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India ranked 134 out of 175 countries in terms of ease of doing business. China ranked 93, and the relatively tiny Vietnam ranked 104, 30 places higher than India. In terms of dealing with licences and sundry government permissions, India ranked 155, China was only marginally better at 153, but Vietnam was way ahead at 25. As far as registering property was concerned, India was placed at 110, versus China at 21 and Vietnam at 34. Regarding flexibility in hiring, utilising and retrenchment of workers, India was 112, compared to 78 in China and 104 in Vietnam.

Now come the real party poopers. In exports and imports, our still cumbersome procedures ranked India at 139; China was 38, and Vietnam 75. We fared abysmally in the ease of enforcing commercial contracts: ranked 173 (that is, only two countries are worse than us), versus 63 for China and 94 for Vietnam. And our monstrous difficulties in winding-up ranked India at 133 in the ease of closing business, compared to 75 for China and 116 for Vietnam.

All these hassles have to do with the multiple governments : centre, state, districts, municipal entities and courts. All involve multiple permissions � often sequential and occasionally conflicting in their remit � which take far too long to be resolved.

Rajasthan at a Glance:

Rajasthan, with its enchanting heritage, culture and art, has mesmerized the world for centuries. Interestingly, Rajasthan has now also started featuring prominently on the list of an entirely new category of people.
Rajasthan's business environment is powered by an enterprise-friendly government, good infrastructure and abundance of highly skilled young workforce. The remarkably peaceful and politically stable state offers a set of unique advantages and opportunities for profitable investment in the Industrial sector. Rajasthan is a vibrant, exotic state where tradition and royal glory meet in a riot of colors against the vast backdrop of sand and desert. It has an unusual diversity in its entire form people, customs, culture, costumes, music, manners, dialects, cuisine and physiographic. The land is endowed with invincible forts, magnificent palace havelis, rich culture and heritage, beauty and natural resources.

It is a land rich in music, dance, art & craft and adventure; a land that never ceases to intrigue & enchant. There is a haunting air of romance, about the state, which is palpable in its every nook and corner. This abode of kings is one of the most exotic locales for tourists the world over. The state has not only survived in all its ethnicity; it owes its charisma and color to its enduring traditional way of life.

The panoramic outlook of the state is simply mesmerizing, with lofty hills of Aravali's one of the oldest mountain ranges of the world; and, the golden sand dunes of the Great Indian Desert - the only desert of the sub-continent. No other region in the country is a conglomeration of so many paradoxes.

It is a land of superlatives; everything over here is breathtakingly beautiful, impressive and fascinating.

Rajasthan is located in the northwestern part of the subcontinent. It is bounded on the west and northwest by Pakistan; on the north and northeast by the states of Punjab, Haryana, and Uttar Pradesh; on the east and southeast by the states of Uttar Pradesh and Madhya Pradesh; and on the southwest by the state of Gujarat.

The Tropic of Cancer passes through the southern tip in the Banswara district. The capital city is Jaipur and it is well connected with other parts of the country and easily accessible.

The state has an area of 132,140 square miles (342,239 square kilometres). In the west, Rajasthan is relatively dry and infertile; this area includes some of the Thar Desert, also known as the Great Indian Desert. In the southwestern part of the state, the land is wetter, hilly, and more fertile. The climate varies throughout Rajasthan. On average winter temperatures range from 8� to 28� C (46� to 82� F) and summer temperatures range from 25� to 46� C (77� to 115� F). Average rainfall also varies; the western deserts accumulate about 100 mm (about 4 in) annually, while the southeastern part of the state receives 650 mm (26 in) annually, most of which is from July through September during the monsoon season.

Rajasthan has a single-chamber legislative assembly with 200 seats. The state sends 35 members to the Indian national parliament: 10 to the Rajya Sabha (Upper House) and 25 to the Lok Sabha (Lower House). Local government is based on 33 administrative districts.

Economy: Rajasthan's economy is primarily agricultural and pastoral. Wheat and barley are cultivated over large areas, as are pulses, sugarcane, and oilseeds. Cotton and tobacco are cash crops. Rajasthan is among the largest producers of edible oils in India and the second largest producer of oilseeds. Rajasthan is also the biggest wool-producing state in India. There are mainly two crop seasons.

