Rajasthan has emerged as one of the best locations in India for investing in the IT/ITeS sector due to its large pool of trained professionals and lower cost of operations. The state government has established various IT parks and provides attractive incentives like land and electricity duty exemptions to promote investment. Major IT companies like Infosys, Tech Mahindra, and Wipro have set up facilities in Rajasthan, taking advantage of its business-friendly policies and lower costs compared to other major tech hubs in India. While the FDI inflows into the state have room for improvement, Rajasthan remains an attractive destination for the IT industry due to its incentives, infrastructure development projects, and availability of skilled workforce

1. Submitted by:
Mohammad Zafar
MBA - REUI, 1st Semester
IT Sector Overvie w
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2. Rajasthan, is surrounded on the north and north-east by the states
of Punjab, Haryana and Uttar Pradesh; on the east and south-east by
the states of Uttar Pradesh and Madhya Pradesh, and on the south-
west by the state of Gujarat.
Rajasthan is the largest state in the country, area-wise, covering
10.4% of India’s land area. It however, accounts for just 5.7% of the
country’s population, with a contribution of around 4.7% to India’s
GDP; largely through the primary sector.
The state has grown at a robust 8.5% rate in the last five years (FY09
to FY13).
 At the micro-level, the state records a per capita income of Rs
47,506 (as of 2011-12), lower than the national average level of Rs
60,603 for the same year, suggesting that there remains scope for
benefits of growth to seep to the individual level; a critical aspect for a
state that has been for long been classified as a BIMARU state.
Rajasthan- An Introduction
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3. Rajasthan- IT - Scenario
Rajasthan has a vast pool of trained professionals.
Moreover, low cost of operations in well developed cities
of the state makes them attractive locations for IT and ITeS
units.
Rajasthan is emerging as one of the best locations in
India to invest in the IT/ITeS sector.
IT parks with special infrastructure have been set up at
Jaipur, Jodhpur, Udaipur, Kota and Alwar.
Computer software/services and ITeS exports from the
state have expanded at a CAGR* of 18.9 per cent from FY
2008-09 to 2012-13 and stood at US$ 185.2 million in
2012-13.
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4. Rajasthan- IT - Scenario
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About 80 per cent of the IT/ITeS companies in
Rajasthan are in the IT (software development and
some in hardware manufacturing) segment
compared to 20 per cent in ITeS.
Around 77 per cent of IT companies are involved in
software development followed by 12 per cent in the
BPO sector.
Employment in the IT sector is expected to reach
30,000 by 2015 from approximately 15,000 in 2010-
11.
Software
Development
B P O
Medical
Transcription
Hardware
77%
8%
12%
3%
Fig: IT Companies in Rajasthan by Area of Operation

5. 5
Rajasthan- IT – Key Players
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 Infosys was set up in 1981; it is engaged in IT consulting, modular global
sourcing, process re-engineering, and BPO services in India and several other
countries
 Infosys BPO, the BPO services division of Infosys, has opened BPO campuses
at the Mahindra Worldcity, Jaipur, Rajasthan.
 Tech Mahindra is a global systems integrator and business transformation
consulting firm focused on the communications industry.
 It provides a wide variety of services ranging from IT strategy and consulting
to system integration, design, application development, implementation,
maintenance and product engineering.
The company provides a wide range of business process, technology and
knowledge services in finance and accounting, collections and customer
relations, insurance, procurement and supply chain, analytics, software and IT
infrastructure.
It recorded a turnover of US$ 1.9 billion in 2012. The company employs
about 60,200 professionals. It has a global operation centre is in Jaipur.

6. 6
 Wipro Technologies was established in 1945; it is engaged in IT services,
product engineering, technology infrastructure services, BPO and other
consulting solutions.
It recorded a turnover of US$ 6.9 billion in 2012-13.
Wipro Technologies has set up a campus at the Mahindra World City in Jaipur.
Rajasthan- IT – Key Players
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7. 7
Rajasthan- IT – Polices of State
Rajasthan Industrial and Investment Promotion Policy (RIIPP) 2010:
Improving the business climate through policy initiatives and systemic changes
Developing high quality infrastructure
 Enhancing skill levels and employability by setting up training institutes in PPP
 Easy availability of land for projects
IT & ITES Policy 2007:
Land rebate up to 60%, depending upon type & size of investment
Exemption of Stamp Duty on registration of land
50% Exemption from electricity duty for 7 years
Simplified Labour Laws. (Women are allowed to work in night shift, self certification under
various State enactments, etc.)
Customized package for Investment beyond 10 crore.
Venture Capital support

8. 8
Rajasthan- IT – Financial Support
Land rebate up to 60% depending on the type and size of investment
50% exemption from stamp duty on registration of land
50% exemption on electricity duty for 7 years. The captive power unit setup by eligible units will
be exempted from payment of Electricity Duty
50% exemption on conversion charge payable for change of land use
Training Incentives: Rs.2,000 per candidate to training centers provide training on
communication/soft skills & whose candidates find placement in IT &ITES Companies
Rebate for patent: Up to Rs.50,000 GoR would reimburse the ITC patent filing costs of individuals
and non-profit organization with the condition that the patent right stays with the state
 A subsidy up to Rs.25 lakh at the rate of Rs. 10,000 per employee would be given to the first five
IT/ITeS companies investing in the State and directly employing more than 50 employees in IT or
100 employees in ITeS sector.
Mega project incentive: Rs.10, 000 per employee, projects that create employment of more than
500 people in the case of IT industry or 1000 people in ITES Industry.
Simplified labour laws (for example women are allowed to work on night shifts)
Floor Area ratio allowed upto 2.5
Investment Subsidy: 30% of taxes which have become due and have been deposited by the
enterprises for 7 years (10 years for MSME)
Capital Investment Subsidy of 50% of capital cost (up to INR 2 million) to BPO/KPO centers

