Economy of Rajasthan and Economic Planning (राजस्थान की अर्थव्यवस्था एवं आर्थिक नियोजन)

1. Macro Profile and Aggregate Indicators of Rajasthan Economy

Nature and Structural Evolution

- Rajasthan is the largest state in India by geographical area (3,42,239 sq km, representing 10.41% of India's landmass), accommodating approximately 5.66% of the country's population. - Historically agrarian and reliant on animal husbandry, the state's economic structure has experienced a steady structural shift toward the services and industrial sectors over recent decades. - **Directorate of Economics and Statistics (DES, Rajasthan):** The premier state nodal institution responsible for computing state macroeconomic aggregates including GSDP, GSVA, Per Capita Income, and price indices. - **Base Year:** The current base year for estimating state income and macroeconomic aggregates at constant prices is **2011-12**.

Gross State Domestic Product (GSDP)

- **GSDP at Current Prices:** - Year 2023-24 (Advance Estimates - AE): **₹ 15.70 Lakh Crore** (approx. ₹ 15,70,053 crore). - Year 2022-23 (Revised Estimates - RE): ₹ 14.14 Lakh Crore. - Nominal Growth Rate: approx. **11.04%** (2023-24 AE). - **GSDP at Constant (2011-12) Prices:** - Year 2023-24 (Advance Estimates - AE): **₹ 8.24 Lakh Crore** (approx. ₹ 8,24,723 crore). - Year 2022-23 (Revised Estimates - RE): ₹ 7.79 Lakh Crore. - Real Economic Growth Rate: approx. **5.79%** (2023-24 AE).

Net State Domestic Product (NSDP)

- Derived by deducting consumption of fixed capital (depreciation) from Gross State Domestic Product. - **NSDP at Current Prices:** Approx. **₹ 14.07 Lakh Crore** in 2023-24 (AE). - **NSDP at Constant (2011-12) Prices:** Approx. **₹ 7.33 Lakh Crore** in 2023-24 (AE).

2. Gross State Value Added (GSVA) and Sectoral Composition

GSVA reflects the value of goods and services produced across the three primary productive sectors: Agriculture, Industry, and Services.

Sectoral Share in GSVA at Current Prices (2023-24 AE)

1. **Agriculture and Allied Sector:** approx. **27.15%** 2. **Industry Sector:** approx. **27.76%** 3. **Services Sector:** approx. **45.09%** (Largest contributor)

Sectoral Share in GSVA at Constant (2011-12) Prices (2023-24 AE)

1. **Agriculture and Allied Sector:** approx. **27.18%** 2. **Industry Sector:** approx. **27.70%** 3. **Services Sector:** approx. **45.12%**

Sub-Sectoral Decomposition

- **Agriculture Sector:** - **Livestock:** approx. **46.41%** (Exceeding the share of crop farming). - **Crops:** approx. 45.94%. - **Forestry and Logging:** approx. 7.30%. - **Fishing:** approx. 0.35%. - **Industry Sector:** - **Manufacturing:** approx. 41.26% (Largest industrial component). - **Construction:** approx. 32.55%. - **Mining and Quarrying:** approx. 12.60%. - **Electricity, Gas, Water Supply & Utilities:** approx. 13.59%. - **Services Sector:** - **Trade, Repairs, Hotels & Restaurants:** approx. 27.69%. - **Real Estate, Ownership of Dwellings & Professional Services:** approx. 24.23%. - **Transport, Storage & Communication:** approx. 12.52%. - **Financial Services:** approx. 10.45%. - **Public Administration:** approx. 9.92%. - **Other Services:** approx. 15.19%.

3. Per Capita Income (PCI)

  • Per Capita Income is the premier metric of individual economic welfare and living standards. It is computed by dividing Net State Domestic Product (NSDP) by the projected mid-year population.
  • Per Capita Income at Current Prices:
    • 2023-24 (AE): ₹ 1,56,149
    • 2022-23 (RE): ₹ 1,43,678
    • Nominal Growth: approx. 8.68%
  • Per Capita Income at Constant (2011-12) Prices:
    • 2023-24 (AE): ₹ 86,134
    • 2022-23 (RE): ₹ 82,318
    • Real Growth: approx. 4.64%
  • Comparison with All-India Average: Rajasthan's per capita income remains slightly lower than the national average (All-India PCI at current prices exceeds ₹ 1.85 lakh), although the gap has narrowed significantly.

4. Price Statistics and Inflation Indices

Wholesale Price Index (WPI)

- Compiled and published monthly by the Directorate of Economics and Statistics (DES), Government of Rajasthan. - **Base Year:** **1999-2000 = 100** (Unique state-level base maintained for Rajasthan). - **Item Groups and Weights:** - Primary Articles (75 items): Weight **33.894** - Fuel, Power, Light & Lubricants (10 items): Weight **16.253** - Manufactured Products (69 items): Weight **49.853** (Heaviest weight) - Total Basket: **154 items** (Aggregate weight 100.000).

Consumer Price Index (CPI)

- **CPI for Industrial Workers (CPI-IW):** Base Year **2016 = 100**. - Three designated centers in Rajasthan: **Jaipur, Alwar, and Bhilwara** (Alwar replaced Ajmer from September 2020 onward). - **CPI-Combined (Rural + Urban):** Base Year **2012 = 100** (compiled by NSO/MoSPI).

