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Copenhagen Consensus Center

Sector Expert Consultation on Business, Economy and Industry

Rajasthan is one of the leading State for providing a conducive business environment with real GSDP growth hovering around ~6-7% per year for the past few years. The state placed a commendable 7th in the recent ease of doing business rankings across all Indian states, with particular strength in starting a business (3rd overall), registering property (3rd overall) and paying taxes (2nd overall). The State government has undertaken several reforms to improve the business environment and of 340 reforms parameters suggested by the Department of Industrial Policy Promotion along with the World Bank Group, Rajasthan was able to implement 96.43% of them. The government has started undertaking labor market reform to encourage job growth and has targets to boost the number of skilled workers in the state. Policies providing assistance to MSMEs are also in train.


Major Issues

While reforms and robust growth continue, Rajasthan faces a number of challenges in expanding its economy.  Availability of skilled labor is a particular issue and there is still scope to improve ease of doing business rankings.  

The consultation held at the conference hall of Rajasthan Chamber of Commerce at Jaipur on August 9th, 2017, was attended by representatives from industry department, Government of Rajasthan, head of industry associations, representative of RCCI, academia, think tank and research institutions.  The specific deliberations were organized around ‘trade and facilitation’ as well as for ‘skills and job creation.’ Some of the major interventions came up during the discussions are listed below.

Skills and Vocational Education

  1. Expand on-the-job apprenticeships
  2. Mainstreaming of vocational training in education system, including Technical Vocational Education and Training (TVET) in schools
  3. Certification for existing work force (without formal training) in tourism industry
  4. Upgrading tourism skills capacity
  5. Training for MSMEs with focus on latest technology and processes
  6. Vocational training with focus on industry oriented employable skills  
  7. Imparting traditional skills based training to youth
  8. Increased planning and identification of future skill requirements of state to inform vocational education programs
  9. Bring banking industry on board for access to finance and entrepreneurship training
  10. Legislate for acceptance of Udyod Aadhar (of MSME ministry) by financial institution to access credit and financial services
  11. Create online virtual database of job seekers (to stop the overtraining  of youth)

Ease of Doing Business

  1. Expand credit facilitation for MSMEs
  2. Improve and expand land records digitization process 
  3. Improve single window clearance processes to ensure true one touch point with government
  4. Improve access to electricity
  5. Integrate and harmonize all 16 social security laws
  6. Amend insolvency laws to ensure faster resolution of bankruptcy
  7. Improve access to credit
  8. Court records digitization
  9. Increase judicial capacity to handle contract disputes

Trade and Industry

  1. Upgrading trade facilitation infrastructure
  2. Building facilities for standards creating testing laboratories and certification facilities for exports 
  3. Incubation Center for Research and Development
  4. Special economic zones for key industries

List of Participants