MSME

Advantage Rajasthan


Total investment of industrial units is over 1,800 crore
Significant contribution in State's industrial production, export, employment and creation of entrepreneurship base

Sector generates direct employment for 720,000 people

Market Access

8,380 sq km of Rajasthan falls in the National Capital Region (NCR), which is around 24.5% of the total NCR. Rajasthan shares its border with five major Indian states: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat. Industries in Rajasthan have to their advantage, access to this enormous market.

Labour Reforms

The state government has initiated comprehensive labour reforms. The state government relaxed the Trade Union Act, Industrial Dispute Act, Contract Labour Act as well as 1961 Apprenticeship Act to spur economic development and attract investment.

  • Key Highlights of Labour Reforms   
    • Industrial establishments employing up to 300 workers are now allowed to retrench employees without seeking the prior permission of the Government.
    • The threshold of the number of employees required for the purpose of applicability of the Factories Act has been increased from 10 to 20 (in electricity-powered factories) and from 20 to 40 (in factories without power ) thereby putting small factories in Rajasthan outside the purview of the Factories Act
    • Membership of 30% of the total workforce needs to be recorded for a union to obtain recognition, up from 15%, a move that will halt productivity losses due to industrial dispute
    • As against the existing threshold of 20 contract labour/workmen, the Contract Labour Act will be applicable only to those establishments and contractors in Rajasthan who employ 50 or more contract labour/workman in the preceding 12 months.

Skilled Manpower

To ensure abundant availability of trained human resources, Rajasthan's constant endeavour is to build as well as support the growth of a robust educational infrastructure. The technical institutes in the state have an intake capacity of over 2 lakh students. The state has been ranked 5th in terms of total number of colleges and universities in India.

Industrial Power

With firm steps to augment availability of power for industrial, commercial, domestic and agricultural consumption, Rajasthan has a power generation capacity of over 17200mw, with 3500 mw capacity under construction and an additional 34,243 mw sanctioned for the 13th Plan (2017-22). Besides, Rajasthan has signed MoUs for setting up of a cumulative generation capacity of 40,000 mw in the solar sector.