industries in rajasthan Centre for Urban Research
Key industrial sectors in Rajasthan include cement, mining, tourism, gems & jewelry, textiles, chemicals and agro-based industries.
Rajasthan is the largest producer of cement in India. With a capacity of over 13 million tonnes per annum, Rajasthan accounts for over 15% of India's cement production. The cement industry in Rajasthan is witnessing significant growth in recent years.

Fresh capacity aggregating over 10 MMTPA is under various stages of implementation. With the domestic demand for cement expected to grow at 8-9 per cent annually, cement production in India is projected to reach 160 million tonnes by 2007. The key strength of Rajasthan's cement industry is the presence of large limestone reserves, estimated to be over 2.5 billion tonnes. All the large cement producer companies have significant presence in Rajasthan. T

hese include AV Birla Group / Grasim Industries, Gujarat Ambuja Cement and ACC. Mining and Metals
Rajasthan is the second largest mineral producing state in India. It has a share of over 90 per cent in minerals such as zinc ore, copper ore, gypsum, phosphorite, asbestos, rock phosphate, calcite and dolomite. Following table shows Rajasthan's position in terms of reserves and annual production of key minerals.

Rajasthan is the largest producer of non-ferrous metals such as copper and zinc in India. It accounts for 40 per cent of India's copper production, 100 per cent of the zinc production and 85% of lead production.

The mineral industry is also an important source of revenue for the state government. Rajasthan government earns annual revenue of over US$ 100 million as mineral royalty. To facilitate faster exploitation of its mineral wealth, the state government has reduced the royalty rates on several minerals.

Prominent mining / metal industries in Rajasthan include Hindustan Zinc, a part of the Vedanta Resource group and Hindustan Copper Ltd, a GoI enterprise. The projects in mining / metal industries in Rajasthan include capacity expansion by Hindustan Zinc, India's largest producer of zinc.

In 2002, Rajasthan attracted over 620,000 foreign and over 7 million domestic tourists. Rajasthan's share in India's foreign and domestic tourist arrivals stands at 11.2 per cent and 3.3 per cent respectively. Popular tourist destinations in the state include historic cities (Jaipur, Udaipur), wildlife centuries (Sariska, Ranthambore) and desert locations (Jodhpur, Jaisalmer).

Rajasthan has a developed tourism infrastructure, with over 6,000 hotel rooms spread over more than 150 hotels. Of these, over 1,400 rooms (54 hotels) belong to the heritage category. Rajasthan also runs the "Palace on Wheels' luxury train, which is well known attraction for foreign tourists.

India has been identified by the World Tourism Organization and World Travel and Tourism Council as a country with high growth potential. Domestic tourism has been growing at over 10 per cent per annum over the last decade. The number of foreign tourists visiting India is expected to grow by over 7 per cent per annum over the next decade. To provide further fillip to tourism industry in the state, Rajasthan government has reduced the luxury tax applicable to the tourism industry from 10 per cent to 8 per cent.

The Tourism Department has estimated that investment of over US$ 600 million is required in the tourism industry in Rajasthan over the next ten years. It is estimated that the private sector's share of investment can be upto US$ 200 million.
Tourism has a significant multiplier effect on the economy. It is estimated that every rupee spent by a tourist changes hands 13 times, and that every hotel room generates direct employment to three persons and indirect employment to eight persons. In Rajasthan, tourism is the third largest employer after agriculture and textiles sector. Prominent tourism industry players with strong presence in Rajasthan include The Indian Hotels, ITC-Sheraton, The Oberoi and Holiday Inn

Gems and Jewelry
Jaipur and Jodhpur have emerged as the leading centres for export of gems and jewellery. Rajasthan contributes substantially to India's total export of cut and polished stones aggregating over US$ 10 billion. Rajasthan is a leader in the coloured stones segment of the gems and jewellery sector.

The key advantage offered by Rajasthan is the availability of skilled personnel. Jaipur has also traditionally been a centre for jewellery making for the domestic market. The industry's competitive position will further strengthen with the setting up on a dedicated Special Economic Zone in Jaipur.

Textile is an important industry for Rajasthan, representing over 20 per cent of the investment made in the state. Rajasthan contributes over 7.5 per cent of India's production of cotton and blended yarn (235,000 tonnes in 2002-03) and over 5 per cent of fabrics (60 million sq meters).

The key factor responsible for development of textile industry in Rajasthan is availability of cotton and wool in the state. Production of cotton in Rajasthan has, however, declined from over 1.4 million bales in 1996-97 (approx. 10 per cent of India's production) to 0.7 million bales 2003-04. Wool production in Rajasthan has grown from 16 million kg in 1992-93 to around 20 million kg currently, representing over 40 per cent of India's wool production.

Abundant availability of this key raw material has prompted many textile units to locate in the state. With a network of backward and forward linkage, Rajasthan's textile industry offers significant competitive advantage to the industry.

Availability of trained labour is another factor contributing to the success of the industry in the state. Prominent players in the textile industry with presence in Rajasthan include Rajasthan Spinning & Weaving Mills, JK Synthetics, Nahar International and BSL Group.