Recent development and issues in service sector of Rajasthan.

Information Technology and IT enabled Services

Software and services exports continued to remain on top of the IT industry’s revenue. The export-driven software sector saw major long-term projects come to Indian ICT leaders and Indian Companies bagging a larger and larger share of the global outsourced business.

The state of Rajasthan offers huge investment opportunities in IT sector especially ITeS. Rajasthan State Industrial Development and investment Corporation Limited (RIICO) has developed state of art IT parks at Jaipur, Kota, Udaipur and Jodhpur to attract investment in IT sector.RIICO is also considering developing such IT parks at Bhiwadi (Alwar). The infrastructure in terms of developed plots, continuous power High-Speed Data Com Facility through satellite earth station, road etc. are being made available to the IT industries in IT parks.

The major industries are Electrolux, Ericsson, GE, Samcor, Instrumentation, Rajasthan Electronics & Instruments (REIL), Genus overseas, Allied Electronic, Compucom, Cistems software, Lipi Data, Aksh Optifibre etc.

An investor friendly IT policy is already in place and provides lucrative incentives to IT industries.

The Major Issues faced by Service Sector in Rajasthan are as follows:-

  1. Our infrastructure is inadequate not only in the rural areas but also in the urban areas. For example, power shortage and traffic congestions are very common in Bangalore, the silicon city of India. These effect the quality of services provided.
  1. Though service sector has been the fastest growing sector in the last decade and has contributed more than 57% of the GDP, it provides less than 25 % of the total employment.
  1. India has great potential in the tourism sector. But there is a need to create proper setup for attracting tourists. Foreign tourists often get harassed and cheated in the hands of babus and officialdom, touts and conmen.
  1. Etiquettes and good behaviour are the hallmarks of the service sector. Indian service providers whether they are banks, hotels and restaurants, hospitals or public administration, they need to be trained thoroughly in public dealing, etiquettes, hospitality and manners.
  1. The airports, railways etc. in India are not clear and well organized. They need to be revamped and reorganized.
  1. Our consular division also is not proper. It takes many days to issue visas. This hampers the growth of the tourism sector. For this, we need to have a system which entails single window clearance.
  1. Service trade also faces a number of problems. These include lack of setup like export promotion councils (other than for computer software), various visible and invisible barriers to service trade like visa restrictions, sector specific restrictions and preferential market

Rajasthan Government has formulated the Rajasthan Industrial and Investment Promotion Policy in 2010. IT & ITeS are the thrust areas for development under the Rajasthan Industrial and Investment Promotion Policy – 2010. This policy is aimed at giving thrust to the IT/ITeS sectors including Electronic Hardware. The policy also aims to develop a Knowledge City catering to education, entertainment, health, recreation, research and information technology sectors.
Another important scheme to promote the BPO and KPO sectors in the State is the BPO & KPO Scheme – 2011. Under this scheme the State government is providing major incentives like a capital investment subsidy of up to 50 percent of capital cost subject to a maximum of Rs. 20 lakhs. It also has the provision to provide financial support to subsidise 50 percent of the training cost of each trainee. The IT and ITeS Policy, 2007 also provides various concessions and benefits to entrepreneurs in these sectors.