Introduction
Rajasthan, the largest (area-wise) state in India, is in the northwest part of the subcontinent. It is surrounded on the north and the northeast by Punjab, Haryana, and Uttar Pradesh, on the east and southeast by Uttar Pradesh and Madhya Pradesh, and on the southwest by Gujarat.
It is among the largest mineral-producing states in India. Around 81 varieties of minerals are available in the state, and 57 minerals are produced on a commercial scale in the state. It also contributes significantly to the production of dimensional and decorative stones, such as marble, sandstone, granite etc.
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%.
The growth was driven by storage, communication & services related to broadcasting, financial services and public administration. 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.
Rajasthan Tourism
Tourism is a key driver of Rajasthan’s economy, supporting employment across hospitality, transport, handicrafts, and cultural sectors, and contributing significantly to the State’s GDP. In CY25, Rajasthan welcomed 254.44 million visitors, including 19.45 lakh foreign tourists, with Jaipur, Udaipur, Jodhpur, Jaisalmer, and Ajmer remaining the top attractions.
Rajasthan operates luxury trains such as the Palace on Wheels and Royal Rajasthan on Wheels, linking key destinations across states. Investment opportunities span heritage cities, wildlife sanctuaries like Sariska and Ranthambore, and desert landscapes in Jodhpur and Jaisalmer.
The Rajasthan Tourism Unit Policy (RTUP) 2024 aims to attract private investment and promote entrepreneurship. By December 2024, 259 projects worth Rs. 3,599 crore (US$ 410 million) had been approved, expected to generate around 12,000 jobs. Skill development through the Rajasthan Institute of Tourism and Travel Management (RITTMAN), along with marketing initiatives like the Great Indian Travel Bazaar (GITB) and Rajasthan Domestic Travel Mart (RDTM), further strengthen the sector. The Tourist Assistance Force ensures visitor safety and enhances Rajasthan’s reputation as a welcoming destination.
Agriculture in Rajasthan
Agriculture and allied sectors form the foundation of Rajasthan’s economy, accounting for 25.74% of the State’s Gross State Value Added (GSVA) in FY26. Benefiting from its varied climatic conditions, the State produces a diverse range of crops. The sector has witnessed consistent growth over the years, with GSVA rising from Rs. 1,19,000 crore (US$ 13.56 billion) in 2011-12 to Rs. 4,40,702 crore (US$ 50.10 billion) in 2025-26 at current prices.
The state has an agricultural economy with nine agro-climatic zones and various types of soil that help during the cultivation of crops. As part of the state budget 2023-24, Fasal Beema Yojana has been allocated Rs. 1,400 crore (US$ 167.93 million). In August 2022, Mr. Narendra Singh Tomar, Minister of Agriculture and Farmers Welfare inaugurated four new facilities at the Central Arid Zone Research Institute (CAZRI), which has been rendering excellent services for more than 60 years under the Indian Council of Agricultural Research (ICAR).
Industries in Rajasthan
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. The value of limestone production in Rajasthan stood at Rs. 2,789.16 crore (US$ 317.10 million) during April 2025-February 2026, compared with Rs. 2,553.26 crore (US$ 308.45 million) during the corresponding period of the previous year.
In May 2024, JSW Cement announced to invest Rs. 3,000 crore (US$ 359.84 million) crore on building an integrated manufacturing facility at Nagaur in Rajasthan. Shree Cement, the second largest cement-maker in India, in December 2023, commissioned a new klin at its integrated production facility in Nawalgarh, Rajasthan. The plant, set up at Rs. 3,500 crore (US$ 419.82 million) can produce 3.5 million tonnes of cement per annum.
Recent Developments in Key Sectors
- 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.
- 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.
- On October 24, 2025, the Indian Railways launched three new train services in Rajasthan, including two Vande Bharat Express routes, the Jaipur-Udaipur Vande Bharat Express and the Jaipur-Jodhpur Vande Bharat Express along with the Jaipur-Kota Intercity Express, to strengthen connectivity and promote tourism across the state.
- On August 25, 2025, NBCC Ltd received an Rs. 3,700 crore (US$ 421.6 million) contract from the Rajasthan Government to develop a 95-acre mixed-use project in Jaipur featuring a convention centre, IT and GCC towers, hotels, and residential facilities.
- As of August 2025, Rajasthan had a total installed power generation capacity of 56,494 MW, of which 9,040 MW was under the central utilities 8,890 MW under state utilities and 38,562 MW under the private sector.
- On June 3, 2025, Larsen & Toubro Ltd (L&T) secured significant water-infrastructure contracts valued between Rs. 1,000-2,500 crore (US$ 113-284 million) from the Government of Rajasthan, covering rural water-supply, fluorosis-mitigation and system-strengthening works.
- As of June 2025, Rajasthan had 65 million wireless and 1.14 million wireline subscribers.
- On May 22, 2025, Prime Minister Mr. Narendra Modi inaugurated 103 redeveloped railway stations across 18 states and Union Territories under the Amrit Bharat Station Scheme and unveiled development projects worth Rs. 26,000 crore (US$ 2.95 billion) in Rajasthan, including new rail lines, electrification works, solar power projects, and national highway upgrades aimed at boosting connectivity and regional growth.
- 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.
- 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.
- 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 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.
Note: ^Excluding Fuel, Atomic and Minor Minerals
FACTFILE
Capital
JaipurGeographical Area (sq km)
342,239State Language
Hindi, Marwari, Jaipuri, Mewari, Malvi and EnglishLiteracy Rate
66.1 per centKey Industries:
Cement
Tourism
Textiles
IT and ITeS
Ceramics
Handicrafts
Chemical
Marble
Steel
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