In order to achieve the target of 10 per cent annual growth by 2010, PHDCCI President P K Jain has suggested earmarking agri-processing, tourism, textiles, gems & jewellery, information technology, biotechnology and mineral-based industries as the thrust sectors for Rajasthan.
These sectors have been identified as having immense potential for revenue and employment generation.
Addressing a press conference at Jaipur recently, Jain said co-operative marketing of agricultural produce should be facilitated and at the same time professional marketing organisations be approached and new ones created for assisting the farmers.
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He suggested the formulation of a separate textile policy because this sector had a potential to provide employment to over 250,000 people.
Three integrated textile parks, including textile mills, process houses and ready-made garments units having assured power and water supply, should be set up at Bhiwadi, Bhilwara and any other location.
Tourism has a multiplier effect on the economy and, hence, the focus should be on identification of new markets for tourism and inviting new investment in tourism-related activities.
Citing the example of Singapore, Jain said aggressive marketing in identified foreign countries through mutual co-operation should be undertaken.
Planning for tourism development in Rajasthan should be integrated with similar efforts in the neighbouring states, particularly in Delhi, Uttar Pradesh, Haryana and Gujarat.
At present, inter-state collaboration in this sphere is only marginal and has to be made intensive, Jain observed.
The state should also introduce single uniform tax and permit a system with single-point collection of taxes at the origin for hassle-free tourist movement, Jain added.
Rajasthan accounts for about 13 per cent of degraded land in the country. A positive policy to bring this wasteland to the extent possible under plantation is desirable both for the optimum utilisation of resources and for creating large-scale employment.
Barren land should be given to the private sector on lease for 99 years for commercial farming by utilising modern water technology.
Micro enterprise development in villages can provide employment to rural youth, which will also curtail rural migration.
The state government should facilitate linking the micro enterprises with large marketing organisations in urban areas, co-operatives and international markets to assist in marketing products in the rural areas, Jain suggested.
He reiterated the need to aggressively market the state's strengths and potentials for domestic and foreign investment.
A case where determination has produced positive results is Manesar in Haryana which, till a few years back was languishing.
However, today it houses large multinationals as a result of the enterprise of the government, which focused and targeted specific countries for investment. Rajasthan, too, must take a lead and identify potential partner-countries.
While the state occupies 13th position among the 19 major states in the year 1998-99 in terms of per capita income, a more focused approach towards development is the key to faster growth of economy.
To accelerate economic growth and also to make Rajasthan a preferred destination for investment, Jain suggested that reforms, especially in the areas of governance and infrastructure.
The important objectives of the Budget, therefore, should be to considerably reduce the fiscal deficit because the non-Plan expenditure on salaries, pensions and interest payments is very high.
It should also focus on restructuring various departments of the government to reduce total manpower and to focus on introducing executive-oriented working and employ the tool of e-governance to facilitate speedier decisions.
On the issue of VAT, Jain said in order to realise the true potential of an ideal VAT regime, full input tax credit must be provided for capital goods and raw materials during the purchase year itself.
Specific reference to full input tax credit for capital goods must be made in the Rajasthan Act, which talks about raw materials only.
For delayed tax payments, leniency is advisable in fixing the penal rate of interest, especially in the initial stages of VAT implementation.
The penal rate should be specified to an acceptable 1.25 per cent per month. Similarly, to minimise harassment, the Act must avoid the provision relating to setting up check-posts inside the state.
Jain urged the Rajasthan government to expedite the process of inviting private investment in infrastructure projects.
After giving autonomy to the state-run Corporation, the private sector should now be invited to participate in power distribution in a phased manner, he said.
The state government may identify areas to be handed over to the private sector for the purpose. The inter-state issues such as a rail link between Rewari and Bhiwadi, a four-lane road link between Bhiwadi and the National Highway should also be addressed on a priority basis.
In order to upgrade the municipal services, the principle of "user must pay" should be considered by Rajasthan.
To begin with, at least 50 per cent cost should be recovered through this policy approach. In the long run, developmental projects on the basis of self-help can also be undertaken.
The private sector may be involved through specialist operating companies which have a high level of technical and professional skills.
Jain suggested that the state may offer management contracts in the area of water supply, sewage, solid waste disposal, and transport services.
Further, for development and maintenance of municipal areas, funds might be raised through bonds, he said.