LOGISTICS AND WAREHOUSING

INDIA LANDSCAPE

Key National Strategic Priorities

India to achieve GDP size of USD 35 trillion by FY 2047
India ranked 38th out of 139 countries, as per the World Bank's Logistics Performance Index Report 2023.
154 projects worth USD 7 Bn identified in the logistics sector for inviting investment which includes industrial parks, logistics parks, Inland Containers Depot (ICD) and warehouses.
Under PM Gati Shakti - National Master Plan for Multi-modal Connectivity 22 Greenfield Expressways, 23 other key infrastructure projects & other highway projects and 35 Multi-Modal Logistics Parks (MMLPs) to be developed.
The Bharatmala Pariyojana aims to connect 550 District Headquarters with a minimum 4-lane highway comprising 50 corridors (6 NC & 44 EC). It targets to move 80% freight traffic to NH by interconnecting 24 logistics parks, 8,000 km long 66 inter–corridors, 7,500 km long, 116 feeder routes and 7 north-east Multi-Modal waterway ports.

Rajasthan Landscape

Rajasthan: Key Sector Performance:

As of 2021 Rajasthan has 17 of the country's 41 industrial parks which were rated as leaders or best performing under Industrial Park Rating System (IPRS 2.0) by DPIIT.
Rajasthan experienced unprecedented investment in the rural roads, highways and expressways in the last 10 years.
As part of the PM Gati Shakti National Master Plan, the Ministry of Road Transport and Highway plans to develop Chittor - Thatchpur Expressway in Rajasthan.
Rajasthan has 1 functional Multi-Modal Logistics Park (MMLP) with export facility at Kathuwas, Alwar.
Under the Sagarmala Programme, a MMLP at Swarupganj (CONCOR), Sirohi is under implementation.
Rajasthan State Warehousing Corporation (RSWC) operates 93 warehouses with total storage capacity of 16.08 lakh metric tonnes.

Rajasthan: Value Proposition for Logistics and Warehousing Investors

Rajasthan provides access to around 40% of India's market in the neighboring states and also serve as an indispensable medium of transport between North-Indian states and the ports on the Western of India.
There are 4 Greenfield Corridors under Bharatmala Pariyojna, are passing through Rajasthan.
Rajasthan has 3rd Largest network of national highways with 20 major National Highways, 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.
Delhi Mumbai Industrial Corridor (DMIC) cover over 58% of the State's area.
Rajasthan has a thriving ecosystem for manufacturing of goods for exports as well as for domestic consumption.
Logistic companies can thus expect healthy demand from industrial clusters in and around major manufacturing hubs, especially:
- Sitapura, VKIA, Bindayaka, Kukas, Jhotwara and Bagru in Jaipur - Garments, Furniture, Engineering Goods, Tableware Ceramics, Auto components etc.
- Boranada, Basni and Mandore in Jodhpur - Furniture, Steel, Agro, Stones, Handicrafts etc.
- Madri, Sukher, Kaldwas in Udaipur - Minerals, Stones, Electrical, Handicrafts etc.
- Karni, Beechwaal, Khara in Bikaner - Wool, Agro, Mineral products etc.
- Bhiwadi, Neemrana, Ghiloth and Matsya IA near Alwar in NCR - Auto components, Electronic Goods, Pharmaceuticals, Chemicals, Engineering items, ceramics, glass etc.
- Ajmer as a major transit node connecting most parts of Rajasthan - producing mineral products, stones, fluoriculture etc.
- Kota as a major producer of fertilisers, stones, cement and handicrafts etc.
- Bhilwara as a major producer of textile products, especially suitings.
- The high growth potential in mining of major and minor minerals provides a robust growth potential for efficient transport of raw minerals to industries across India.
- Also, with well populated cities like Jaipur, Jodhpur, Ajmer, Udaipur, Kota and Bikaner; Rajasthan provides ample consumer demand for efficiency in logistics networks.
Rajasthan has developed 415+ industrial parks spread over 51,500 acres of Industrial land.

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

Universities: There are 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 (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.
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 2022 (RIPS 2022)

View Policy

Asset Creation Incentives (ACI)

Capital Subsidy equivalent to 25% for building logistics infrastructure up to INR 15 cr, for buying equipment, plant and machinery up to INR 1 cr OR
Interest Subsidy of 7% on term loan taken from financial institutions or state financial institutions or any banks recognized by RBI, for investment in logistics infrastructure for 7 years up to INR 2.5 cr for Multi-Modal Logistics Hub and up to INR 1.5 cr for logistics park.

Special Incentives

Enterprises undertaking green and sustainable initiatives such as EV for transport of goods shall be eligible for a 25% subsidy on cost of capital of setting up/undertaking such initiatives, up to INR 50 lakh.

Exemptions

100% Exemption on Electricity Duty for 7 years
100% Stamp Duty & Conversion Charge Exemption
100% Exemption in Mandi Fee for 7 years

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