9. 9
Operational SEZs
Company Name/Developer Location Primary Industry
Jaipur SEZ
Jodhpur SEZ
Mahindra Worldcity Ltd
Mahindra Worldcity Ltd
Mahindra Worldcity Ltd
Jaipur
Jodhpur
Kalwara Village, Jaipur
Jaipur
Jaipur
Gems and Jewellery
Handicraft
IT/ITeS
Engineering and related Ind.
Handicraft
SEZs with formal approvals
Company Name/Developer Location Primary Industry
Somani Worsted Ltd.
Mansarovar Ind. Development Corp
Vatika Jaipur SEZ Developer Ltd.
RNB Infra Pvt. Ltd.
Mahindra Worldcity Ltd.
Mahindra Worldcity Ltd.
GENPECT India
Mahindra Worldcity Ltd.
Mahindra Worldcity Ltd.
Mahindra Worldcity Ltd.
Khushkera Ind. Area, Bhiwadi
Jodhpur
Jaipur-Ajmer Expressway
Bikaner
Jaipur
Jaipur
Jaipur
Jaipur
Jaipur
Jaipur
Electronics/Software/ITeS
Handicraft
IT/ITeS
Textile
Handicraft
Light Engineering
IT/ITeS
IT/ITeS
IT/ITeS
Gems and Jewellery
Rajasthan- IT – Development Projects

10. 10
Rajasthan- IT – Investment Mechanism
Single Window Approval: Rajasthan Single Window Clearance System is a single point of contact
to reduce the time and efforts involved in various clearances and approvals of layouts/applications
for the proposed investment, submitted by investors.
Bureau of Investment Promotion: Bureau of Investment Promotion (BIP) is a nodal agency of the
Government of Rajasthan that facilitates investments in various sectors in the state. It provides one-
stop service mainly for large projects, by acting as an interface between entrepreneurs and the
government.
Rajasthan State Industrial Development and Investment Corporation (RIICO): RIICO is the sole
agency in the state that develops land for industrial growth. It provides financial assistance and
other vital infrastructural facilities for industries.
Rajasthan Financial Corporation (RFC): RFC provides medium and long-term loans for new
industrial units in the SME sector. It also assists in planning a balanced development of industries in
the state.
PDCOR Limited: PDCOR Limited (PDCOR) is a company jointly promoted by the Government of
Rajasthan (GoR) and Infrastructure Leasing & Financial Services Limited (IL&FS) to facilitate private
sector investment in the infrastructure sector in the State of Rajasthan.

11. 11
Permission and Clearance
Required
Respective Department of State Time limit within working Days
Land Conversion Revenue Department
Up to 10 hectares: 30 days from submission of
completed application to district collector.
Above 10 hectares: 60 days from submission of
completed application to state government.
Land Allotment
In case the allotment is to be made at the district
level: 30 days from submission of completed
application to district collector.
In case government’s approval is required: 60 days
from submission of completed application to state
government.
Exemption in Land Ceiling
Limit
60 days at the level of state government from the
date of submission of application in the district
collector’s office
Sanction of Loan
Rajasthan State Industrial Development and
Investment
40 Days
Allotments of Plot Corporation (RIICO) 30 Days
Reg. under VAT Act
Commercial Taxes Department
24 Hours
Reg. under CST Act 24 Hours
Tax Clearance Cert. 1 day in case of non default of payment
Rajasthan- IT – Key Approvals Required

12. 12
Rajasthan- IT – Cost of doing Business in Rajasthan

13. 13
Rajasthan- IT – Case Study on Mahindra Worldcity, Jaipur
In partnership with RIICO, Mahindra & Mahindra Group
has established Mahindra World City (MWC), a multi-
product SEZ in Jaipur with an area of 3,000 acres endowed
with high quality infrastructure. Till date, MWC has over 25
customers, including Infosys, Wipro, Deutsche Bank, ICICI
Bank, QH Talbros, Connexions, Nagarro Software and Tech
Mahindra.
The IT zone in the Mahindra World City is spread over 750
acres, India's largest IT SEZ with plug-and-play facilities and
robust connectivity.
Promoted in a PPP between the Mahindra Group and
RIICO (a Govt. of Rajasthan undertaking), Mahindra World
City, Jaipur is at par with the best business destinations in
the world.
Spread across 3,000-acres with a 2,500-acre multi-
product SEZ, the Mahindra City serves as a conduit between
entire North India and the ports of the Western coast.

14. 14
Rajasthan- IT – Advantages and Disadvantages
Disadvantages :
The FDI inflows have not been that impressive for the state. Jaipur is positioned much below the
other regions of India like Mumbai, New Delhi, Bangalore, Chennai, and Kolkata.
The effectiveness of the existing physical planning is hampered by the lack of a coordinated state
development plan, inadequate resources and institutional weaknesses.
 Government Instability.
Advantages:
The State currently has 126 registered STPI units (2010-11) including key players
A highly attractive and competitive incentive package
Rajasthan has an abundant talent pool with over 1,300 higher level educational institutions with
an annual intake capacity of over 4.2 lakh students.
The State offers lower manpower costs, lower staff attrition rates, lower land and office space
costs and access to large pool of relatively untapped educated professionals.
Costs for IT professionals in Rajasthan such as software analysts and project coordinators are
approximately 15-20% lower compared to NCR.
It is estimated that by 2018 about 40% of employment in the sector will be in Tier-2 and Tier-3
areas compared to less than 10% today.

15. 15
Rajasthan- IT – References
http://www.rajasthan.gov.in/StateProfile/BusinessOpportunities
http://www.mahindraworldcity.com/jaipur
http://investrajasthan.com/special-economic-zones.cms
Thank You