5. Employment, Labour Force, and Demographics

Periodic Labour Force Survey (PLFS)

- Administered by MoSPI to estimate Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR). - **Workforce Profile:** According to Census 2011, **43.6%** of Rajasthan's total population are workers. - Main Workers: approx. 70.46% - Marginal Workers: approx. 29.54% - Agricultural Workers: Cultivators and agricultural labourers constitute approx. 62.1% of total workers in the state. - **Flagship Employment Schemes:** - **Indira Gandhi Urban Employment Guarantee Scheme (IRGY-Urban):** Launched on 9 September 2022, providing 125 days of guaranteed wage employment per urban household annually. - **MGNREGA:** Supplemented by Rajasthan state funding providing 25 extra days (total 125 days) to Kathodi, Sahariya, and specially-abled individuals.

6. Poverty and Multidimensional Poverty Index (MPI)

Conventional Income Poverty Lines

- **Tendulkar Committee (2011-12):** Estimated poverty headcount ratio in Rajasthan at **14.71%** (Rural 16.05%, Urban 10.69%), outperforming the national average of 21.92%. - **Rangarajan Committee (2011-12):** Estimated poverty headcount at **21.7%** in Rajasthan.

National Multidimensional Poverty Index (National MPI - NITI Aayog)

- Developed based on the Alkire-Foster methodology in collaboration with OPHI and UNDP. - **Three Dimensions and 12 Indicators:** 1. Health (Nutrition, Child-Adolescent Mortality, Maternal Health) 2. Education (Years of Schooling, School Attendance) 3. Standard of Living (Cooking Fuel, Sanitation, Drinking Water, Electricity, Housing, Assets, Bank Accounts) - **Progress:** - NFHS-4 (2015-16): Multidimensionally poor headcount ratio was **28.86%**. - NFHS-5 (2019-21): Plunged to **15.31%** (a sharp decline of 13.55 percentage points). - Districts with Highest MPI Poverty: Barmer, Jaisalmer, Banswara, Pratapgarh. - Districts with Lowest MPI Poverty: Jhunjhunu, Kota, Jaipur.

7. Human Development and Gender Metrics

Human Development Index (HDI)

- Evaluates achievements across Life Expectancy, Education, and Gross National Income per capita. Rajasthan falls in the Medium Human Development category, recording sustained enhancements through universal health and schooling initiatives.

Vital Demographic Indicators (SRS & NFHS-5)

- **Infant Mortality Rate (IMR):** Reduced to approx. **32** per 1,000 live births (SRS Bulletin). - **Maternal Mortality Ratio (MMR):** Decreased to **113** per 100,000 live births (SRS). - **Life Expectancy at Birth:** Approx. 69.4 years. - **Child Sex Ratio (0-6 years):** Improved from 888 (Census 2011) to 891 (NFHS-5).

8. History of Economic Planning and Institutional Architecture

Five-Year Plans Trajectory

- **First Plan (1951-56):** Focused on agriculture, irrigation, and power (Bhakra Nangal, Chambal projects). - **Second Plan (1956-61):** Emphasized heavy industry, power, and physical infrastructure. - **Eighth Plan (1992-97):** Recorded historic growth of approx. 7.8% per annum. - **Twelfth Plan (2012-17):** Rajasthan's final five-year plan, targeting 'Faster, More Inclusive and Sustainable Growth' (target growth 7.7%). - **NITI Aayog Era (From 1 January 2015):** Replaced planning commissions with 15-year Vision, 7-year Strategy, and 3-year Action Agenda.

State Planning Machinery

- **State Planning Board:** Established in 1953; chaired ex-officio by the Chief Minister. - **Chief Minister's Economic Transformation Advisory Council (CMETAC):** Apex policy think tank. - **District Planning Committee (DPC):** Constitutional body under Article 243-ZD (74th Amendment Act). - Chairperson: **Zila Pramukh** of the respective district. - Member Secretary: Chief Executive Officer (CEO), Zila Parishad. - Mandate: Consolidates draft development plans prepared by Panchayats and Municipalities.

9. Sustainable Development Goals (SDGs)

SDG Vision 2030 Framework

- Adopted by the UN in 2015 comprising **17 Goals, 169 Targets**, running from 2016 to 2030. - State Nodal Department: **Planning Department, Rajasthan**. - Implementation Cell: **SDG Implementation Centre** housed at the Directorate of Economics and Statistics (DES).

NITI Aayog SDG India Index Categories

- States classified into: 1. Aspirant: 0-49 2. Performer: 50-64 3. Front Runner: 65-99 4. Achiever: 100 - Rajasthan is classified as a **Front Runner** state.

Rajasthan State SDG District Index

- Pioneering state initiative publishing district-wise SDG Index reports (v1.0 to v4.0). - **Top Performing Districts:** **Sikar, Jhunjhunu, Jaipur, Kota**. - **Bottom Performing Districts:** **Jaisalmer, Barmer, Pratapgarh, Jalore**.

10. Regional Disparities, Public Finance, and FRBM

Regional Disparities

- **Western Arid Region:** Desert geography, sparse density, water scarcity, strong livestock and solar power economy. - **Southern Tribal Sub-Plan (TSP) Region:** Banswara, Dungarpur, Pratapgarh, Udaipur; forested terrain, fragmented landholdings, forest produce-based subsistence. - **Eastern / North-Eastern Region:** Fertile alluvial soils, DMIC corridor, dense industrialization, and agricultural wealth.

Fiscal Architecture & FRBM Act, 2005

- **Rajasthan FRBM Act, 2005 Mandates:** Fiscal deficit pegged within 3% to 3.5% of GSDP; targeted elimination of revenue deficit. - **State Revenue Structure:** - State's Own Tax Revenue (SOTR): SGST, VAT on fuels, State Excise, Stamps & Registration, Motor Vehicle Tax. - Non-Tax Revenue: High contribution from mining royalties. - Transfers from Centre: Devolution of Central Taxes and Grants-in-Aid.