Rajasthan has recorded encouraging industrial growth over the last two years, reaffirming the state’s position as one of India’s most preferred investment destinations. The state government’s proactive policies, coupled with effective implementation by RIICO (Rajasthan State Industrial Development and Investment Corporation), have significantly accelerated industrial development, land allotments, and infrastructure expansion.
Strong Investor Confidence and MoU Implementation
In the first year of its tenure, the state government showcased its long-term industrial vision through the Rising Rajasthan Summit, which received an overwhelming response from investors. Memorandums of Understanding (MoUs) worth nearly ₹35 lakh crore were signed, out of which projects exceeding ₹8 lakh crore have already moved to the ground level.
This progress reflects the development-oriented leadership of Chief Minister Bhajanlal Sharma, under whose guidance several strategic decisions were taken to boost industrial growth over the last two years. RIICO has played a key role in executing these decisions efficiently.
Policy Reforms to Ease Business and Boost Employment
To encourage investments, generate employment, and simplify industrial operations, the state government and RIICO introduced multiple new policies and simplified existing rules. Key initiatives include:
RIICO Direct Allotment Scheme (implemented in March 2025), enabling investors from Rising Rajasthan Summit to obtain industrial land at reserved rates; seven phases have already been completed.
Amendments allowing change in permitted land use within RIICO industrial areas.
Introduction of Undeveloped and Semi-Developed Land Policy, enabling faster project execution.
A dedicated Logistics and Warehousing Policy, permitting planned logistics and warehousing units in industrial zones.
Significant Growth in Land Allotment and Revenue
Due to these reforms, Rajasthan has emerged as a top choice for investors, leading to a sharp rise in RIICO’s performance indicators during April–December 2025:
Total value of allotted land rose from ₹700 crore (2024) to ₹3,200 crore (2025)
Number of allotted plots increased from 670 to 1,790
Value of government land acquired for industrial development increased from ₹80 crore to ₹1,120 crore
RIICO’s receipts nearly doubled from ₹1,190 crore to ₹2,130 crore
Issued work orders rose from ₹350 crore to ₹670 crore
Rapid Expansion of Industrial Areas
On-ground industrial expansion has also gained pace. During April–December 2025, 20 new industrial areas were developed, compared to just six during the same period last year.
Jodhpur–Pali–Marwar Industrial Township: A Flagship Project
The state government is developing the Jodhpur–Pali–Marwar Industrial Township as a full-fledged industrial hub across 3,600 hectares.
Phase A: 641 hectares with infrastructure development worth ₹370 crore already underway
Phase B: Planned over 1,100 hectares
Proposed largest multimodal logistics hub in the state
Potential for 1,200+ industrial units
Expected employment generation of nearly 3 lakh jobs by 2042
Land allotment at competitive rates will begin in the coming months under a flexible and simplified land disposal policy. Development work is also progressing rapidly at the Dausa and KBNIR nodes, with plans to establish 10 ICDs/MM Logistics Hubs in Rajasthan over the next five years.
Flexible Land Use and Legal Reforms
To enhance land utilization, RIICO amended Rule 20(C) of RIICO Land Disposal Rules, 1979, allowing entrepreneurs to change permitted land use upon payment of prescribed fees. So far, 115 applications have been received, with the highest demand for industrial-to-commercial conversion.
Additionally, to resolve long-standing legal issues arising from Supreme Court rulings, the state has enacted the Rajasthan Land Revenue Amendment and Validation Act, 2025, granting RIICO clearer authority and addressing legacy challenges faced by entrepreneurs.
Sector-Specific Industrial Zones
Rajasthan Petro Zone (Pachpadra–Balotra):
11 plots allotted for refinery by-product-based industries
Construction of 8 plug-and-play factory sheds underway
Defence Manufacturing Hub, Kishangarh:
Land allotted to a defence unit investing approximately ₹160 crore
Focus on advanced defence manufacturing
New Policies to Strengthen Industrial Ecosystem
Over the past year, the state government has launched several new policies, including:
Global Capability Center (GCC) Policy
Trade Promotion Policy
Rajasthan Logistics Policy
Rajasthan Textile & Apparel Policy
RIICO Direct Allotment Policy
Upcoming policies include Semiconductor Policy and Aerospace & Defence Policy, aimed at attracting high-tech investments.
Private Land Aggregation Bill for Faster Project Execution
To address delays caused by land acquisition, the government is introducing a Private Land Aggregation Bill, enabling land acquisition through mutual consent. Landowners will be made partners in development and offered developed land instead of only cash compensation, ensuring transparency, faster execution, and long-term benefits for farmers and industries alike.
Roadmap 2026: Government’s Vision Ahead
Industry and Commerce Minister Colonel Rajyavardhan Singh Rathore stated that the government has finalized its 2026 roadmap, which includes:
Development of JPMIA
Expansion of DMIC nodes at Dausa and KBNIR
Textile Park at Bhilwara
Defence Manufacturing Zone at Kishangarh
Development of Dausa–Bandikui Industrial Area
Upgradation of infrastructure across existing industrial areas
The focus remains on establishing a robust business model that sets new benchmarks for Ease of Doing Business.
RIICO Managing Director Shivangi Swarnkar emphasized that continued simplification of rules and effective implementation of new policies remain the government’s top priority. The state plans to introduce Aerospace & Defence Policy, Industrial Development Policy, Semiconductor Policy, and Park Promotion Policy in 2026, further strengthening Rajasthan’s industrial growth trajectory.
