Manufacturing Business Ideas in Rajasthan

Top 10 Manufacturing Business Ideas in Rajasthan with Government Subsidies

Top 10 Manufacturing Business Ideas in Rajasthan with Government Subsidies Read More »

Manufacturing Business Ideas in Rajasthan Rajasthan Manufactures More Than Marble — And Most Entrepreneurs Still Don’t Know It About ₹10,000 crore are lost in the mineral-based manufacturing sector every year due to the lack of operational manufacturing units in less than 12% of the industrial plots registered with RIICO (Rajasthan State Industrial Development and Investment Corporation) in the state. This is not an indication of an absence of opportunity. It’s a lack of information. The State accounts for 10.4 % of the total area of India, has the largest deposits of minerals after the State of Jharkhand and is the source of more than 90 % of the marble and emeralds in India. It is a source for the entire food processing chain of the country with its base of agriculture cumin, coriander, mustard, guar. In recent years, the Rajasthan government has been implementing the Industrial Incentive Schemes of the Rajasthan Investment Promotion Scheme (RIPS) that provide capital subsidy, power tariff relief, and stamp duty exemption to new manufacturing units. For those who are first generation entrepreneurs, and want to start a business where they can manufacture more cost-efficiently with government grants, Rajasthan is one of the most underrated states of India to set up a business. In this article, the top 10 manufacturing enterprises that are available — now — where the raw material, the market demand, and the subsidy access is available are all there. Get Detailed Project Report (DPR): Guide to Business Opportunities and Startup Projects in Rajasthan The Supply Gap No One Talks About The value of finished mineral products, processed agro commodities, and specialty textiles imported into India is more than ₹1.2 lakh crore per year, and this can be replaced by local production in raw material-rich states such as Rajasthan. Rajasthan’s contribution to the overall manufacturing GSDP of India is less than 5% as per the Department for Promotion of Industry and Internal Trade (DPIIT), which is significantly lower than what the dependence of mineral and agricultural base should be able to provide. Try using processed cumin (jeera). Rajasthan and Gujarat account for more than 70% of world’s supply of cumin. However, the value-added cumin products (cleaned, graded, packaged and exported) are controlled by a few big processors. More than 60 percent of the cumin that leaves the Nagaur, Barmer and Pali districts of Rajasthan is still used as raw material without processing, thus foregoing processing margins. The situation is similar with marble also, Kishangarh has more than 3,000 traders for marble but less than 400 processing unit with proper CNC machine. Another underutilized industry is textile. Rajasthan is a major cotton, wool and silk producing state with the bulk of the products being exported as raw fibre. The Rajasthan Small Industries Corporation (RSIC) has reported that textile and apparel exports in the state are under ₹8,000 crore per year, which is less than the export in Gujarat and Maharashtra, both of which are under ₹32,000 crore per year. Manufacturing facilities, skilled workforce and raw material available. What is lacking is an organized well-capitalised MSME processing unit. TABLE 1: Top 10 Manufacturing Business Ideas in Rajasthan — Overview # Business Idea Investment (INR) Govt Scheme Net Margin 1 Cement & Lime Products ₹40–80 lakh PMEGP, MSME Rajasthan 14–18% 2 Marble & Granite Processing ₹25–60 lakh RIPS, MSME Clusters 20–28% 3 Agro-Processing (Cumin/Coriander) ₹15–35 lakh PMEGP, SFURTI 18–24% 4 Mustard Oil Extraction ₹12–30 lakh PMEGP, MUDRA 16–22% 5 Textile & Garment Manufacturing ₹20–50 lakh PLI Textiles, ASPIRE 15–20% 6 Handmade Paper & Packaging ₹10–25 lakh SFURTI, PMEGP 22–30% 7 Salt Processing & Iodisation ₹8–20 lakh PMEGP, NSIC 18–25% 8 Handicraft & Block Printing ₹5–15 lakh SFURTI, Stand-Up India 25–35% 9 Plastic Pipes & Fittings ₹35–75 lakh CGTMSE, RIPS 14–20% 10 Solar Panel Assembly ₹50 lakh–1.2 cr PLI Solar, KUSUM 12–18% Source: Ministry of MSME (msme.gov.in), RIICO Industrial Data, Entrepreneur India Research Get Detailed Insights from This Book: Solar PV Power and Solar Products Handbook Why This Is the Right Window to Enter There are three policy changes right now which are creating good tailwinds for the first time manufacturers in Rajasthan. The first step is that the Production Linked Incentive (PLI) Scheme is being expanded to 14 sectors including textiles, food processing, and solar PV. The PLI is tiered and thus provides 4-6% on incremental sales for the next 5 years for the small manufacturers having investment ranging from ₹50 lakh to ₹2 crore. Second, the industrial policy of the State of Rajasthan, called ‘Rajasthan Industrial Policy (RIPS)’ has been updated to focus on MSME clusters in Tier-2 and Tier-3 towns in the State. In some districts such as Jodhpur, Bikaner, Ajmer, Kota etc., industrial areas have been identified with pre-laying of infrastructure facilities which cuts the infrastructure cost by 20-30% for the new industrial units as compared to the greenfield industrial set up in non-notified areas. Third, Khadi and Village Industries Commission (KVIC), under the control of the central government provides capital subsidy of 25-35% for manufacturing units with project cost up to ₹25 lakh. The subsidy is increased to 35% for SC/ST/women entrepreneurs or rural units. PMEGP is open to first-time business founders, as they don’t have to have experience in a business for it. There are other schemes that are relevant, such as MUDRA (collateral-free loans up to ₹50 lakh under the Tarun category), CGTMSE (credit guarantee for loans up to ₹2 crore without collateral), SFURTI (cluster development grants for rural artisan and agro-processing units), and Stand-Up India (bank loans of ₹10 lakh to ₹1 crore for SC/ST and women entrepreneurs starting their first manufacturing venture). How to Set Up a Manufacturing Unit in Rajasthan: Step-by-Step The following is an explanation of the set-up guide, covering the case of a processing unit that uses marbles as a product, which is one of the most easily accessible and high return manufacturing entries in Rajasthan. The process broadly applies to agro-processing and mineral-based manufacturing as well. Step 1 — Business Registration and Licences