Agriculture, Industry and the Service Sector in Rajasthan

The sector shares are the easy half of this chapter and the sub-sector movements are the half that decides marks. Agriculture grew 0.22 per cent in real terms in 2025-26, which looks like stagnation until you see that crops fell 5.01 per cent and livestock rose 5.20, and the near-zero is the sum of two large opposite movements.

Two facts on this page overturn the picture most notes carry. Livestock is now a larger share of agricultural value added than crops, at 49.35 per cent against 42.61. And the mining index has fallen below its own base year, to 87.94 against a 2011-12 value of 100, in a state routinely described as mineral-rich.

1. Agriculture and allied sectors

GovtSource: Government of Rajasthan, Economic Review 2025-26 (Directorate of Economics and Statistics, published with Budget 2026-27), chapter 1, figure 1.2, read directly. 2023-24 is a Second Revised Estimate, 2024-25 a First Revised Estimate and 2025-26 an Advance Estimate.

The sector's CAGR is worth carrying alongside the year. Value added grew at 3.82 per cent a year at constant prices and 8.10 per cent at current prices across the series, and agriculture's share of state value added has fallen from 28.56 per cent in 2011-12 to 25.74 per cent in 2025-26.

Livestock has overtaken crops

GovtSource: Economic Review 2025-26, chapter 1, figure 1.3 and the text of page 4, read directly. The growth rates are at constant (2011-12) prices; the shares are at current prices.

In money terms the livestock sector's value added was ₹2.17 lakh crore in 2025-26 against the crop sector's ₹1.88 lakh crore. The Review states plainly that livestock is "even higher than the crop sector", and milk is the largest single contributor within it.

This is the analytical point the whole section exists for. A crop failure of 5 per cent was absorbed almost entirely by livestock growth of 5.2 per cent, and the sector as a whole still posted a positive number. Livestock is what makes Rajasthan's agricultural output less volatile than its rainfall, and that sentence is worth more in a Mains answer than any share figure.

The crops that carry the value are named. Bajra, groundnut and moong lead the kharif contribution; wheat, rapeseed and mustard, and gram lead the rabi. The agriculture chapter carries the area and production figures behind these, and the livestock chapter the breed and output detail.

Pulses production rose in both seasons in 2025-26. Kharif pulses reached 20.52 lakh tonnes, up 2.34 per cent, and rabi pulses 26.61 lakh tonnes, up 22.34 per cent. The rabi figure is an estimate for a season not yet harvested when the Review went to press, and should be quoted as such.

2. Industry: the sector, and what sits inside it

GovtSource: Economic Review 2025-26, chapter 5, read directly. Industry here means mining and quarrying, manufacturing, electricity, gas, water supply and other utility services, and construction, which is the Review's own definition and the one the sector share rests on.

GovtSource: Economic Review 2025-26, chapter 5, figures 5.3 and 5.4, read directly. Shares are at current prices and growth rates at constant (2011-12) prices, as the Review reports them.

Construction is more than a third of Rajasthan's industry, which is larger than most notes suggest and larger than mining and utilities combined. Mining and quarrying is only 12.42 per cent of the industrial sector despite the state's mineral endowment, and it is the only sub-sector that contracted in 2025-26.

The Index of Industrial Production

GovtSource: Economic Review 2025-26, table 5.1, read directly. The 2025-26 column is provisional and runs only up to November 2025, so it is a part-year figure and not comparable with the full years beside it.

Two things about this table are asked directly.

The IIP for Rajasthan is built on three categories only: manufacturing, mining and electricity. Construction is not one of them, even though construction is 35 per cent of the industry sector in the national-accounts table above. The IIP and the GVA sector are two different definitions of industry, and a question can be set on exactly that gap.

The mining index has fallen below 100. From 124.53 in 2021-22 to 87.94 in the part-year 2025-26, mining output is now measured below its own 2011-12 base. The general index has held up only because manufacturing kept rising, and that divergence is the story of the table.

