IT & ITeS

INDIA LANDSCAPE

Key National Strategic Priorities

India's IT industry expected to reach the USD 350 bn mark by 2026
India's data center market value is projected towards $10.09 billion by 2027, boasting a 15.07% CAGR throughout 2022-2027.
AI and new-age technology to boost India's annual growth rate by 1.3% by 2035.
India's technology industry revenue was valued at USD 245 bn in FY2023.
Information & Technology sector has grown at 9.4% in FY 2024.
1580+ Global Capability Centres.
Data centers in India have attracted investment of USD10 bn since 2020.
India's total IT & ITeS exports during FY 2024 was USD 200 bn.
India is one of the fastest digitizing economies globally.

Rajasthan Landscape

Rajasthan: Key Sector Performance:

State Data Centre: Launched a state-of-the-art, tier-4 Data Centre with 800 racks in Jaipur and 1 in Jodhpur. It is the largest government-owned data center in India.
RajSWAN: Rajasthan fibre-to-home initiative ensures connections of 5 FTTH connections per gram panchayat. Currently, 22,500+ FTTH connections have been commissioned.
Raj Net: 10,686 Wi-Fi hotspots have been provided for free internet in the state.
E-Mitra: 600+ services of state government departments /private organizations are being provided electronically through more than 80,000+ e-Mitra Kiosks to the citizens of the State.
Rajasthan Startup: iStart Portal acts as a single window for Startups. Along with this, the Q-Rate Ranking System, Incubator, Innovation challange, Innovation Hub (Jaipur, Jodhpur, Kota) iStart Nest (Jaipur, Bharatpur, Bikaner, and Udaipur) are included in the start-up program of the State. Rajasthan has already registered 4895 startups (DIPP Recognised Startups).
- School Startups - School Startups will be connected to techno hubs through the Hub and spoke model. A total of 30,373 students have been registered in the School Startup till March 2024.
- Rural iStart: A total 805 rural startups and 109 self-help groups have been registered under the Rural iStart program till March 2024.
- iStart: The department is located at the Bhamashah techno hub in Jaipur and other educational divisional HQ are at Kota, Udaipur, Pali, Jodhpur, Bikaner, Churu, and Bharatpur.
- iStart has 8 incubation centres,
  - 4900 registered startups,
  - 33,650 employment generated
  - Raised investment of Rs. 947+ crores

Rajasthan: Value Proposition for IT & ITeS Investors

Rajasthan is committed to the development of IT & ITeS sector through infrastructure support. Mahindra World City in Jaipur provides an excellent location with world-class facilities, in proximity to a large and well-developed market. An Amrit Global Technology and application center is being developed over 37 hectares near Jaipur International Airport.

Connectivity: Rajasthan is well-connected by air, road, and rail. Major cities like Jaipur, Udaipur, and Jodhpur have airports with flights to and from key Indian cities and international destinations. This makes it accessible for both domestic and international tourists.
Rajasthan has 3rd Largest network of national highways and 4th largest rail network in India, providing easy access to major ports such as Mundra Port and JNPT, nine Inland Container Depots, one Air Cargo Complex as well as seven airports with direct international and national connectivity.
58% of the Rajasthan's State area is within Delhi Mumbai Industrial Corridor (DMIC).

Rajasthan is actively developing its skilled workforce in the IT and ITeS sectors, with a sharp focus on comprehensive skill development initiatives.

Universities: There are 88 total 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 (IIT) – 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.
Rajasthan Centre of Advance Technology (RCAT): R-CAT was launched in Jaipur, to skill and upskilling of State youth to strengthen employability and entrepreneurship in Rajasthan. R-CAT is adopting the outward-in approach and brought Tech Giants like Apple, Microsoft, EC Council, Phytec Embedded, Oracle, Cisco, VMWare, SAS, RedHat, Adobe, and Autofina Robotics on one platform for the aforesaid objective.

Policies & Incentives

Rajasthan Investment Promotion Scheme 2022 (RIPS 2022)

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Tourism is designated as a key sector under RIPS 2022, offering the following benefits to the service sector.

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 -10-20% of EFCI* to be disbursed in annual instalments over 10 years OR
Turnover Linked Incentive (TLI) -1.00% - 1.40% 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

Additional Incentives

Thrust Sector Booster - 10% Thrust Booster on top of ACI chosen OR
Regional/Sectoral Anchor Booster - 20 % Regional Anchor booster on top of ACI chosen

Customized Packages

Investment of more than Rs. 500 cr - Option to redistribute benefits among ACI (Capital Subsidy, TLI and SGST reimbursement)
Investment of more than Rs. 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.

Start Up Booster Incentive

Asset Creation Incentives
Investment Subsidy of 75% of State tax due and deposited for a period of seven years from the date of commencement of commercial production.
Seed Support
In sectors identified as “Sunrise Sectors”, one-time financial assistance of 10% of external capital raised to be provided up to INR 30 Lacs
Skill Development Incentives
Reimbursements up to INR 1 lac per startup for training in management, entrepreneurship, or soft skills from a recognized institute
IP Creation Incentive
Reimbursement up to 75% of the costs of acquiring patents up to INR 5 lacs to be provided. For obtaining geographical identification & trademark registration, the State will match the financial assistance provided by Government of India
Quality Certification Incentives
One time reimbursement of 50% of the cost incurred in obtaining quality certification up to INR 25 lacs
Business Incubation Centers
The policy will provide support up to 2.5 Crore to Government institutes & 1.5 lacs to private institutes for setting up business incubation centers

In addition to this, following sector specific policies have been formulated by the State Government.

Rajasthan Startup Policy, 2022

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Rajasthan (IT & ITeS) Policy, 2024 (upcoming)

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.
Under the Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act-2019:
- For the execution of this Act, the Government of Rajasthan launched a web portal 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