Additional District Judge Prahlad Rai Sharma after hearing the prosecution and defence witnesses, said the prosecution failed to prove the case against him beyond reasonable doubts.
The former minister, who was arrested by the CBI in 2013, was brought to the court from jail under heavy security cover in the morning, but the judgement was pronounced in the afternoon.
Hearing both the sides, the court had reserved its decision.
"Today, the court acquitted Nagar from rape charges," Nagar's counsel Purushottam Banwada told PTI.
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Later, the woman lodged a complaint at Sodala police station alleging that Nagar had raped her and threatened of dire consequences.
She approached the court, after the local police allegedly tried hushing up the matter.
Nagar was expelled from the cabinet.
The CBI investigated the case and arrested Nagar on October, 25, 2013.
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Later, Nagar was released from the Jaipur central jail following the court's order.