3. The policy stack

Six policies define the current industrial regime and their years are the examinable part.

GovtSource: Economic Review 2025-26, chapter 5, read directly. The Review also names the Rajasthan Logistics Policy 2025, the Textile and Apparel Policy 2025 and the Global Capability Centre (GCC) Policy 2025 in its opening list; it gives commencement dates only for those shown above, and no date is invented here for the rest.

RIPS 2024, which is the anchor

The core incentive is a 75 per cent reimbursement of state tax paid, for seven years, under an asset-creation incentive. The investment thresholds are the part that gets asked:

GovtSource: Economic Review 2025-26, chapter 5, read directly.

A unit may instead opt for a capital subsidy or a turnover-linked incentive disbursed annually over ten years from the start of commercial production. The turnover-linked incentive carries annual caps that rise with the years: ₹50 crore in years 1 to 3, ₹65 crore in years 4 to 7 and ₹80 crore in years 8 to 10.

The boosters are the part most often got wrong, in two ways.

GovtSource: Government of Rajasthan, Rajasthan Investment Promotion Scheme 2024, the scheme document itself, read directly.

First, the Thrust and Anchor Boosters are alternatives and do not stack. The scheme document offers "choice of any one among the following Boosters/Incentives: Thrust Booster OR Anchor Booster OR Interest Subsidy." A unit takes one of the three, not all of them.

Second, the employment top-up is banded, not a range. The Economic Review compresses it to an "Employer Booster (10-15 per cent)", while the scheme document calls it the Employment Booster and sets three definite rates, 10, 12.5 and 15 per cent, against employment slabs and area categories. Both are government sources; the scheme document is the one that governs, and the Review's phrasing is a summary of it.

The investment categories are a separate recall list and come from the scheme document.

GovtSource: Rajasthan Investment Promotion Scheme 2024, read directly. Capital subsidy runs from 13 to 28 per cent of eligible fixed capital investment over ten years, and the turnover-linked incentive from 1.20 to 1.85 per cent of net sales turnover, in both cases rising with the category and the area category.

One further incentive is worth carrying because it is small and specific. For in-house research and development the government pays 50 per cent of the cost up to ₹1 crore for a patent, copyright, trademark or registration of a geographical indication.

The exemptions are a separate list and are quoted as often. 100 per cent exemption from electricity duty and 100 per cent reimbursement of mandi fees for seven years, and 75 per cent exemption with 25 per cent reimbursement of stamp duty and land conversion charges.

Progress up to December 2025: eligibility certificates issued to 3,914 units, covering proposed investments of ₹1.65 lakh crore. Proposed investment is not investment made, and the Review does not claim otherwise.

4. MSMEs, and the entrepreneurship schemes

The MSME Policy 2024 is designed as a "One Stop Shop" and runs to 31 March 2029. Its headline provisions:

GovtSource: Economic Review 2025-26, chapter 5, read directly, and the Rajasthan MSME Policy 2024 itself. Up to December 2025, ₹188.92 lakh had been distributed to 343 applicants under the policy, which is a small figure against the list of entitlements and is given as the Review gives it.

Two things come from the policy document rather than the Review. The policy states it remains in force until 31 March 2029 and that it supersedes the Policy Package for Micro, Small and Medium Enterprises, 2022. It also takes effect from the date of its notification in the official Gazette, which is why the Review's date of 8 December 2024 is the commencement date rather than a date printed in the policy text.

The facilitation law is separate from the policy and is asked separately. The Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act was enacted on 17 July 2019. A unit files a Declaration of Intent on the Raj Udyog Mitra portal and receives an Acknowledgement Certificate, which exempts it from approvals and inspections under state laws for five years.

Five years, not seven. The figure is a common distractor, and the Review states five. During 2025, 1,405 Acknowledgement Certificates were issued: 944 micro, 307 small and 154 medium.

