Rajasthanindustries.rajasthan.gov.in/content/dam/industries/pdf/... · · 2018-01-20literacy and...
Transcript of Rajasthanindustries.rajasthan.gov.in/content/dam/industries/pdf/... · · 2018-01-20literacy and...
Where excellence means value for money
Where performance means delivery
Where success means 22% annual IT/ITeS employment growth
Where Mahindra World City offers India's largest IT SEZ
Where Genpact, Infosys and Deutsche Bank enjoy success
Rajasthan India's emerging IT/ITeS hub
Rajasthan
Delhi
INDIA
Mumbai
Rajasthanat a Glance
Area 342,239 sq km
Largest State in India
Location North-western India; shares domestic borders with Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat
Population 66.3 million (estimate 2011)
Capital Jaipur
Time Zone GMT + 5 hours, 30 minutes
Districts 33
Share of India's GDP 4.3%
Rajasthan is emerging as one of the best locations in India to
invest in the IT/ITeS sector. The State has made considerable
investment in communication infrastructure, research &
development facilities for training and skill enhancement.
RajasthanIndia’s emerging IT/ITeS Hub
CompetitiveAdvantage for IT/ITeS
Rajasthan has an abundant talent pool with over 1,300 higher level
educational institutions with an annual intake capacity of over
200,000 students. The number of technical colleges has been
growing at an annual rate of 20% over the last two years with the
intake capacity growing at 40%.
Availability of vast and cost competitive talent pool
Proximity to an emerging cluster of major sector companies
A more attractive Tier 2 location compared to traditional Tier 1 locations
Has India’s largest Special Economic Zone (SEZ) for IT/ITeS companies
A highly attractive and competitive incentive package
Offers good & comfortable living
A Government highly welcoming & supportive of private sector investment
Abundant& Cost CompetitiveManpower
Source: Directorate of Technical Education, Govt. of Rajasthan and STPI, Jaipur
Total No. of Institutes: 1,309 Total Intake Capacity: 208,850
EngineeringPolytechnic
Intake Capacity
No. of Institutes
MBA ITI (Industrial Training Institute)
MCA
38
2,440 10,343 43,970 50,374 101,723
136 164 122 849
Currently there are 122 engineering, 38 MCA and 136 MBA
institutions in the State.
96 software exporting units currently operational
Software exports were recorded at Rs4.7 billion in 2010-11
In addition, the State has an annual intake of over 4,00,000 general degree college
students and accounts for highest number of India’s working finance professionals
in India.
The State is home to several prestigious institutes including:
Indian Institute of Technology, Jodhpur
Indian Institute of Management, Udaipur
Birla Institute of Technology and Sciences, Pilani
Banasthali Vidyapith, Banasthali NIIT University, Alwar
LNM Institute of Information Technology, Jaipur
Malaviya National Institute of Technology, Jaipur
Rajasthan Technical University, Kota
Modi Institute of Technology, Kota
Mayo College, Ajmer
Further, the Government of Rajasthan, along with a range of knowledge partners,
has established the Rajasthan Knowledge Corporation Limited (RKCL) to promote IT
literacy and IT services within the State. RKCL has established almost 1,000
authorized training/learning centers delivering basic IT courses together with
courses on banking and finance.
Compared to its key competitor States (Andhra Pradesh, Maharashtra, Tamil Nadu,
West Bengal, Karnataka, Gujarat and Punjab), Rajasthan has the lowest labour costs.
Costs for IT professionals in Rajasthan such as software analysts and project
coordinators are approximately 15%-20% lower compared to NCR. Below are the
charts depicting Rajasthan’s competitive position on labour cost:
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Cost of Software Analyst in INR per month (3-5 yrs. Exp)Source: Ministry of Statistics and Programme Implementation, Govt. of India
Rajas
than
Mah
aras
htra
Hary
ana
Gujar
at
Tam
il Nad
u
Punj
ab
Karn
atak
a
(38000) (37000) (34000) (32700) (30500) (25925)(28300)
Wes
t Ben
gal
Karn
atak
a AP
Gujar
at
Mah
aras
htra
Tam
il Nad
u
Hary
ana
Punj
ab
Rajas
than
(22700)(28500) (27500) (27500) (26400) (25100) (24200) (20570)(31800)
Cost of Project Coordinator in INR per month (3-5 yrs. Exp)Source: Ministry of Statistics and Programme Implementation, Govt. of India
IT products and services represent an excellent opportunity to
invest in Rajasthan. Rajasthan’s IT exports are growing fast,
showing a compound annual growth rate of 25% over the past five
years to reach a level of INR 4.7 billion.
