The 15th Finance Commission headed by Chairman, Shri N.K. Singh alongwith its Members and senior officials met today with the representatives of the Trade and Industry bodies in Rajasthan

The Commission observed that:

• Industrial growth has been prioritized with the emphasis on growth areas such as Textiles, Cement, Gems and Jewellery, Glass and Ceramics, etc. Special Economic Zones have been created to improve exports mainly in Handicrafts, Electronics, etc.
• Close proximity to the National Capital, New Delhi has supported the development of industrial areas in Alwar district which houses several leading industrial giants in the automotive and engineering sector. The State also has tremendous potential to spur industrial activity after the development of Delhi Mumbai Industrial Corridor.
• Rajasthan has made great strides in the following sectors:
  • Natural resources such as Crude Oil, Marble and Granite, Limestone, Mica,
  • Feldspar, Copper, Lead and Zinc
  • Textiles and Apparel
  • Agriculture based industries has significantly improved by introduction of several new crops which were hitherto not being produced in Rajasthan viz. date farming in Jaisalmer, Kinoo production in Sri Ganganagar, Oranges in Jhalawar Area, Guvavas in Sawaimadhopur, Guargum in Bikaner belt.
  • Production of variety of spices viz. Chilly, Fennel, Asafoetida, Cumin, Ajawain, Coriander, Fenugreek leaves, Ginger, Garlic etc.

5. Rajasthan ranks 9th in the ease of doing business ranking with a score of 99.40%.
5. Rajasthan also has the third highest solar capacity of 3072.43 MW (till March 2019).
5. Rajasthan State Industrial Development & Investment Corporation Ltd. (RIICO) and Japan External Trade Organization (JETRO) have collaborated for facilitating Japanese investment in the State of Rajasthan during the period 2006-2016. A significant step in this regard has been the establishment industrial zone has been created at Ghiloth near Neemrana.
5. Rajasthan is also the second largest crude oil producing state in India after Bombay High offshore field being operated by ONGC.

Regarding the tourism potential in Rajasthan, the Commission observed that:

• The state offers vast and unexploited potential for domestic tourists who, along with the foreign tourists, could contribute towards pushing the economic growth further, while providing employment opportunities.
• According to the Tourism Statistics at a Glance 2018, State ranks 5th amongst all Indian States in attracting foreign tourists visits in the country in 2017. 6 percent of all Foreign Tourist visits were attracted by the State of Rajasthan in 2017.
• State ranks 10th amongst all Indian States in attracting domestic tourists visits in the country in 2017. 2.8 percent of all Domestic Tourist Visits were attracted by the State of Rajasthan in 2017.

The key initiatives undertaken by State Government to promote Investment include:

• Introduction of RIPS 2014, Single Window Clearance System.
• Systematic creation of various policies and schemes relating to Agro-Processing and Agri-Business, Tourism, Solar Power, MSME, Minerals, Township, Incentive Scheme for BPOs and KPOs, Start-ups.
• Introduction of comprehensive labour reforms.

The points of concern according to the Commission are -

5. The availability of adequate Technical Skilled Population:

• According to Niti Aayog, lack of technically qualified personnel in the state has been a concern.
• The expected availability of skilled personnel is around 2.17 lakh less than half of the expected requirement in the state.
• case of Semi-skilled personnel, where the expected requirement is 30.91 lakh and the expected availability is around 10.91 lakh individuals.

5. Inadequate Transport Infrastructure:

• Rajasthan still lags behind the national average with respect to road length.
• The road density in Rajasthan is 74.3 km per 100 sq. km as against the national average of 143.1 km in the year 2016-17.
• The total length of roads in the State is about 1,89,825 km in the year 2017-18. The length of national highways in the State is about 9,271 km while state highways extend to about 15,032 km.

Representatives of Industries and Trade Associations present in the meeting included representatives of Rajasthan Chamber of Commerce & Industry, CII Rajasthan, Federation of Rajasthan exporters, Gems & Jewellery Export Promotion Council, United Council of Rajasthan Industries, FICCI, FORTI, Jaipur Chamber of Commerce and Industries, Laghu Udyog Bharti, PHDCCI, Jaipur.

The Commission noted all the concerns highlighted by the representatives of the Rajasthan Trade and Industry representatives and promised to address them in its recommendations to the Central Government.

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MC

Industrial development priorities and state investment measures identified, with skills shortages and transport gaps to inform recommendations. The 15th Finance Commission met Rajasthan trade and industry representatives to assess industrial strengths, investment-promotion measures, and constraints for its recommendations. It recorded priority sectors (textiles, minerals, agro-processing, solar, gems and jewellery), existing industrial zones and policy initiatives (RIPS 2014, single-window clearance, incentives, labour reforms), and tourism potential. The Commission identified principal concerns: a shortfall in technical and semi-skilled labour and inadequate transport infrastructure, noting industry submissions for inclusion in its recommendations to the Central Government.