Industrialisation is considered one of the foremost modus to stimulate the overall growth of the country. Additionally, Development of industries has the vast potential of providing substantial employment and generating the income and improving the standard of living and over all well-being of the people. At the time of Independence, the state had inherited poor status in respect of development of industries. Until 1960, Rajasthan virtually had no place on the industrial map of India. Some strategies were worked out to increase investment in public sector industries and to promote private sector investment in different districts, which gradually led to the development of industries in the state.
In terms of production value, the textile industry, dominates the large and medium category of industries. This is followed by industries catering to agro-based, food and allied products; cement and cement products: chemical gases , lubricants and plastic; heavy machinery ; metal allied products, automobile parts and machine tools parts; electrical and electronics –related products; minerals , stones and lime; drugs and pharmaceuticals ; ceramics and glass wares; and leather and footwear.
The state is almost the sole producer in the country of certain minerals like wollastonite, zinc and copper. Besides this, it is also a leading producer of crops such as mustard, bajra, barley, maize, cotton and spices. The is also a huge population of livestock that sustains the livelihoods of several communities across the state.
Contribution of Industries to State GDP
The Industrial Sector in Rajasthan contributed 29.09% of Gross Value Added at Constant Prices (2011-12) and 26.89% at current prices in 2016-17. The Industrial sector includes Mining, Manufacturing, construction, electricity, gas and water supply. At a CAGR of 15.7%, the industrial sector reported the second fastest growth during 2004-05 to 2015-16.
Contribution of Industries in Employment
In 1960-61, total employment in industries and mines was estimated at 6.2 lakh (i.e., 8 per cent of the total number of workers) and this increased to 10.26 lakh by 1998-99, a rise of 64 per cent. Currently, the services sector employed 47% of the state’s population, followed by the agriculture (44%) and Industrial (8%) sector. Hence, though growth in Industrial sector may appear impressive, industry’s percentage share in total employment is not significant.
Industrial Profile of Rajasthan
A. On Basis Size of Factory/Investment in Plant & Machinery
As on 31/3/2015:
Large Scale Industries in Rajasthan
- Number: 337
- Employment: 1,95,317
Medium Scale Industries in Rajasthan
- Number: 337
- Employment: 24,835
Micro, Small & Medium Enterprises
- Micro Numbers: 117503
- Small Numbers: 6557
- Medium Numbers: 247
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
Manufacturing Enterprises- The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
Service Enterprises:- The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
B. On Basis of Products:
- Basic Goods Industries:
- Cement, basic chemicals, Steel, fertilisers, electricity, copper, zinc etc.
- Capital Goods Industries
- Industries that produce machinery required for industries, transport equipment etc.
- Hindustan Machine Tools (Ajmer), Instrumentation Ltd (Kota).
- Intermediate Goods Industries
- Industries that produce goods used as raw materials by other industries.
- Tyres (JK Tyre, Kankroli), Cotton yarn
- Consumer Goods Industries
- Consumer goods are of two types: Durable (exist for long-time, do not need to purchase frequently) & non-durable goods.
- Durable goods: Scooters, Automotive units
- Non-durable: Edible Oils, Agro-based
C. On basis of Raw Material used:
- Agro-based Industries
- Forest-based Industries
- Mineral based Industries
- Livestock based Industries
Rural Industries: Cottage & Handicrafts of Rajasthan
Handloom and handicrafts constitute the largest part of Indian cottage industries. Handicrafts help preserve traditional art and culture, while the handloom sub-sector is an important source of employment generation. Handlooms, handicrafts, khadi and village industries constitute an important part of the non-formal sector of Rajasthan’s economy.