India
- Fiscal Policy of India: Meaning, Objectives and Impacts on the Economy
- Classification and Operations of Commercial Banks in India
- Money Supply and Inflation
- National Development Council
- Public-Private Partnership (PPP) in Rajasthan
- Special Economic Zones – SEZ-Rajasthan
- Transport Infrastructure of Rajasthan
- Urban Infrastructure in Rajasthan
- Rural Development in Rajasthan
- Special Area Development Programmes
- National Family Health Survey-Rajasthan
- Skill development in Rajasthan
- Unemployment in Rajasthan
- Poverty in Rajasthan
- Agriculture Sector in Rajasthan
- Service Sector in Rajasthan
- Industrial Sector in Rajasthan
- Industries of Rajasthan
- Important Departments & Organisations
- Policies, Concessions & Facilities for Industries in Rajasthan
- Public Enterprises in State
- Economic Planning in Rajasthan
- Public Distribution System
- Current Affairs: Economy
- Practice Solved MCQ
Rajasthan: an introduction to Economy
Rajasthan, the largest (area-wise) state in India, is located in the north-western part of the subcontinent. It is surrounded on the north and north-east by Punjab, Haryana and Uttar Pradesh, on the east and south-east by Uttar Pradesh and Madhya Pradesh and on the south-west by Gujarat.
Rajasthan offers tremendous opportunities in the areas of organic and contract farming as well as in infrastructure developments related to agriculture. Rajasthan is the largest producer of rapeseed, bajra and mustard. It is the second largest producer of oilseeds and spices and third largest producer of soya bean and coarse cereals in India. Rajasthan is a leading producer of limestone, silver, gold, copper, marble, sandstone, rock phosphate, and lignite. The state is the largest producer of cement in India. It has 24 major cement plants. Rajasthan is also the second-largest producer of milk and the largest producer of wool in India. Rajasthan Economy RPSC RAS
The economy depends on many factors. The factors are agricultural production, industrial production, contribution from service sector and contribution by export/import of goods, Plantations of spices, mushroom development, floriculture, fish farming and horticulture can make the agro sector viable and income generating. The industrial sectors need to be further diversified to areas like production of alloys, production of electronics goods, production of military hard wares and production of lithium batteries. Production of varieties of chemical products is necessary to meet the domestic demands and export to other countries. Production of solar panels, wind mills and non conventional energy products may help the export sector. Skill development, population control and communal harmony are factors which may help the economy. Stress on mineral production and processing may also help the economy. Diversion to electric vehicles may reduce the import of oil from other countries. All these combined may help the economy in future.
Main Factors determining economic development are as follows.
- Trade deficit
- Banking system
- Crude oil prices
- Foreign Direct Investment
- Government expenditure & Taxation
- Population and man power resources
- Natural resourses and its utilization
- Capital formation and capital accumulation
- Capital output ratio
- Favorable investment pattern
- Occupational structure
- Extent of the market
- Technological advancement
- Development Planning
Rajasthan has reserves of numerous precious and semi-precious stones and is the largest manufacturer of cut and polished diamonds in the country. The world’s largest centre for gemstone cutting and polishing is located in Jaipur.
Industrial Development & Economic Growth in Rajasthan
Rajasthan, the largest (area-wise) state in India, is located in the north-western part of the subcontinent. It borders six major states in the northern, western and central parts of India. Rajasthan is a natural corridor between the wealthy northern and the prosperous western states, making it an important trade and commerce centre.
The natural resources, policy incentives, strategic location and infrastructure in the state are favourably suited for investments in sectors such as cement, tourism, agriculture and allied industries, mineral and mineral processing industries.
The state has an agricultural economy with nine agro-climatic zones and various types of soil that help during the cultivation of crops. Foodgrain production in Rajasthan is estimated to have reached 22.58 million tonnes in 2017-18.
Between 2011-12 and 2017-18, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 11.60 per cent (in rupee terms) to US$ 130.37 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 11.45 per cent (in rupee terms) to US$ 117.53 billion.
The state is the leading producer of cement grade limestone in India. Production of limestone during Apr-Dec 2017 reached 54.17 million tonnes, accounting for more than 20 per cent of India’s limestone production.
Bureau of Investment Promotion (BIP) is a nodal agency of the Government of Rajasthan that facilitates investments in various sectors in the state. Rajasthan State Industrial Development and Investment Corporation (RIICO) is the sole agency in the state that develops land for industrial growth. Rajasthan Economy RPSC RAS
Some of the major initiatives taken by the government to promote Rajasthan as an investment destination are:
- As per state budget 2018-19, US$ 27.68 million was allocated for the tourism department.
- Under state budget 2018-19, an estimated outlay of US$ 692.59 million was made for agriculture in the state. Irrigation and flood control were allocated US$ 405.87 million. A Single Window Clearance System (SWCS) for investment approvals is operational in the state and the BIP was set up to focus on investments above US$ 2.2 million.
- The Rajasthan Industrial Infrastructure Corporation (RIICO) has been assigned the responsibility of setting up industrial areas in the state. The organisation also provides loans for small, medium and large scale projects.
- RIICO has set up 340 industrial areas by acquiring 84,202.57 acres of land. During 2016-17, 601 new industrial units commenced activity taking the total number of industrial units to 37,714 in Rajasthan.
- The Government of Rajasthan is promoting the development of several SEZs across the state for sectors such as gems and jewellery, handicrafts, IT, electronics, automotive/auto components and textiles.
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