State-O-Nomics | Rajasthan’s economy is a fine balance between traditional and modern sectors

Rajasthan, a rrn state of India, is all set for its 2023 Legislative Assembly election scheduled for vember 25, 2023, to elect all 200 members of state's Legislative Assembly.

In a recent anuncement, Chief Minister Ashok Gehlot highlighted state's strong ecomic growth, with a growth rate of 11.04 per cent, despite facing setbacks during COVID-19 pandemic. He credited ecomic manment of state government for this success, ting that Rajasthan's Gross Domestic Product (GSDP) has surged by Rs 6 lakh crore over past four years.

Current ecomic status

As per vance estimates, minal GSDP for All India at Current Prices for year 2022-23 is likely to attain a level of Rs 273.08 lakh crore, showing a growth of 15.4 per cent. In same year, Rajasthan's GSDP is estimated to contribute 5.18 per cent to nation's GDP.

Furrmore, foreign direct investment (FDI) inflows in state stood at $2,078 million between October 2019-March 2023, according to Department for Promotion of Industry and Internal Tre (DPIIT). se FDI inflows underline state's growing appeal to international investors and businesses.

Key catalysts of Rajasthan's ecomic growth

Agricultural sector: In 2021-22, agricultural and allied sectors contributed 30.23 per cent to Rajasthan's Gross State Value ded (GSVA). sector displayed a growth rate of 4.78 per cent in 2021-22 compared to previous year. Rajasthan, however, remains leing producer of coarse cereals, coriander, pulses, oilseeds, cumin, and garlic.

Services sector: Rajasthan's diverse attractions, including its rich cultural herit, historical sites, natural landscapes, and hospitality industry, have boosted services sector. Tourism has led to an increase in job opportunities in this industry. ditionally, state's IT sector is expanding, with IT parks established in cities such as Jaipur, Jodhpur, Udaipur, and Kota. tably, tourism is one of key sectors in state. In 2022, 219.88 million domestic tourists and 0.39 million foreign tourists visited Rajasthan. Furrmore, Rajasthan cabinet h approved Rajasthan Film Tourism Promotion Policy 2022 with objective of promoting film production activities in state.

Industry and Manufacturing sector: This sector comprises various industries, including cement, mining and minerals, auto and auto components, textiles, agro-based industries, ceramics, salt production, and small-scale industry clusters. Rajasthan's vast limestone reserves make it a significant cement producer. state is India's second-largest mineral producer, especially in le and zinc. It also has a growing auto component manufacturing industry.

Renewable Energy: Rajasthan is a table producer of renewable energy sources, including solar, wind, biomass, and solar rooftop installations. As of May 2023, Rajasthan h a total installed power generation capacity of 39,118.86 MW, of which 3,937.36 MW was under central utilities 8,890.35 MW under state utilities and 26,291.15 MW under private sector. Of total installed power generation capacity, 14,102.19 MW was contributed by rmal, 1,941.93 MW by hydro and 22,518.00 MW by renewable energy, according to Indian Brand Equity Foundation.

Rajasthan's ecomy has evolved over years, with a blend of tritional and modern sectors driving its growth. state government remains committed to infrastructure development, promoting industrial growth, and harnessing its cultural herit and tourism potential for ecomic development. However, challenges such as water scarcity and poverty in certain regions continue to be areas of focus for sustained ecomic growth and development in Rajasthan.