Rajasthan Economic Review 2025-26

• 21 Feb 2026

Why in News?

The Rajasthan Economic Review 2025–26, released alongside the State Budget, serves as the definitive document for the state's macroeconomic performance. This year's report is pivotal as it formalizes the "Viksit Rajasthan @2047" roadmap, transitioning from traditional departmental reporting to 13 thematic chapters focused on outcomes.

Key Points:

• Macro-Economic Aggregates: According to provisional data, the state’s Gross State Domestic Product (GSDP) is placed amongst the leading states in terms of size and growth, reinforcing its role in the broader national economic framework.
• GSDP Growth: The Gross State Domestic Product at current prices is estimated at ₹18.75 lakh crore, a growth of 10.24% over the previous year.
• Per Capita Income (PCI):
  • Current Prices: ₹2,02,349 (Crossed the ₹2 lakh milestone).
  • Constant Prices: ₹1,03,189.
• Inflation (CPI): Rajasthan’s inflation remained stable at 4.8%, slightly below the national average, attributed to efficient supply-chain management in the agriculture sector.
• Fiscal Deficit: Managed at 4.3% of GSDP, reflecting a commitment to the revised FRBM (Fiscal Responsibility and Budget Management) targets while maintaining high capital expenditure.
• Tax Revenue: Significant increase in State GST (SGST) collections due to the "Mission Digitization" of tax compliance.
• Sectoral Composition of GSVA:The structural shift in the economy is evident in the Gross State Value Added (GSVA) at current prices:
  • Services (47.7%): The services sector contributes the largest share to the state’s GSVA, driven by tourism, hospitality, financial services, IT-enabled services and logistics.
    • Tourism remains a growth engine, leveraging Rajasthan’s cultural heritage and connectivity improvements.
    • The dominant sector, fueled by a post-pandemic surge in tourism and the "FinTech" initiatives in Jaipur and Jodhpur.
  • Industry (26.5%): Industrial sector performance has strengthened, supported by MSMEs, investment in industrial parks and the implementation of industrial promotion policies.
    • Rajasthan has been focusing on expanding its manufacturing base, renewable energy industries and downstream sectors, leveraging its strategic location and resource endowments.
    • Driven by the MSME Policy 2024 and Rajasthan’s lead in stone, cement, and hydrocarbon production.
  • Agriculture (25.7%): Agriculture remains a significant contributor, both in terms of employment and value addition, though its share in the GSVA has moderated compared to services.
    • Despite its lower share compared to Services, it employs over 60% of the population. Foodgrain production reached 283.98 lakh MT.
    • The agricultural sector continues to be the backbone for rural livelihoods, even as diversification into allied activities such as horticulture, animal husbandry and fisheries gains traction under state schemes.
• Key Pillars of "Viksit Rajasthan @2047":The Review highlights strategic focus areas like-
  • Energy Transition: Rajasthan leads India in Renewable Energy with an installed capacity exceeding 31,500 MW. The review emphasizes the "Green Hydrogen Policy" and the PM-KUSUM scheme.
  • Infrastructure: Focus on the 9 Greenfield Expressways and the completion of the Eastern Rajasthan Canal Project (ERCP) phases to solve water scarcity in 13 districts.
  • The Gig Economy: Rajasthan is the first state to implement the Platform Based Gig Workers (Registration and Welfare) Act, now covering 2% of the total workforce.
  • Agriculture 2.0: Emphasis on Natural Farming (1 lakh hectares) and the "Rajasthan Millets Promotion Mission" to capitalize on the state's status as the "Millet Bowl of India."
• Social Sector & Human Development:Rajasthan faces the dual challenge of job creation and enhancing the quality of employment opportunities, particularly for youth in urban and rural areas.
  • Labour: State schemes such as the Prime Minister Employment Generation Programme (PMEGP) have been instrumental in promoting self-employment and micro-enterprise development. 
  • Education: Expansion of Mahatma Gandhi English Medium Schools and the integration of vocational training in 1,500+ secondary schools.
  • Health: The Ayushman Bharat-MGRBY remains a flagship, providing health cover to 1.36 crore families with a focus on reducing "Out of Pocket Expenditure" (OOPE).
  • Women Empowerment: The Lakhpati Didi scheme has successfully integrated women into Self-Help Groups (SHGs), contributing to a rise in the Female Labour Force Participation Rate (LFPR) to 42%.