PREAMBLE
Rajasthan has been in the forefront of Economic Reforms. It was the
first State in the country to adopt the International Competitive bidding
route for setting up power projects. It was also the first in the
country to announce a State Road Policy, facilitating the entry of
private enterprise in the Roads Sector. A new, simplified Sales Tax Act
has been introduced by the State Government. The Mineral, Marble and
Granite policies of 1994 have promoted scientific exploration and
exploitation of the State’s rich minerals. The Industrial Policy
1994 has brought about a significance change in its investment
climate. The Rural Non Farm Policy of 1995 – the first of its
kind in the country – has helped focus efforts on growth and
employment through rural industrialisation.
With a series of policy initiatives taken in the last few years, most roadblocks to the private sector’s entry in Infrastructure have been removed. The State is poised for significant developments in the Power Sector. The prospects for development of Solar energy are promising. There are indications of a significant oil and natural gas reserve, which could change the face of Western Rajasthan’s economy.
Rajasthan is now among the six fastest growing States of the country. Its Eighth Plan Outlay constituted an increase of 283% over that of the Seventh Plan. During the past five years the average growth rate of investment in the large and medium sector has been 33% and in the SSI sector over 15%. Over the same period, exports from the State have grown at an annual average rate of 53%.
The experience of implementing the State’s 1994 Industrial Policy has also brought to light certain deficiencies and practical problems, which need to be redressed. There are areas like Infrastructure and Human Resource Development which require even greater attention than has been accorded in the past. The New Industrial Policy of the State is thus an exercise to reflect these developments and to launch new initiatives to take advantage of the emerging opportunities.
OBJECTIVES
The principal objective of the new Policy is to make Rajasthan the most preferred State for investment in the identified sectors and to ultimately achieve global competitiveness. While governed by this basic goal, the Policy will lay special emphasis on accelerating the overall pace of Industrial growth, increasing employment opportunities, improving productivity, ensuring sustainable development and strengthening the SSI, Tiny and Cottage Industry sector.
STRATEGY
The above objectives will be achieved by adopting a strategy which enables focused growth. Thus , the new strategy envisages development of clusters offering economies of agglomeration and thrust sectors.
The task of improving infrastructure would be given the highest priority. The plans for infrastructure development will take into account the resource endowment and the growth potential of each area..
Special emphasis will be given to the development of Thrust sectors, which have been identified keeping in view their infrastructural requirements, growth potential and the capacity to generate employment.
Simplification of rules and procedures, timely and smooth delivery of services will receive continued attention. Special efforts will be made for developing Government-Industry partnership in the implementation of the Policy.
Greater emphasis will be laid on development of human resources for emerging requirement of industry.
The basic approach of all the initiatives will be to encourage increasingly greater participation of private enterprise in the State’s economic growth.