The water for irrigation comes from wells and tanks. The Indira Gandhi Canal irrigates northwestern Rajasthan. The industrialization of Rajasthan slowly began in 1960s

The main industries are mineral based, agriculture based, and textiles. Rajasthan is the second largest producer of polyester fibre in India. The Bhilwara District produces more cloth than Bhiwandi, Maharashtra.

Rajasthan has a prominent place in quarrying and mining in India. The state is the second largest source of cement. It has rich salt deposits at Sambhar; copper mines at Khetri and zinc mines at Dariba; Zawar mines at Zawarmala for zinc; Rampura Aghucha (opencast) near Bhilwara. Dimensional stone mining is also undertaken in Rajasthan: Jodhpur sandstone is used in monuments, important buildings, residential buildings, etc. This stone is termed "chittar patthar".

Endowed with natural beauty and a great history, tourism is flourishing in Rajasthan. The palaces of Jaipur, lakes of Udaipur, and desert forts of Jodhpur, Bikaner & Jaisalmer are among the most preferred destination of tourists both Indian and Foreign. Tourism accounts for eight percent of the state's domestic product. Many old and neglected palaces and forts have been converted into heritage hotels. Tourism has increased employment in the hospitality sector.

Flora and Fauna: Though a large percentage of the total area is desert, and even though there is little forest cover, Rajasthan has a rich and varied flora and fauna.

The natural vegetation is classed as Northern Desert Thorn Forest (Champion 1936). These occur in small clumps scattered in more or less open forms. Density and size of patches increase from west to east following the increase in rainfall. Some wildlife species, which are fast vanishing in other parts of India, are found in the desert in large numbers such as the Great Indian Bustard (Ardeotis nigriceps), the Blackbuck (Antilope cervicapra), the Indian Gazelle (Gazella bennettii) and the Indian Wild Ass.

Rajasthan = largest state of the Republic of India in terms of area.
  • Ajmer Division: Ajmer, Bhilwara, Nagaur, Tonk.
  • Bharatpur Division: Bharatpur, Dholpur, Karauli, Sawai Madhopur.
  • Bikaner Division: Bikaner, Churu, Ganganagar, Hanumangarh.
  • Jaipur Division: Jaipur, Alwar, Jhunjhunu, Sikar, Dausa.
  • Jodhpur Division: Barmer, Jaisalmer, Jalore, Jodhpur , Pali, Sirohi.
  • Kota Division: Baran, Bundi, Jhalawar, Kota.
  • Udaipur Division: Banswara, Chittorgarh, Pratapgarh , Dungarpur, Udaipur, Rajsamand
State Borders (International Boarder) Pakistan - west,
Gujarat - southwest,
Madhya Pradesh- southeast,
Uttar Pradesh and Haryana - northeast
Punjab- north.
Established 1st November 1956
Area Sq.Kms. 342239 (Census 2001 )
Population 2001 Number 56507188 ( Census 2001)
Density 165Per sq. Km.
Divisions 7
Districts 33
Cities & Towns 222
Capital Jaipur
Desert Thar
Time Zone GMT + 5 Hours 30 minutes
Languages Hindi, English & Rajasthani (dialects)
Literacy 61.03%
Climate: Generally dry with monsoon during July-August
Sex Ratio 921 Female Per 1000 Male
Winter temperatures 8° to 28° C (46° to 82° F)
Summer temperatures 25° to 46° C (77° to 115° F)
Rain fall Western deserts accumulate - 100 mm approx (about 4 in) annually,
Southeastern part of the state receives 650 mm approx (26 in) annually
Economy Base Agricultural and Pastoral.
Gross State Domestic Product
a. Constant Prices Corer 118345 2007-2008
b. Current Prices Corer 159515 2007-2008
Per Capita Income
a. Constant Prices Rs. 16260 2007-2008
b. Current Prices Rs. 21565 2007-2008