The State has 126 STPI registered units and is home to several major
IT players including MNCs such as Genpact, Infosys, Deutsche Bank
and Wipro. In addition, the State has a number of fast-growing
home grown companies such as Data Infosys, E Connnect and
Metacube.
Proximity to anEmerging IT/ITeS Cluster
IT Industry in Rajasthan: Rapid Growth in the last 5 yearsSource: STPI (Software Technology Parks of India), Jaipur, Govt. of Rajasthan
S.D. ShibulalCEO, Infosys
“Cities of Rajasthan offer a good pool of qualified
young manpower and low operating costs, an
excellent advantage-mix for an IT and ITeS services
company. Infosys is happy to have located in Jaipur
and plans to further strengthen its presence here.”
2006-07 2007-08 2008-09 2009-10 2010-11
(2.0)
(2.8)
(3.4)
(4.7)(4.2)
Rajasthan's IT Exports (INR billion)
About 80% of these companies are in IT (mainly software
development and some in hardware manufacturing), with the
remaining 20% in ITeS (12% in Business Process Outsourcing (BPO)
and 8% in medical transcription). The top five companies account
for almost 75% of the State’s IT exports.
Area of Operation (No. of Companies)Source: STPI (Software Technology Parks of India), Jaipur, Govt. of Rajasthan; Industry Feedback
Software Development
BPO
Medical Transcription
Hardware
3%8%
12%
77%
The sector directly employs about 15,000 people in total and this is
expected to grow to approx 30,000 people by 2015.
Estimated Employment in IT Industry
“Genpact began operations in Jaipur in 2003 and today
nearly 6000 people work for us. It is our third largest
operating center and we provide banking and financial
services to clients in India and around the world. The
support given by the Government of Rajasthan to
Genpact throughout has been terrific - starting from
first day of setup till today. With sustained investment in
infrastructure like roads, power and transport the
business environment is improving rapidly and we are
waiting for the implementation of special schemes to
upgrade the skills of young people to make them both
employable and industry ready."
Mr. Diwakar SinghalSenior VP, Genpact
2008-09
(6000)
(9000)
2009-10
2010-11
(15000)
2014-15
(30000)
2007-08
(5000)
The Indian IT industry is primarily concentrated in seven major Tier 1 cities
including Delhi, Mumbai, Bangalore, Chennai and Hyderabad. Most major IT
investors initiated their Indian operations in one of these Tier 1 locations. However,
in recent years a growing trend has emerged which has seen a move to Tier 2 and
Tier 3 cities offering lower manpower costs, lower staff attrition rates, lower land
and office space costs and access to large pool of relatively untapped educated
professionals.
Within the next decade, employment in Tier 2 cities, including Jaipur, and Tier 3
cities is expected to grow much faster than any Tier 1 location. By 2018 about 40%
of employment in the sector will be in Tier 2 and Tier 3 areas compared to less than
10% today.
Rajasthan’s trend will be even stronger as the highest number of India’s working
finance professionals such as CAs and ISWAs are originally from Rajasthan and
many will return to the State if suitable jobs are available.
A More AttractiveTier 2 Location
India's IT Sector Employment Distribution in Tier 1and Tier 2/3 locations ('000)
Source: NASSCOM and Hewitt Analysis, Govt. of India
Mr Anurag Shukla, Director and Site HeadDBOI Global Services, Jaipur
''Jaipur plays a key role in our India strategy. As we considered
alternatives for our third service centre in India, Jaipur was a
natural choice as it offered us robust infrastructure and access
to a vast talent pool. The Service Centre we established in
Jaipur services our global business products and cross
business functions. The success of this centre stands testimony
to the value proposition that Jaipur and Rajasthan as a state
has to offer with a favorable geo-political environment that
fosters entrepreneurship and innovation. From inception, we
have received tremendous support from the entire state
government and the local community at large.''