Fourteen micro and small enterprise facilitation councils handle delayed-payment cases under the central MSMED Act, 2006, and redressed 1,517 cases up to December 2025. MSME Investor Facilitation Centres operate in each District Centre, and there are 43 District Industries and Commerce Centres with 6 sub-centres.

The credit-linked schemes, which are asked by their percentages

GovtSource: Economic Review 2025-26, chapter 5, read directly.

Progress figures, all up to December 2025 and therefore nine-month figures. BRUPY: 1,022 applications sanctioned, 890 beneficiaries, ₹222.95 crore lent, margin money of ₹43.21 crore to 660 applicants and interest subsidy of ₹14.73 crore to 2,370. VKYUPY: 2,075 applications received, 125 sanctioned, ₹27.34 crore disbursed to 73 applicants. YUPY since inception: ₹764.43 crore sanctioned to 706 units.

On PM Vishwakarma the state holds national ranks that the Review states as its own. Second nationally in loan sanction (57,524 loans) and loan disbursement (53,552 loans), and third in artisans trained (2.14 lakh) and toolkits distributed (1.13 lakh), as of December 2025.

Udyam registration is the volume figure. 4.41 lakh units registered during 2025-26 up to December, with investment proposals of ₹11,146.03 crore and expected direct employment for 24.40 lakh persons. Expected employment is a projection attached to registrations, not jobs counted.

5. Industrial infrastructure

RIICO has developed 445 industrial areas. During 2025-26 up to December it acquired 7,654.63 acres, developed 19 new industrial areas, allotted 1,499 plots, spent ₹1,220.99 crore and recovered ₹2,050.73 crore.

Two Special Investment Regions carry the corridor strategy.

GovtSource: Economic Review 2025-26, chapter 5, read directly. KBNIR's villages are described as belonging to the former Alwar district, which is the Review's own wording after the 2023 reorganisation.

JPMIA Phase A covers 1,577.69 acres at an estimated ₹921.66 crore. The National Industrial Corridor Development and Implementation Trust holds 49 per cent equity at ₹322.80 crore, with ₹105 crore of soft debt carrying a ten-year moratorium and ten-year repayment linked to the ten-year G-Sec rate. Phases B and C are at land-acquisition notification stage, for 1,086.45 and 1,373.36 hectares respectively.

Both nodes sit on the Delhi-Mumbai Industrial Corridor, whose influence region is a 150 km band on either side of the freight corridor, and they are developed through a joint special purpose vehicle, the Rajasthan Industrial Corridors Development Corporation (RIDCO).

The Western Dedicated Freight Corridor runs Dadri to Jawaharlal Nehru Port over 1,504 km, and about 39 per cent of it passes through 28 districts of Rajasthan.

The specialised parks are a recall list.

GovtSource: Economic Review 2025-26, chapter 5, read directly.

Ease of doing business rests on two instruments. The Rajasthan Enterprises Single Window Enabling and Clearance Act, 2011, and the Raj Nivesh Portal, a one-stop shop for proposals above ₹10 crore. 181 services across 19 departments are integrated, and during 2025 the portal approved 1,925 applications involving ₹42,693.70 crore. A Dispute and Redressal Mechanism sits under the Chief Secretary at state level and the District Collector at district level, and its decisions bind all departments.

Under the Business Reforms Action Plan 2024, Rajasthan was named a Top Achiever in Business Entry, Labour Regulation Enablers, Environment Registration and the Services Sector. BRAP-2026 runs from 15 November 2025 to 15 July 2026.

6. One District One Product, for all 41 districts

This is one of the few state tables published on the current 41-district map, which makes it unusually quotable.

GovtSource: Economic Review 2025-26, table 5.5, "District-wise products identified under ODOP Policy 2024", read directly. All 41 current districts appear, including the eight created in 2023 and retained.

Stone and marble dominate the list, appearing in some form for well over a dozen districts, which is itself the point about the state's industrial base. The distinctive entries are the ones a paper will use: Kota Doria for Kota, Thewa Jewellery for Pratapgarh, Kasheedakari for Barmer, Bikaneri Namkeen for Bikaner, Sonamukhi for Phalodi and Mustard Oil for Sri Ganganagar.

