Legal Ways to invest in Rajasthan

Rajasthan Chief Minister Ashok Gehlot kicked off the two-day ‘Invest Rajasthan Summit 2022’ in Jaipur on October 7, 2022. The two-day conference was attended by dignitaries from the world’s most recognizable corporations. Industry professionals and leaders shared their perspectives during the summit’s conclave and panel discussion. The Chief Minister inaugurated 25 industrial zones around the state, laid the groundwork for 33 industrial units, and opened 18 industrial units. The dedication and laying of the cornerstone will improve local employment and revenue, while the industrial expansion will accelerate in several state districts.[1]


Rajasthan is India’s largest state in terms of total land area. It is one of the states with the fastest economic growth, with an average GDP growth rate of 11.6% between 2011-12 and 2017-18. It is India’s second-largest producer of oilseeds and one of the country’s main producers of edible oils. It is also India’s biggest producer of wool and a significant opium grower and consumer.[1]In light of these developments, let’s look into some of the social sectors, and legal investment methods in Rajasthan:

  •   Agriculture and Food Processing
  • Education 
  • Medical
  • Real Estate


Rajasthan is a big producer of agricultural, horticultural, and animal products with value-addition potential. Rajasthan’s government is actively encouraging investment in the food processing/agro-processing industry. The Rajasthan Investment Promotion Scheme, 2022 has designated the Agro/Food Processing Industry as a priority industry. As a result, entrepreneurs interested in establishing a food or agro-processing plant in Rajasthan are eligible for further subsidies and incentives.

The Rajasthan Agricultural Produce Market Act, of 1961, outlines the method for forming markets for such sectors, as well as market committees for their control.

Section 5-C (1) provides that any person may apply to the Director or the authority empowered by the State Government in this regard for the grant of a license to establish a private sub-market yard under section 5-A or a consumer-farmer market under section 50B, or for the renewal of a license granted under this section, in the form and manner prescribed. Such an application must be accompanied by the license fees set by the State Government. The application will be denied for the following reasons:

  • the market committee dues are outstanding against the applicant;
  • the applicant is a minor or is not bonafide;
  • the applicant has been declared defaulter under this Act or the rules or bye-laws made thereunder;
  • the applicant has been convicted for any offense and has been sentenced to imprisonment.


Rajasthan benefits from a skilled labor pool due to the presence of prominent educational institutions. Additional educational infrastructure includes various engineering institutions, polytechnics, and specialized skill universities. As part of its commitment to human resource development, the state government has actively pushed the private sector to build training and skilling centers.

Educational institutions may only be created under Indian law as non-profit organizations, such as charity trusts formed under Section 8 of the Companies Act, 2013. Furthermore, the schools must adhere to the infrastructure and financial standards outlined in the applicable affiliation statutes and bylaws of their respective territorial state. In the case of Rajasthan, the Rajasthan Societies Registration Act, 1958, and the Rajasthan Non-Government Educational Institutions (Recognition, Grant-In-Aid and Service Conditions Etc.) Rules, 1993 (“the Rajasthan Education Rules”) govern the registration process of educational institutions such as schools, and universities.

Section 5 of the education rules highlights the procedure for obtaining recognition from the government for establishing non-governmental educational institutions. It states that educational institutions seeking recognition, other than those affiliated with any University or recognized by the Board, must submit the prescribed Form under Appendix – I to the competent authority as specified in Appendix – III, provided they meet all terms and conditions as laid out by the Government from time to time. The application must be submitted by February 28th. The competent authority will complete its review of all applications received by the 31stof March and arrange for an inspection by a party consisting of the Director of Education, the Competent Authority as per Appendix – III, 1 Educationist depending on the institution’s status, and the Head of the Account Branch of the competent authority’s office. Specifically, the Inspecting Party shall inspect the institution while keeping in mind the prescribed norms and conditions prescribed in Appendix – II and submit its report to the competent authority by 30th April, who shall, by 15th May, ask for any additional information required from the institution, and the Institution shall furnish the required information 15th June.