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3230
(18x)
1821
4845
(-2.5x)
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1000
2000
3000
4000
5000
2008 2018
Tier 1 locations Tier 2/3 locations
The need to provide investors in Rajasthan with a world class
platform to enable companies to set up and operate in a
business-friendly, hassle-free environment led Mahindra Group
and Rajasthan Industrial and Investment Corporation (RIICO) to
jointly develop an integrated business location close to Jaipur
airport – the Mahindra World City.
Mahindra World City, Jaipur is India’s largest Special Economic
Zone (SEZ) with a total area of 3,000 acres. It has a dedicated
IT/ITeS zone spread over 750 acres in the SEZ. Mahindra World
City is a well planned business city designed on a work-live-learn-
play concept. It is divided into zones for different businesses. The
SEZ is designed for companies catering to global markets through
exports. A Domestic Tariff Area (DTA) is also designed in the zone
for companies catering to the Indian market.
India’s LargestSEZ for IT/ITeS
The 750-acre SEZ dedicated to IT/ITes provides modern
working spaces with plug-n-play infrastructure, seamless
telecom and broadband connectivity, quality satellite
linkage and a range of voice and data solutions. Mahindra
World City offers investors’ highly flexible options for the
development of land and office space which can be
purpose-built to match individual investor’s needs.
Alternatively, investors may avail of the existing office
space which can be modified to suit the investor, which can
be either rented or sold to the investor.
Major companies are already successfully operating in the IT/ITeS SEZ including
Infosys, Deutsche Bank and EXL Service. These companies have currently employed
close to 2,100 people and this is expected to grow many times over the next five
years.
Below are the details of major companies that have started operations in the IT/ITeS
Zone:
RIICO IT Park, JodhpurSTPI centreIncubation Centre
RIICO IT Park, SitapuraMahindra World City SEZRIICO Park, RamchandrapuraSTPI centreRIICO Incubation Centre
RIICO IT Park, Kota
RIICO IT Park, Udaipur
In addition to Jaipur, other major cities in Rajasthan like Jodhpur, Udaipur and Kota
are also being developed as suitable centers for the IT/ITeS sector. These latter cities
have smaller IT/ITeS Parks ranging from 5-10 acres and all have high speed data
communications infrastructure from a number of telecommunication suppliers.
Company Name
Infosys BPO 200 acres IT Services 900
Area Nature of Business No. of employees
Deutsche Bank 1,76,544 sq ft Backend services 1200
EXL Service 38,655 sq ft UnderDevelopment/
Undisclosed
IT Services
Source: Mahindra World City, Jaipur
IT growth cluster acrossRajasthan
IT SEZs being set up in the State
(i) IT SEZ at Jaipur by Mahindra World City
(ii) IT SEZ at Jaipur by Vatika SEZ Developer.
(iii) IT SEZ at Jaipur by Genpact Infrastructure
Pvt. Ltd.
(iv) IT SEZ at Khushkheda-Bhiwadi (Alwar) by
Somani Worsted Ltd.
(v) IT SEZ at Kaparda (Jodhpur) by Mansarovar
Industrial Development Corporation (MIDC)
Rajasthan offers a generous and competitive range of subsidies and exemptions from taxes for investors in Rajasthan under Rajasthan Investment Promotion Scheme 2010. An investor friendly IT and ITeS Policy 2007 is already in place which provides lucrative incentives to IT/ITeS industries.
Rajasthan’s incentives include:
Land rebate up to 60% depending on the type and size of investment
50% exemption from stamp duty on registration of land
50% exemption on electricity duty for 7 years. The captive power unit setup by eligible units will be exempted from payment of Electricity Duty
50% exemption on conversion charge payable for change of land use
Training Incentives: Rs2000 per candidate to training centers provide training on communication/soft skills & whose candidates find placement in IT &ITES Companies
Rebate for patent: Up to Rs50000 GOR would reimburse the ITC patent filing costs of individuals and non-profit organization with the condition that the patent right stays with the state
Mega project incentive: Rs.10000 per employee, projects that create employment of more than 500 people in the case of IT industry or
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Attractive Incentives1000 people in ITES Industry.