Note that three districts share Automobiles Parts (Alwar, Khairthal-Tijara and Kotputli-Behror), all in the Delhi-facing industrial belt, and that Jaisalmer's "Yellow Stone" and Jhalawar's "Kota Stone" are named for stones rather than for their own districts.

Progress under the policy is modest and is stated as such. 272 units assisted with ₹1,154.36 lakh in total, of which margin money support accounts for ₹912.03 lakh across 61 units and marketing assistance ₹203.02 lakh across 149.

7. Exports

GovtSource: Economic Review 2025-26, table 5.3 and figure 5.6, read directly.

GovtSource: Economic Review 2025-26, table 5.3, read directly. The Review names the top five export items as engineering goods, gems and jewellery, metal, textiles and handicrafts, together more than 67 per cent of exports. Handicrafts is named in that sentence but does not appear as a separate row in table 5.3, so no rupee figure for it is given here.

Exports crossed ₹97,000 crore in 2024-25 and have grown about 84 per cent in four years. Gems and jewellery is the fastest-moving line, rising from ₹4,067 crore in 2020-21 to ₹17,568 crore in 2024-25.

Under the Export Promotion Policy 2024 the reimbursements are percentage-capped, and the pattern repeats across components: 50 per cent up to ₹5 lakh for documentation and certification; 75 per cent up to ₹3 lakh a year for international trade fairs; 75 per cent up to ₹50 lakh for technology upgradation; 50 per cent up to ₹2 lakh for ECGC premium; and a 25 per cent freight subsidy up to ₹25 lakh for first-time exporters under RIPS 2024.

8. The service sector, and the banking system inside it

Services are 47.71 per cent of state value added at current prices and grew 11.15 per cent in real terms in 2025-26, the fastest of the three sectors. The composition is set out in the macro chapter; what follows is the part the Review treats as a sector in its own right.

GovtSource: Economic Review 2025-26, Executive Summary, figure III, "Banking Sector at a Glance", read directly. Figures are for all scheduled commercial banks as on September 2025, which is a mid-year position and not a financial-year figure.

The credit-deposit ratio is the examinable number here. Rajasthan lends 89.61 per cent of what it takes in deposits, against a national 80.43 per cent. Deposits grew 9.75 per cent over the year. A state often described as capital-starved is in fact deploying a higher share of its deposits as credit than the country does.

Note the composition trap. Public sector banks run just over half the branches, but private sector banks at 2,301 outnumber regional rural banks at 1,628, which reverses the order most notes assume.

Marketing and trade institutions round out the sector. The Rajasthan Small Industries Corporation runs RAJASTHALI outlets in Jaipur, Udaipur, Delhi and Kolkata, with handicraft sales of ₹681.90 lakh up to December 2025. RAJSICO has operated an Air Cargo Complex at Jaipur Airport since 1979 and provides dry-port facilities at Inland Container Depots in Jaipur, Bhilwara and Jodhpur. Rajasthan Financial Corporation has lent ₹9,130.07 crore to 84,879 units since establishment, to 31 March 2025.

9. Nowadays — what changed in 2026

Covering 1 January to 30 August 2026. Updated every month until Prelims and Mains.

Mukhyamantri Yuva Swarojgar Yojana was released on 15 January 2026

The scheme targets 1 lakh young people aged 18 to 45, offering interest-free loans, margin money and reimbursement of CGTMSE fees. It carries a 100 per cent interest subsidy, and its limits differ by qualification:

GovtSource: Economic Review 2025-26, chapter 5, read directly. The Review records the release date as 15 January 2026; it reports no progress figures, because the scheme post-dates its data.

The Trade Promotion Policy took effect on 7 December 2025

The Rajasthan Trade Promotion Policy 2025 is in force from that date, aimed at subsidised institutional credit and market access for small traders and micro trade enterprises. It is the newest of the six policies in section 3.