Industrial Sector
Industrialization plays an important role in creating employment avenues and promoting share of industrial sector in the State Domestic Products (SDP).
In the financial year of 2007-08, a total of 7,707 small and artisan units were registered upto December 2007. These units with a total investment of Rs. 961.80 crores have generated direct employment for 53,169 persons.
During the financial year 2007-08, 341 new factories and 76 new boilers were registered wherein about 13,580 workers got employment upto December 2007.Rajasthan started experiencing industrial development between 1950 and 1960. Large and small scale industries started springing up in the Kota, Jaipur, Udaipur, Bhilwara and other Industrial Estates of Rajasthan. The main industries of Rajasthan include textile, rugs, woolen goods, vegetable oil and dyes. Heavy industries consist of copper and zinc smelting and the manufacture of railway rolling stock.
The other industries related to Private Sector include steel, cement, ceramics and glass wares, electronic, leather and footwear, stone and other chemical industries. Rajasthan experienced growth at the rate of 6.9% per annum in the Industrial sector. Following are the broad categories of Industries available in Rajasthan:
I. Agro Based Industries
II. Animal Husbandry Based Industries
III. Textile Based Industries
IV. Chemical and Plastic Products
V. Drugs and Pharmaceuticals Capsules and Tablets
VI. Electrical and Electronics Industries
VII. Engineering Industries
VIII. Leather and Leather Products
IX. Mineral Based Industries
X. Export Items
XI. Service Sector
    * IT & Tele communication
    * Real Estate
    * Financial Services
Textile is the major industry and, Rajasthan is considered as India’s second largest producer of Polyester Fiber. Besides these, Rajasthan is also involved in the large scale production of cotton and wool in the country. The production of Textiles accounts 21.96 % in the state. Rajasthan also produces huge quantities of spun yarn and is the fourth largest producer in India.
    * Cement Industry - The state of Rajasthan is also the major producer of cement and accounts for 15 per cent of the cement output of the country.
    * Chemical Industry- The chemical industry produces calcium carbide, caustic soda, sulphuric acid, pesticides, insecticides and fertilizers.
    * Salt Production- Rajasthan is the third largest producer of salt (sodium chloride) in the country and accounts for one-tenth of the country’s salt production.

The large mineral and metal deposits like zinc, copper, lignite, gypsum and mica in the state have also fostered the growth of a large number of industries that are involved in producing by-products by utilizing these natural resources.

Growth & Present Scenario

Stake Holders for Industrial Development

Rapid industrialization is the stated priority of the government which is committed to provide an environment that is business friendly and enabling in nature.
Given the effective law enforcement and peaceful environment -, industrial units in the state share a remarkably healthy industrial relation environment, with the absence of labour unrest.
The overall law and order situation in Rajasthan is very good. The natives welcome people from outside, and discrimination on the basis of community or regional backgrounds is unheard of.
Following are the stakeholders providing support in the Industrial Development in Rajasthan :
a. Rajasthan State Industrial Development & Investment Corporation Ltd. (RIICO)
RIICO- The Rajasthan State Industrial Development & Investment Corporation Ltd. since its inception in 1969, has emerged as a multi-faceted and dynamic institution .It has kept pace with the industrialisation process in providing complete and innovative means of financial and investment support services.
RIICO has played a catalytic role in the industrial development of Rajasthan. RIICO has also embarked upon creation of Special purpose Industrial Parks with excellent infrastructure facilities for specific types of industry.
The location for these industry -specific areas are carefully selected after assessing the easy availability of related resources such as raw material ,labour etc.
Services provided by RIICO to investors and entrepreneurs include:
    * Site selection and Acquisition of land
    * Financial assistance to small medium, and, large scale projects
    * Equity participation in large projects on merit
    * Technical consultancy for project identification and technical tie up
    * Escort services ,facilitation of government clearances
    * Merchant banking and financial tie –ups
    * Extending incentives and concessions according to the policy of State Government
b. Commissioner of Industries Office
Industries Department of Rajasthan being responsible for implementation of Investment Policy Scheme, Industries Development Scheme, Entrepreneurship Development Scheme, Cluster Development Scheme, PMRY, Urban and Rural Haat Scheme of Government of India, different schemes for the development of handloom and agro food industries as promulgated by Government of India from time to time. The Department is also responsible for the implementation of various Acts and Rules regarding weights and measures enforcement etc.

c. District Industries Centre (DIC)
The main functions of the Department include promotion of small scale industries in each district, to assist in the marketing of their products, development of salt areas, handicrafts artisan development, development of handloom, etc. The Department also provides various concessions and facilities and assistance for setting up of industrial units in the State. Registration of SSI units under the scheme of Government of India is one of the main functions of the Department.

d. Micro, Small & Medium Enterprise
Office of Development Commissioner (MSME), an apex body at Central level, for formulating policy for the development of Micro, Small and Medium Scale Industries in the country is headed by the Additional Secretary & Development Commissioner (Micro, Small and Medium Scale Enterprises) under Ministry of Micro, Small and Medium Enterprises, Govt. of India.

