Raj seen emerging as favourable investment destination: ADB

Rajasthan is expected to emerge as a favourable investment destination on the back of a suitable policy environment, speedy clearances to industrial projects as well as good infrastructure, says an ADB survey.
"The government of Rajasthan is already rolling out many policy and project specific initiatives to address the issues identified by entrepreneurs that would help Rajasthan emerge as the preferred investment destination," it said.
Asian Development Bank (ADB) undertook the survey, which was released at the ongoing Resurgent Rajasthan summit here today, in partnership with the state government.
Time-bound clearances for industrial projects, speedy land approvals and efficient provision of linkage infrastructure are among major incentives highlighted by investors to invest in the state, the survey said.

"The background to the survey was Rajasthan's government's desire to understand what entrepreneurs who are based in the state actually think about the investment climate", said Kho, Country Director for ADB in India, while presenting the survey findings.
In order to reflect a broad view of the industry, interactions were conducted in 17 industrial areas across five divisions -- Jaipur, Ajmer, Jodhpur, Kota and Udaipur -- that account for over 90 per cent of industrial output, investment and employment.

The 15 target industries were selected based on past performance, and on sunrise sectors expected to attract significant investments.
"The RICA investigates why firms are based in Rajasthan, what key factors entrepreneurs are looking for to expand in the state. The survey also identified specific action points for the Rajasthan government to further improve the investment potential of the state," ADB said in the release.

According to the survey, transparency and price certainty in land allocation process, availability of power and a peaceful labour situation were among the major positives to invest in the state.
In terms of availability of power, the state was ranked as
average to good by 93 per cent of respondents, and 74 per cent ranked quality of power as sufficient for production.
Most of the respondents said the state has a good record of labor management, peaceful industrial environment and proactive resolutions of grievances.
They also appreciated the Rajasthan government for being the first state to proactively take up labour reforms.

In terms of policy incentives and investment process, 80 per cent respondents rated the overall business regime of Rajasthan positively.
The survey also said that Rajasthan Investment Promotion Scheme may emerge as one of the most visible industrial schemes.
Respondents cited that online systems for tax filing, employee provident fund filing, employee state insurance and other processes have significantly eased business operations.
"The measures to address ground implementation issues, coupled with Rajasthan's commitment to improving the state's Ease of Doing business ranking, will create a powerful and attractive package to new and existing investors," Kho said.
"To support the government's ongoing efforts, we are also discussing with the government additional initiatives to further improve the investment climate in Rajasthan", she added.

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Referring to ADB survey report, Kho said that time bound clearance for industrial projects, speedy land approvals and efficient provision of linkage infrastructure were highlights by investors and major incentives in western state of Rajasthan.