What has not changed

The Economic Review 2025-26 remains the current edition, published with the Budget of 2026-27 on 11 February 2026. No newer sector figures exist, and any 2026-27 number for these sectors would be a projection.

The IIP base year is still 2011-12 and the three-category structure is unchanged. The mining index has not recovered; the latest reading available is the part-year 87.94.

The ODOP list is still the 41-district table of ODOP Policy 2024, and no revision to it was found.

Important for RAS

Prelims Focus

• Agriculture and allied GVA 2025-26 (AE): ₹4.41 lakh crore current, ₹2.23 lakh crore constant; real growth 0.22%
• Within agriculture, livestock is 49.35% and crops 42.61%. Livestock GVA ₹2.17 lakh crore exceeds crops at ₹1.88 lakh crore
• Real growth by sub-sector: crops −5.01%, livestock +5.20%, forestry +2.67%, fishing +0.87%
• Agriculture's share of GVA fell from 28.56% (2011-12) to 25.74% (2025-26)
• Industry GVA ₹4.54 lakh crore current, ₹2.48 lakh crore constant; 26.55% of GSVA; growth +7.02%
• Within industry: manufacturing 40.52%, construction 35.02%, mining 12.42%, utilities 12.04%. Mining is the only sub-sector to contract, at −1.41%
• The IIP has three categories only: manufacturing, mining, electricity. Construction is excluded
• Mining IIP has fallen to 87.94, below its 2011-12 base of 100; general index 153.29 (to November 2025)
• RIPS 2024 from 8 October 2024: 75% state-tax reimbursement for 7 years; minimum investment ₹50 crore manufacturing, ₹25 crore MSME and services, ₹10 crore tourism
• MSME Policy 2024 from 8 December 2024, valid to 31 March 2029
• The Acknowledgement Certificate under the 2019 Act exempts a unit for 5 years, not seven
• BRUPY interest subvention: 9% / 7% / 6% by loan slab; margin money 25% up to ₹25 lakh; 51% SC/ST ownership required
• VKYUPY from 3 September 2025: 8% up to ₹1 crore, 7% from ₹1 to ₹2 crore
• MYSY released 15 January 2026, targets 1 lakh youth aged 18 to 45, 100% interest subsidy
• RIICO has 445 industrial areas; 43 District Industries and Commerce Centres and 6 sub-centres
• JPMIA about 154 sq km in Pali; KBNIR 165 sq km, 43 villages of the former Alwar district
• WDFC: Dadri to JNPT, 1,504 km, about 39% through 28 districts of Rajasthan
• ODOP: Kota Doria (Kota), Thewa Jewellery (Pratapgarh), Kasheedakari (Barmer), Bikaneri Namkeen (Bikaner), Gems and Jewellery (Jaipur), Mustard Oil (Sri Ganganagar)
• Exports 2024-25: ₹97,171.66 crore. Top items engineering ₹19,849.29 crore and gems and jewellery ₹17,567.87 crore
• Banking, September 2025: 9,172 branches, deposits ₹7,72,147 crore, credit ₹6,91,943 crore
• Credit-deposit ratio 89.61% against an all-India 80.43%; 11 banking offices per lakh population

Interview and Mains Angles

• Agriculture grew 0.22 per cent while crops fell 5.01 and livestock rose 5.20. What does that say about where drought risk in Rajasthan is actually absorbed, and what would strengthen the buffer?
• Mining is 12.42 per cent of the industrial sector and its production index has fallen below its own base year, in a state defined by its minerals. What explains the gap between endowment and output?
• Construction is 35 per cent of Rajasthan's industry. Is an industrial sector that leans on construction a sign of investment or of a narrow manufacturing base?
• The credit-deposit ratio is nearly nine percentage points above the national average. Does that indicate financial deepening, or concentration of lending in a few sectors, and what evidence would separate the two?
• The incentive architecture from RIPS 2024 downward is dense and percentage-based. What would you measure to decide whether it is buying investment that would not otherwise have come?