It is rendering the services through MSME Develop Institute Jaipur, covering the following areas:-
    * Advising the Govt. in policy matters concerning small scale sector.
    * Providing techno-economic and managerial consultancy, common facilities, and extension services.
    * Providing facilities for technology up-gradation, modernization, quality improvement & infrastructure.
    * Human resources development through training and skill up-gradation.
    * Providing economic information services.
e. Rajasthan Financial Corporation (RFC)
The Rajasthan Financial Corporation (RFC) was constituted under a notification of the State Government dtd. 17 January, 1955 under the SFCs Act, 1951, for providing long term financial support to tiny, small scale and medium scale industries in the State of Rajasthan.
The Corporation is continuing to work as a Catalyst of development for translating into practice the industrial policies and priorities of the Central and the State Governments as also for providing and improving upon immediate assistance in the planned and balanced development of industries in the State, particularly in the small and tiny sectors.
Since, its very inception, the Rajasthan Financial Corporation has been striving incessantly towards its Goal - that of extending a helping hand to varied entrepreneurial section of society for their financial requirements.
f. Bureau of Investment Promotion (BIP)
BIP is the single window agency for clearing all medium and large-scale investments. BIP is supposed to assist the investors looking at business opportunities in Rajasthan in every possible way:
    * Identifying investment opportunities
    * Providing access to information that is critical to setting up of project
    * Assisting translating of investment possibilities into concrete investment proposals
    * Single window for clearances through high-level Empowered Committees
    * Assisting site-selection and obtaining infrastructural facilities
    * Interfacing with Government Departments for required clearances
BIP is the nodal agency for Single Window System, put into operation to expedite clearance of private sector projects. The Bureau is the Secretariat for the Board of Infrastructure Development and Investment Promotion (BIDI), headed by the Chief Minister and the State Level Empowered Committee. These committees are empowered to take decisions on project proposal, which are binding on all departments, the focus being to clear within the prescribed time limit.
g. Electricity & Water Providers
    * Rajasthan Rajya Vidyut Vitran Nigam Ltd., (RRVVNL): Provides the electric connection to the industries and operates all the 400kV, 220 kV, 132 kV and 66kV electricity lines and system in the State.
    * Public Health & Engineering Department (PHED) : It provides the water connection to Industries
I. Rajasthan Renewable Energy Corporation Limited (RRECL)
It is working as a State Nodal Agency for promoting & developing Non-conventional Energy Sources in the State and as a State Designated Agency (SDA) for enforcement of provisions of Energy Conservation Act 2001 in the State.
J. Rajasthan State Pollution Control Board
The Rajasthan State Pollution Control Board is a body corporate constituted under section 4 of the Water (Prevention and Control of Pollution) Act, 1974. Under the Environment (Protection) Act, 1986 the Board, having different rules for addressing the problems of various sectors is giving the mandatory permission for industries. The State Board is engaged in implementation of the various rules under EPA, 1986:
K. Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industries, partnering industry and government alike through advisory and consultative processes.

List of Approval and Time Frame for Setting up Business in State

An indicative list of approvals with timeframe for setting up business in Rajasthan

Department Timelines
Environment * Site/environment clearance: 90 days
* NOC to establish: 45 days
* NOC to operate: 30 days
* Renewal of consent: 30 days
Industries * Letter of intent/industrial license: 15 days
* Sponsoring for essential raw materials: 30 days
Incentives * District level clearance: 30 days
* State level clearance: 45 days
Medical and Health Power * Drug License: 45 days
* Loads up to 60 HP: 70 days
* Loads above 60 HP and up to 300 KW: 90 days
* Loads above 300 HP and up to 3000 KW: 180 days
* Load above 3000 KW and up to 33KV: 375 days
Revenue * Land conversion up to 20 hectares: 30 days
* Land conversion above 20 hectares: 60 days
* Land allotment: 30 days
* Land allotment if government approval is required: 60 days
RIICO/RFC * Sanction of loan: 60 days
* Allotment of plot in industrial areas: 15 days

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