A subsidy up to Rs. 25 Lacs at the rate of Rs. 10,000 per employee would be given to the first five IT/ITeS companies investing in the State and directly employing more than 50 employees in IT or 100 employees in ITeS sector.
Floor Area ratio allowed upto 2.5
Simplified labour laws (for example women are allowed to work on night shifts)
Customized package for strategic or important projects
Venture Capital support from Rajasthan Venture Capital Fund (RVCF)
Investment Subsidy: 30% of taxes which have become due and have been deposited by the enterprises for 7 years (10 years for MSME)
Employment Generation Subsidy: 20% of taxes which have become due and have been deposit by the enterprises for 7 years (10 years for MSME) Rs15000 per employee per year for completed service. Rs18000 in case of women/ SC/ST/Women/ PwD category
Special package for Micro, Small & Medium Enterprise (MSMEs)
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To view the entire policy please log on to www.investrajasthan.com
http://www.rajasthan.gov.in/rajgovresources/actnpolicies/it_policy.pdf
Rajasthan offers a good and comfortable quality of life to its residents.
The State has excellent medical & health facilities and is home to several state-of-
the-art hospitals such as Fortis, Narayan Hrudalaya, Santokba Durlabhji Memorial
Hospital and S.K Soni Hospital
The State has a large number of renowned educational institutions such as IIM, IIT,
AIIMS, BITS Pilani, Raffles University, FDDI, Mayo College, Amity University and many
more.
Rajasthan has 2 out of 3 hotels in India that have been ranked amongst 15 best
hotels in the world and top 5 in Asia by the readers of Travel & Leisure, USA in 2011.
The State has almost all major hotel brands including Oberoi, Taj, ITC, and Marriott.
Rajasthan has a very peaceful environment with one of the lowest crime rates in the
country
Jaipur, the State capital is a modern city, with low congestion and pollution with all
conveniences and a great night life like that of a metropolis including restaurants,
cinemas, malls and supermarkets.
Good Quality of Life
Generating higher levels of economic growth and prosperity through increased private
sector investment is a top priority for the Government of the State of Rajasthan.
The Bureau of Investment Promotion (BIP) is the primary State Institution supporting
inward private sector investment in Rajasthan. BIP is committed to providing a
professional service and a timely response to current and prospective investors in the
State. The Agency assists investors to objectively evaluate Rajasthan as a location for
their investment projects. It works with State and Local Governmental authorities to
expedite approvals, where necessary, to enable a fast start-up of operations.
Going by the phrase ‘time is money’, the Government has introduced a Single Window
system that serves as a single point interface between investors and various
government departments to ensure faster decision-making on applications for licenses
and permits.
A Welcoming &Supportive Government
Time bound approvals and clearances
Online submission of application
Mandatory to submit application only through this
system to render transparency to the system
BIP is the nodal agency for this system
Single WindowSystem
BIP’s Messageto Investors
E-governancean area of opportunity E-Governance is an area in which Rajasthan is investing and
the Government has launched several projects to improve
efficiencies and provide basic services to people online. As
part of this effort, the State has mandated all Departments
of State to earmark 3% of their overall budgets for IT
implementation. E-governance projects within the State
cover a diverse range of areas including Single Window
System, e-procurement, VAT and Commercial Taxes, Disaster
Management Information System, Litigation Information
Tracking & Evaluation System and Land Record
Computerization.
As the IPA for Rajasthan, the Bureau of Investment Promotion (BIP)
offers you a dedicated professional support team for your IT / ITeS
investment.
We are a One Stop Shop for all your investment needs, from
project inception through completion to investment aftercare.
Guided by the highest standards of business ethics, we promise to
make a timely and effective response to your enquiries and to
provide information on all aspects of investment in Rajasthan.
We look forward to meeting with you soon and we warmly invite
you to visit Rajasthan to see for yourself the exciting opportunities
available.
Please contact us using the details given on the back cover.
Contact Officers
Dr. Purushottam Agarwal Commissioner, BIP
Ms. Kavita RajoraIT/ITeS Sector Incharge, BIP
Bureau of Investment PromotionUdyog Bhawan, Tilak Marg, Jaipur 302005Rajasthan, IndiaTel. +91-141-2227274, 2227812, 2227713Fax +91-141-2227506www.investrajasthan.comE-mail: [email protected]
Knowledge Partners