AGRI AND FOOD PROCESSING

INDIA LANDSCAPE

Key National Strategic Priorities

Producer of milk contributing 24.64% of global milk production

Producer of Fruits, Vegetable, Cashews and Tea in the World

Sector employs around 1.93 million people, accounting for 12.4% of employment in the registered factory sector
India is the largest producer of millets in the world with about 20% of global share in production (2022)
Strong government focus - USD 109 bn outlay on production linked incentive scheme for food processing industry (PLIFPI) from FY 2022 to FY 2027
USD 535 bn food processing output anticipated by FY 2026
Received FDI equity inflow of USD 44.4 bn in FY 2024.
Agricultural exports reached USD 53.1 bn in FY 2023
Contribution of livestock in total agriculture and allied sector Gross Value Added (GVA) has increased from 24.38 per cent (2014-15) to 30.19 per cent (2021-22)

Rajasthan Landscape

Rajasthan: Key Sector Performance:

Agriculture and allied sectors contributed to 29% in Rajasthan's Gross State Value Added (GSVA) at current prices. (2022-23)
Accounts for more than 10% of the nation's milk production

1st

Rank in production of Moth Beans, Mustard, Pearl Millet (Bajra), Guar Gum, Oilseeds, Fenugreek, Isabgol, medicinal & aromatic crops, and coarse wool (with largest population of Goats & Camels)

2nd

Rank in production of Spices, Fennel, Cumin, Pulses, Garlic, Nutri / coarse cereals and coriander.

3rd

Rank in organic Farm Production for the year 2023-24

Rajasthan: Value Proposition for Agri and Food Processing Sector

Rajasthan is committed to the development of the agri- and agro-processing sector through infrastructure support as given below:

Agro Food Parks: Infrastructure like Agro Food Parks at Kota, Jodhpur, Sriganganagar and Alwar has been developed by RIICO. They provide essential facilities for food processing and value addition.
Rajasthan has one approved Mega Food Park in Bikaner and one operational GreenTech Mega Food Park in Ajmer
3 agro processing cluster in Jaipur, Jodhpur and Tonk.
The State has 415+ well developed industrial areas with 51,500 hectares of industrial land available (No. 4 in India)

All major strategic locations in the State are well connected to domestic and export markets through multiple modes. The State is served by the 3rd Largest network of national highways with 20 major National Highways. Further, over 58% of State's area within Delhi Mumbai Industrial Corridor (DMIC). Additionally, the State has the 5th largest rail network in India. Out of the 44 Bharat Mala economic corridors, 9 pass through Rajasthan. Major cities like Jaipur, Udaipur, and Jodhpur have airports with flights to and from key Indian cities and international destinations.

The State has many national and internationally reputed institution contributing to the growth and development of Human Capital in the State.

Universities: Rajasthan has a total of 88 universities out of which 53 private universities, 28 state-funded universities, and 7 other universities.
Nationally and Internationally Renowned Institutions: The State is home to numerous technical institutes, including prestigious ones like the Indian Institute of Technology (IIT) Jodhpur, Indian Institute of Management, Udaipur, Indian Institute of Information Technology (IIIT) - Kota, National Institute of Logistics and Material Management, Udaipur, National Law University, Jodhpur, All India Institute of Medical Sciences, Jodhpur, FDDI - Jodhpur, The Birla Institute of Technology & Science, Pilani etc.
Maharana Pratap University of Agriculture and Technology, Udaipur, NIMS School of Food and Agriculture Engineering in Jaipur and Amity Institute of Biotechnology in Jaipur offers courses/training on different fields of agro and food.
Availability of Manpower: Pool of a large young, trained workforce with 62% of Indian population in the working age group of 15 to 59 years.

Policies & Incentives

Rajasthan Investment Promotion Scheme (RIPS) 2024

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Asset Creation Incentives (ACI)

Investment Subsidy (SGST Reimbursement) -75% of the State tax due and deposited for a period of 7 years OR
Capital Subsidy -13-28% of EFCI* to be disbursed in annual instalments over 10 years OR
Turnover Linked Incentive (TLI) -1.20% - 2.0% of Net Sales Turnover to be disbursed annually for 10 years

Special Incentives

Employment Booster -10% - 15% booster on chosen Asset Creation Incentive
Training & Skilling Incentive - Skilling support in form of a Training Subsidy of Rs. 4000 per worker per month for 6 months for training delivered in Rajasthan

Exemptions

100% Stamp Duty
100% conversion charges
100% exemption of Electricity duty for 7 years
100% exemption of Mandi Tax for 7 years

Additional Incentives

Thrust Sector Booster - 10% Thrust Booster on top of ACI chosen OR
5% Interest Subsidy for period of 5 years OR
Anchor Booster - 20 % Anchor booster on top of ACI chosen

Customized Packages

Investment of more than INR 500 cr - Option to redistribute benefits among ACI ( Capital, TLI and SGST reimbursement)
Investment of more than INR 1000 cr and employment of more than 800 persons - Customization on a higher NPV of the Asset Creation Incentive upto 20% of the NPV of the chosen ACI.

Other unique features-

The State will also allow telescoping and upgrade the earlier set of incentives paid on a lower slab basis the total incentives applicable once the full investment is completed.
If a group/cluster of enterprises within the same or nearby premises (within 50 km radius), come in with a consolidated investment proposal, then it shall be eligible for cluster incentives.

Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2019

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For the execution of this Act, the Government of Rajasthan launched a web portal "https://rajudyogmitra.rajasthan.gov.in" on 12th June 2019 for filing applications.
Issuance of 'Acknowledgement Certificate' up on submission of 'Declaration of Intent' electronically or physically to the nodal agency.
On basis of said certificate an MSME unit is exempted from approvals and inspections under all State laws for 5 years from the date of issuance of the Acknowledgement Certificate.

Ease of Doing Business

RajNivesh portal provides a single point, online interface and a time-bound clearance mechanism by acting as a one-stop information / registration / approval / tracking centre for clearances / approvals
The platform integrates 120+ services across 14 departments, emphasizing the State's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development
Officials from 14 concerned Departments of State government have been deputed to Bureau of Investment Promotion, Rajasthan for facilitation of investment proposals.