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Rising Rajasthan Summit: MSME Conclave
Daily Bulletin # 3 | December 11, 2024

Valedictory Session | Economic Development, Innovation, and Employment Creation

MSMEs form the backbone of Rajasthan’s economy, contributing 25 percent to the state’s Gross State Domestic Product (GSDP). Chief Minister Bhajan Lal Sharma acknowledged their critical role in inclusive economic development, innovation, and employment creation. However, he emphasised how historical neglect has hindered their growth. To address this, the Rajasthan Investment Promotion Scheme (RIPS) 2024 provides targeted benefits for MSMEs, such as land and machinery loans with a 6 percent redemption for up to seven years, enabling industrial expansion and modernisation.

The third day of the Rising Rajasthan Global Investment Summit highlighted the signing of MoUs worth ₹35 lakh crore, underscoring the state’s ambitions for a Viksit Rajasthan. Deputy Chief Minister Diya Kumari affirmed the government’s commitment to realising these agreements on the ground, reflecting its dedication and proactive approach within the first year of governance. Similarly, Deputy Chief Minister Premchand Bairwa emphasised the state’s successful positioning as a premier global investment destination, setting the stage for a prosperous future.

The government is proactively making efforts to boost industries, including the development of 11 new industrial zones with ₹1,200 crore allocated, ensuring equitable growth across regions like Bikaner, Sawai Madhopur, Barmer, and Nagaur. In the past year, RIICO has established eight industrial areas, including Jaipur Gramin and Abu Road, providing MSMEs with the necessary infrastructure to thrive.

Rajasthan is also leveraging its rural heritage through initiatives like increasing Geographical Indication (GI) tags for local products over the next three years. This strategy aims to boost rural development by granting global recognition and market access to traditional crafts and products.

Despite natural constraints such as arid conditions, Rajasthan has achieved an impressive 11 percent economic growth, as highlighted by Union Minister of Education Dharmendra Pradhan. He emphasised the resilience and resourcefulness of the state’s human capital and entrepreneurial spirit, aligning with its vision of leveraging talent and innovation for sustained development. Rajasthan’s strategic advantage is further underscored by its geographical location, with 25 percent of the National Capital Region (NCR) and 60 percent of the Delhi-Mumbai Industrial Corridor (DMIC) passing through the state.

Minister Pradhan also indicated that Rajasthan is poised to emerge as a knowledge-based economy. Under the guidance of the National Education Policy, the state is focusing on language development and skill enhancement. Advanced laboratories will be established at Rajasthan Central University, NIT Jaipur, and IIT Jodhpur to prioritise international language learning, with full support from the Government of India.

Rajasthan’s comprehensive approach to economic transformation—rooted in MSME empowerment, inclusive growth, and infrastructural advancements—cements its role as a critical player in India’s economic landscape, ensuring a prosperous future for its people.

Panel discussion “TechXcelerate: Digital Transformation for Next Gen MSMEs”

Building on the foundational support from the government, there is a pressing need for MSMEs to better understand market demand and enhance their efficiency in delivering products. Mr Rajneesh Kumar, CCO of Flipkart, suggested that workshops aimed at raising awareness about seller onboarding and digital platforms have already proven successful in generating entrepreneurs and employment, showcasing the transformative power of collaboration.

During the panel discussion, it was highlighted that contract manufacturing opportunities and a review of government schemes are vital for doubling MSME growth. Ensuring entrepreneurs benefit from these initiatives while addressing challenges like Non-Performing Asset (NPA) recovery will further empower the sector. Skilled labour was identified as another critical factor, with Rajasthan prioritising workforce readiness through the establishment of the largest skill development centre in Jaipur.

Members of Laghu Udyog Bharati emphasised the extensive consultations with stakeholders, which highlighted the need for increased financial access, improved connectivity, and enhanced skill adaptability, particularly in rural areas. Programmes such as the RAMP initiative, Digital MSME Schemes, and online platforms like TReDS and GeM are pivotal in addressing these challenges.

The panel concluded that Rajasthan’s MSME sector, supported by government initiatives and digital platforms, is crucial for economic growth. With a focus on market adaptability, skilled labour, financial access, and rural connectivity, these efforts position Rajasthan as a key contributor to India’s vision of becoming a high-income country by 2047.

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