Rajasthan: Industry and MSMEs

Rajasthan's industry sector — mining & quarrying, manufacturing, electricity, gas, water supply & other utility services, and construction — contributed 26.55 per cent of the state's Gross State Value Added at current prices in 2025-26 (advance estimates). Figures below are from the Economic Review 2025-26.

Industrial Sector Performance and GVA

The industry sector in Rajasthan recorded a growth of 7.02 per cent at constant (2011-12) prices for the year 2025-26. The Gross Value Added (GVA) of the industry sector increased from ₹1.36 lakh crore in 2011-12 to ₹2.48 lakh crore in 2025-26 at constant prices, representing a Compound Annual Growth Rate (CAGR) of 4.36 per cent. At current prices, the GVA rose to ₹4.54 lakh crore in 2025-26 (CAGR 8.98 per cent). The industry sector contributed 26.55 per cent to the Gross State Value Added (GSVA) at current prices in 2025-26. Within this sector, manufacturing accounted for 40.52 per cent, followed by construction at 35.02 per cent, mining & quarrying at 12.42 per cent, and electricity, gas, water & other utility services at 12.04 per cent. In 2025-26, electricity, gas, water & other utility services grew by 9.37 per cent, construction by 8.27 per cent and manufacturing by 7.84 per cent, while mining & quarrying declined by 1.41 per cent.

Industrial Infrastructure and RIICO

RIICO (Rajasthan State Industrial Development & Investment Corporation Limited) has developed 445 industrial areas across the state. During 2025-26 (up to December), RIICO acquired 7,654.63 acres of land and developed 19 new industrial areas, including the IT Park in Ajmer and Ceramic Park in Bikaner. RIICO allotted 1,499 plots and incurred an expenditure of ₹1,220.99 crore on industrial areas, recovering ₹2,050.73 crore. The Jodhpur-Pali-Marwar Industrial Area (JPMIA) is being developed over approximately 154 sq. km and is notified as a Special Investment Region (SIR). Phase-A of JPMIA covers 1,577.69 acres with an estimated project cost of ₹921.66 crore. The National Industrial Corridor Development and Implementation Trust (NICDIT) has approved an equity investment of ₹322.80 crore and soft debt of ₹105 crore for this project.

Key Industrial Schemes

The Rajasthan Investment Promotion Scheme (RIPS) 2024, launched on 8th October 2024, offers incentives for manufacturing, services, and sunrise industries. Eligible units receive a 75 per cent reimbursement of State tax for 7 years under the asset creation incentive, on a minimum investment of ₹50 crore in manufacturing (₹25 crore for MSMEs) or ₹25 crore in services (₹10 crore for tourism). Additional incentives include an Employer Booster of 10-15 per cent and an Anchor Booster of 20 per cent. By December 2025, eligibility certificates were issued to 3,914 units covering proposed investments of ₹1.65 lakh crore. The Rajasthan Logistics Policy 2025 provides a capital subsidy of 25 per cent of Eligible Fixed Capital Investment (EFCI) for logistics infrastructure like warehouses and dry ports, disbursed over 10 years.

MSME Policy and Support Mechanisms

The Rajasthan MSME Policy 2024, implemented on 8th December 2024, is valid until 31st March 2029. It functions as a "One Stop Shop" for incentives. Key provisions include an additional interest subsidy of up to 2 per cent on loans up to ₹50 crore for new or expanding MSMEs. The Mukhyamantri Yuva Swarojgar Yojana (MYSY) 2026, released on 15th January 2026, targets 1 lakh young people aged 18 to 45 with interest-free loans, margin money (10 per cent of the loan, up to ₹50,000 for graduates/ITI holders) and CGTMSE fee reimbursement. The Yuva Udyamita Protsahan Yojana (YUPY) provides 6 per cent interest subvention on loans up to ₹2 crore for entrepreneurs aged 45 or below. Since inception, loans amounting to ₹764.43 crore have been sanctioned to 706 units up to December 2025. Under the Micro, Small and Medium Enterprises Development Act-2006, 14 facilitation councils redressed 1,517 cases of delayed payments during 2025-26 (up to December).

Industrial Parks and Special Zones

Several specialized parks are being developed to target specific industries. The Rajasthan Petro Zone (RPZ) is being developed on 700 hectares to utilize downstream products of the HPCL Rajasthan Refinery; its first phase opened for allocation in September 2025. A Stone Park covers 18.83 hectares in Kota. The Solar Panel Manufacturing Park in Jodhpur spans 41 hectares and offers 9 plots. For ceramics and glass, RIICO is developing zones in Soniana (Chittorgarh) over 196.95 acres and Gajner (Bikaner) over 237 acres. The Handicraft and Furniture Park in Jodhpur covers 161.75 acres and is expected to attract ₹400 crore investment, generating employment for over 5,000 people.

Ease of Doing Business and Exports

The Raj Nivesh Portal integrates 181 services across 19 departments to facilitate investment proposals exceeding ₹10 crore. In 2025, 1,925 applications involving an investment of ₹42,693.70 crore were approved through this portal. Under BRAP-2024, Rajasthan was recognised as a Top Achiever in Business Entry, Labour Regulation Enablers, Environment Registration and the Services Sector. The state’s total exports for 2024-25 amounted to ₹97,171.66 crore. The top five export items, accounting for more than 67 per cent of total exports, are Engineering Goods, Gems & Jewellery, Metal, Textiles, and Handicrafts. Specifically, Engineering Goods exports reached ₹19,849.29 crore and Gems & Jewellery exports reached ₹17,567.87 crore in 2024-25. The 44th Indian International Trade Fair-2025 was held in New Delhi from 14th to 27th November 2025, where the Rajasthan Pavilion won a gold medal.