Rajasthan needs ease of doing business, cost cuts: Experts at BS Samriddhi

Experts at Business Standard's Rajasthan Samriddhi 2025 said the state must cut business costs, improve logistics, and ease rules to attract investors and boost growth opportunities

Rajasthan needs to strengthen its business ecosystem by cutting costs and improving logistics, the industry leaders said at Business Standard’s Rajasthan Samriddhi 2025 event in Jaipur on Wednesday.

 

Speaking at a panel discussion moderated by Editorial Director A K Bhattacharya on the topic "Invest Rajasthan: An economic roadmap", Digvijay Dhabriya, Chairman of PHDCCI (Rajasthan chapter), said that Rajasthan must focus on reducing the cost of doing business to remain competitive. “The ease of doing business and the reduction of the cost of doing business, that is the most important thing, which I feel Rajasthan should focus on,” he said.

 

 

Dhabriya pointed out that India’s logistics costs remain far higher compared to global peers. “India’s logistic cost is around 13-16 per cent, whereas China’s logistic cost is around 4 per cent to 6 per cent. There is a lot to do in the logistics sector. This will help our economy's viability,” he said.

 

He also flagged the need for better availability of skilled and unskilled labour, adding that promises of developing satellite towns had remained unfulfilled for two decades.     

 

'Rajasthan safer for investors'

 

On investment concerns in other states, Dhabriya said, “We were planning to expand in Calcutta, but we have dropped it because the demographic is changing there, there is insecurity. So if you invest there, you have no idea whether it will be secured or not. But Rajasthan is a safer option. It has a lot of opportunities.”

 

He added that adopting policies similar to China, Dubai, and Singapore could benefit Rajasthan. “We are witnessing a continuing growth at a faster pace. Rajasthan is the best opportunity to invest right now.”

 

According to Dhabriya, land availability remains a critical factor. “The most important thing is land. If you have abundant land, if you’re putting a fixed price and everybody’s getting the land, there is no problem. The problem arises when you have more demand and less supply.”

 

He welcomed Rajasthan’s new policy that allows buyers to purchase land and convert it into industrial use. “The new policy where you buy your land and we will convert it into an industry, this will help ease of doing business in the state.”

 

AI, startups and EVs: New growth frontiers

 

Ajay Data, Managing Director of Data Group of Industries, stressed that Rajasthan must prepare itself for the future economy. “If Rajasthan is looking to become an AI capital, you need the right kind of partnership. You need the right kind of government support. You need the right kind of capital. You need the right kind of infrastructure for technology. You need a great data centre. You need a huge amount of power to support the AI data centre for the AI factory,” he said.

 

Calling friction the biggest hurdle for entrepreneurs, he said, “Entrepreneurs can drive the vehicle at unbelievable speed, and entrepreneurs hate speed breakers. They will organise money, no challenge at all, they will organise resources with no challenge at all, but the friction goes on and on and on, that is what we need to remove.”

 

He also emphasised the role of startups in job creation and innovation. “If we increase the number of startups in Rajasthan from 5,000 to 50,000, we will employ over 500,000 people.”

 

He said Rajasthan could become the AI capital of the world while also tapping into the emerging electric vehicle (EV) sector.

 

'Rajasthan offers value'

 

Subodh Agarwal, IAS, Rajasthan Financial Corporation, summed up the state’s advantage in one line. “What brings people to Rajasthan is the value that Rajasthan offers," he said.   He highlighted that Rajasthan’s future growth lies in leveraging its natural resources and ensuring ease of business in mining.  

“Jaisalmer is sitting on cement grade limestone. In 10 years, Jaisalmer will be the cement capital of India,” Agarwal said, stressing the state’s potential in the cement sector.

 

According to him, Rajasthan’s strength lies in its rich resources. “The revolution has come. The growth will come from what is our strength. The strength is oil solar. Bikaner has the world’s highest potash deposits,” he added.

 

He further pointed out that startups often migrate to other states where valuations are higher. “The problem with startups is that they are geographically free, neutral. Anyone can have a startup in Jaipur and then can move it to Bangalore since they get better values there. They can then sell their start-up in Bangalore and come back to Rajasthan to start a new start-up,” he said.

 

Calling for reforms in the mining sector, he added, “The toughest thing is ease of doing business in mining, and we need to focus on it.”

 

Business Standard launches Jaipur editions in Hindi and English

 

Business Standard on Wednesday rolled out its Hindi and English editions from Jaipur, formally stepping into the Pink City’s media space. With this launch, the English daily now publishes 14 editions, while the Hindi version has grown to seven editions.

 

Until now, Business Standard Hindi was published from six locations — New Delhi, Mumbai, Kolkata, Lucknow, Bhopal, and Chandigarh. Jaipur has now joined the list as the seventh publishing hub.