Aggregator Watch

Practice

• Practice: Agriculture, Industry and the Service Sector — 45 exam-style questions on the sector composition, the two definitions of industry, RIPS 2024, ODOP and banking, every answer traced to this chapter.
• Every RAS Prelims Geography question, 2013–2024 — the geography unit's official questions, several of which draw on the same Economic Review.

More in This Series

• Economy of Rajasthan — the unit index
• Rajasthan's Macro Economy and the State Budget — where the sector shares and the GSVA totals come from
• Agriculture of Rajasthan — crops, zones and land holdings behind the agricultural value added
• Livestock and Dairy Development — the half of agriculture that now out-earns crops
• Minerals and Energy — the mineral base behind a mining sector that is contracting
• Caution for Readers — the claims across this site that are genuinely unsettled

Sources & Verification

Written on 30 August 2026. Every figure on this page is read from the Economic Review 2025-26 directly — from its Executive Summary, chapter 1 on agri-food systems, and chapter 5 on industrial, mining and economic growth, including tables 5.1 to 5.5. No coaching source, compilation or secondary summary supplied any figure here.

1. The estimate stage is printed with every national-accounts figure. 2025-26 is an Advance Estimate, 2024-25 a First Revised Estimate and 2023-24 a Second Revised Estimate. The sector GVA figures for 2025-26 will be revised at least twice.

2. Part-year figures are labelled everywhere they appear. Most scheme progress in this chapter runs "up to December 2025", which is nine months, and the IIP column for 2025-26 runs only to November 2025. Neither is comparable with the full years printed beside it, and no annualised figure has been derived from either.

3. Proposed, approved and expected are kept distinct from achieved. RIPS 2024's ₹1.65 lakh crore is proposed investment against eligibility certificates. Raj Nivesh Portal's ₹42,693.70 crore is approved applications. Udyam registration's 24.40 lakh is expected direct employment. None is a measured outcome and none is presented as one.

4. Two definitions of "industry" appear on this page and both are the Review's. The national-accounts industry sector includes construction; the Index of Industrial Production does not. The page prints both and names which is which at each use, because the difference is the basis of a common error rather than a discrepancy in the source.

5. One export figure is deliberately absent. The Review names handicrafts among the top five export items but gives it no row in table 5.3. Rather than infer a figure from the residual, the page states that no rupee value for handicrafts is published in the table read.

6. The ODOP conflict is stated rather than resolved. The state's ODOP Policy 2024 list and the central PM-FME scheme's district list are different lists, and the second was not located in this Review. Section 6 carries only the state list, from table 5.5, and the Aggregator Watch records that a second list circulates.

7. Two errors about RIPS 2024 were found and corrected after this page was first written, and the correction is recorded rather than made silently. The page had said that top-up boosters "run alongside" one another. The scheme document says a unit chooses one of Thrust Booster, Anchor Booster or Interest Subsidy, so they are alternatives and do not stack. The page had also given an "Employer Booster of 10 to 15 per cent", following the Economic Review's phrasing. The scheme document calls it the Employment Booster and sets three banded rates of 10, 12.5 and 15 per cent against employment slabs. Both corrections come from reading the Rajasthan Investment Promotion Scheme 2024 itself, which is now cited alongside the Review. Corrected 30 August 2026.

8. Where the Review and the scheme document differ, both are named and the governing one is identified. The Review's "Employer Booster (10-15 per cent)" is a compression of the scheme document's three banded rates. Neither is wrong; the scheme document is the instrument and the Review is a summary of it, and the page says which is which.

Links were checked and resolving on 30 August 2026, each against its final URL rather than its first.

Not asserted here: commencement dates for the Logistics, Textile and Apparel, and GCC policies of 2025, which the Review names without dating; any rupee figure for handicraft exports; the PM-FME district product list; any national rank beyond the PM Vishwakarma ranks the Review states itself; and any 2026-27 figure for these sectors, which does not yet exist.