The revolutionary Mukhyamantri Chiranjeevi SwasthyaBima Yojana offers health insurance to all inhabitants and covers every home in Rajasthan. This plan for universal health coverage has drastically transformed the healthcare industry by creating opportunities for the private sector across the board.

There is a high demand for specialist and tertiary care hospitals in India, yet there aren’t enough beds to meet it. The paucity of doctors in rural and semi-urban areas such as in the State of Rajasthan has resulted in residents of these areas lacking access to sufficient healthcare facilities. Many people assume that telemedicine and e-Healthcare will solve the access issue. This industry has evolved in India as a result of the country’s expanding IT sector. For the development of such e-hospitals and physical hospitals of Multi-Specialty, Specialty, and Ayurvedic character in Rajasthan, the Guidelines for the Empanelment of Private Hospitals under the Rajasthan Government Health Scheme[1] (RGHS) apply.


These guidelines outline the criteria for establishing such hospitals, for example – laboratory diagnostic services that are required to be supplied. There is a required application fee of Rs 5,000 and a performance guarantee of Rs 1 lakh only. To fill up the profile details, private hospitals must first connect with their Single Sign-on ID and fill out the Health Care Network Provider Request form. The RGHS staff will review the profile and send an approval/rejection message to the applicant’s registered email address/contact number. Once accepted, the applicant can now use a Single Sign-on ID to access the Health Care Network Provider- Empanelment Module and complete the application form. The instructions for completing the online application form are available on the RGHS web portal.


Jaipur is home to 35 of Rajasthan’s 322 industrial areas established by the Rajasthan State Industrial and Investment Corporation. Furthermore, Alwar, Neemrana, and Bhiwadi are recognized as key industrial growth areas. These industrial zones are well-equipped with roads, stores, telecommunications facilities, water, and power, which help the state’s real estate market thrive.[1]Affordable housing developments have had a substantial and positive impact on the sector. The Central Government’s goal of “Housing for All by 2022”, and the certification of compact, affordable residential units as infrastructure have raised the demand for low-cost housing.

The Real Estate (Regulation and Development) Act of 2016 has made real estate transactions more transparent, while also holding builders accountable and increasing buyer demand. The establishment of the Goods and Services Tax in 2016 greatly improved commercial operations in the country, leading to an increase in infrastructure projects and other real estate ventures.Section 10 of the Rajasthan Special Investment Regions Act, 2016, defines the powers and functions of the Regional Development Authority, as well as the method for gaining approval to invest in the state – this can specifically apply to Rajasthan’s housing and real-estate sectors.[1]

Sections 34-36 call for the submission of a proposal to the Regional Development Authority in such form and manner, together with such fees, as may be specified in the Regional Development Authority’s regulations. When the Regional Development Authority receives a proposal, it must study it and decide whether to approve it with or without modifications or reject it. The Regional Development Authority will issue a letter of approval to the person who proposed Section 34 upon approval of the proposal. Finally, depending on the availability of land and/or building and the requirements of the person who has received a letter of approval, a Regional Development Authority may allot land and/or building and allow him to use the infrastructure facility and public and civic facility.



The Rajasthan government has taken various initiatives to increase the ease of doing business in the state. The One Stop Shop Facility is only one of several initiatives undertaken by the government to create an investor-friendly environment. This facility has been assigned to the Bureau of Investment Promotion. This initiative will provide for the faster and time-bound issuing of various Licences, permissions, and approvals for investments above Rs. 10 crores. The services are available online through the Rajasthan government’s RAJ NIVESH website.

In its Export Preparedness Index, the NITI Aayog has ranked Rajasthan 1st among landlocked states and 4th overall in India.[1] To encourage investment in a variety of sectors, the state has enacted the Rajasthan Industrial Development Policy 2019, the Rajasthan Investment Promotion Scheme, the Rajasthan Solar Energy Policy, the Rajasthan Wind and Hybrid Energy Policy, and the Rajasthan Agro-processing, Agri-business, and Agri-export Promotion Policy.