Rajasthan Economy is the 8th biggest economy in India with the Net State Domestic Product (NSDP) of more than US$ 11.5 billion. The Economy of Rajasthan grew at a Compounded Average Growth Rate (CAGR) of around 6% during the years 1994 to 2003. The economy of the state is dependent on agricultural, industrial, tourism, and mining sectors.
The Economy of the state of Rajasthan mainly depends on the agricultural sector for it accounts for almost 22.5% of the state's economy. In the state of Rajasthan, the total area that has been cultivated is around 20 million hectares and 20% of the area out of this is irrigated. The various kinds of crops that are cultivated in Rajasthan are wheat, oilseeds, ground nuts, jowar, barley, gram, pulses, bajra, maize, and spices. Many kinds of fruits and vegetables such as orange, mango, lemon, pomegranate, guava, potato, and peas are grown in Rajasthan. The agricultural farms are mainly irrigated with the help of tanks and wells. This sector has given a major boost to the Economy in Rajasthan.
The Economy in the state of Rajasthan gets its revenue from the industrial sector which accounts for around 32.5% in the state's economy. In Rajasthan, the main industries are of rugs, vegetable oil, woolen goods, dyes, and textile. The private sector industries in the state include stone, footwear and leather, glass wares and ceramics, steel, cement, and chemical. The heavy industries in Rajasthan includes the production of rolling railway stock and zinc and copper smelting. Rajasthan contributes 15% to the total cement production in the country. It also contributes 10% to the total salt production in India. Thus the industrial sector has contributed a great deal to the growth of the Economy in Rajasthan.
Rajasthan Economy also depends to a very large extend on the tourism sector which accounts for almost 15% of the state's economy. The tourism sector in the state of Rajasthan has been flourishing due to the fact that the state is endowed with great natural beauty and has many palaces and forts all over the state that attracts tourists from India as well as abroad. This sector has given a major boost to the Economy in the state of Rajasthan. The other minor sectors that contribute to the Economy of Rajasthan are transportation, power, financial & banking institutions, telecommunications, energy, and infrastructure sectors.
Rajasthan Economy has grown over the years due to the efforts taken by the state government. The state must continue to boost the sectors that provides it with the most revenue such as the agricultural and tourism sectors. This will ensure that the Economy of the state of Rajasthan will continue to rise.