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Rajasthan, the largest (area-wise) state in India, is in the northwestern part of the subcontinent. It borders six major states in the northern, western, and central parts of India. Rajasthan is a natural corridor between the wealthy northern and the prosperous western states, making it an important trade and commerce centre.

The natural resources, policy incentives, strategic location and infrastructure in the state are favourably suited for investments in sectors such as cement, tourism, agriculture and allied industries, mineral and mineral processing industries.

The state has an agricultural economy with nine agro-climatic zones and various types of soil that help during the cultivation of crops.

At current prices, Rajasthan’s GSDP is projected to be Rs. 18.75 lakh crore (US$ 213.21 billion) in FY26. Between FY16 and FY26, the state’s GSDP increased at a CAGR (in Rs.) of 10.65%.

Rajasthan recorded limestone production of 102.68 million tonnes during April 2025-February 2026, accounting for nearly 23.5% of India’s total limestone production during the period.

Bureau of Investment Promotion (BIP) is the nodal agency of the Government of Rajasthan that facilitates investment in various sectors in the state. Rajasthan State Industrial Development and Investment Corporation (RIICO) is the sole agency in the state that develops land for industrial growth.

As of March 2026, Rajasthan had a total installed power generation capacity of 64,30920 MW, of which 9,798.98 MW was under the central utilities 9,052.20 MW under state utilities and 45,458.02 MW under the private sector.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investment (FDI) inflows in the state stood at Rs. 30,035 crore (US$ 3,727 million) between April 2000-March 2026.

Total merchandise exports from Rajasthan stood at Rs. 73,055 crore (US$ 8.73 billion) in FY26. Gems and Jewellery, Plywood, and Engineering Goods accounted for a majority share in the overall exports from the state.

Following is some of the major initiatives taken by the Government to promote Rajasthan as an investment destination:

• Prime Minister Mr. Narendra Modi visited Ajmer, Rajasthan, on February 28, 2026, to inaugurate and lay the foundation stone for development projects worth over Rs. 16,680 crore (US$ 1.89 billion) across urban development, drinking water, roads, irrigation, energy and industrial infrastructure sectors.
• In March 2025, Union Minister for Road Transport & Highways, Mr. Nitin Gadkari approved a Rs. 1,237 crore (US$ 140.5 million) project to build a 134.86 km two-lane highway in Rajasthan’s Jaisalmer and Barmer districts, boosting connectivity, border security, and regional development.
• On October 23, 2025, the Union Cabinet approved the development of a new airport at Kota-Bundi in Rajasthan with an investment of Rs. 9,814 crore (US$ 1.12 billion). The project aims to enhance air connectivity in southern Rajasthan and support the region’s growing industrial, educational, and tourism sectors.
• Under state budget FY27
  • Under the Rajasthan Budget 2026-27, Rs. 15,078.05 crore (US$ 1.67 billion) was allocated for the road sector, including highways, road strengthening, widening, upgradation and bridge infrastructure projects.
  • Rajasthan allocated Rs. 29,432.39 crore (US$ 3.27 billion) towards electricity tariff subsidy and power sector support under the Energy Department in FY27.
  • The state earmarked Rs. 20,323.61 crore (US$ 2.26 billion) for urban development initiatives, including AMRUT 2.0, urban transport, sanitation, housing and civic infrastructure projects.
  • Rajasthan allocated Rs. 21,646.29 crore (US$ 2.40 billion) towards primary education during FY27, including expenditure on school infrastructure, digital learning and education access programmes.
  • The state earmarked Rs. 19,473.51 crore (US$ 2.16 billion) for secondary education in FY27, including Samagra Shiksha, hostel infrastructure, transport facilities and upgradation of schools.
  • Rajasthan allocated Rs. 12,195.81 crore (US$ 1.35 billion) for the Medical and Health Department, including expenditure on Ayushman Aarogya Yojana, Rajasthan Government Health Scheme, PHCs, CHCs and healthcare infrastructure projects.
  • The National Rural Health Mission (NRHM) received allocation of Rs. 4,853.56 crore (US$ 539.50 million) in FY27, including funding for Ayushman Bharat Health Infrastructure Mission and National AYUSH Mission.
  • Rajasthan allocated Rs. 4,147.51 crore (US$ 460.99 million) for the Agriculture Department in FY27, including support for goshalas, crop schemes and agriculture marketing infrastructure.
  • The state earmarked Rs. 2,609.18 crore (US$ 289.96 million) for the Animal Husbandry Department, including Mukhyamantri Milk Producer Sambal Scheme and livestock development initiatives.
  • On July 12, 2024, the Rajasthan government allocated substantial funds in its 2024-25 budget for water supply projects, including Rs. 15,000 crore (US$ 1.80 billion) for tap connections in 2.5 million villages and Rs. 20,370 crore (US$ 2.44 billion) for six major drinking water projects under the Jal Jeevan Mission.
  • On September 3, 2024, the Rajasthan government announced plans to develop 14 new industrial areas as part of its strategy to enhance the manufacturing sector, which contributes about 24% to the state's gross state domestic product. This initiative is aimed at ensuring the success of the upcoming investment summit, 'Rising Rajasthan,' scheduled for December in Jaipur.
  • The State Government has given importance to supporting women-led startups through several kinds of incentives. The State has identified women-led enterprises as one owned and controlled by women having a minimum financial interest of 51% of capital and giving at least 51% of employment generated in the enterprise for women. Women-led startups are those with a woman as Founder or Co-Founder or CXO.

Note: ^Excluding Fuel, Atomic and Minor Minerals