Business Standard Smart Business Event in Association With RCCI & FIEO

The Business Standard Smart Business Event in association with Rajasthan Chamber Of Commerce & Industry (RCCI) and Federation of Indian Export Organizations (FIEO), held at Jaipur on 29 June, 2018, aimed at bringing the concerns and prospects of the local businesses to the fore. The panel, consisting of eminent figures from local business houses and the government, discussed in detail how the Rajasthan capital and the adjoining region has changed over the past decade and what lies ahead.

With influx of migrant population, from rural Rajasthan and elsewhere, has changed the city’s demographics – adding a cosmopolitan flavor to the once inward looking region. And as the city’s population swelled to over 50 million (that includes its registered 30.7 million inhabitants), local businesses dealing in gems and jewellery, flooring marbles and other sanitary hardware, new challenges have begun to emerge as well. While, the brunt of demonetization has healed, glitches related to goods and services tax (GST) continue to linger as exporters suffer from delayed tax returns. However, it is the mounting pressure that the city’s infrastructure is currently facing that is the biggest challenge for Jaipur to grow beyond its present form, panelists conferred. 

But there are green shoots as well. A bustling medical tourism industry and fast growing education sector are the silver linings.

According to K L Jain, secretary general, RCCI, religious tourism is a segment that needs to be harnessed. “With so many multi-specialty hospitals, Jaipur stands ahead of most other cities in terms of medical tourism as its cost remains low. Huge infrastructure development is the call of the day as Jaipur’s sewage system is overburdened”, he said.

“With redevelopment of the airport and new flight roots connecting Jaipur with South-East Asian cities, apart from close proximity to Delhi, Jaipur has huge business prospects. While, the road infrastructure is good, growing traffic will soon diminish Jaipur’s advantage. Thus, road plans need to be relooked”, said D S Bhandari, managing director, Aalishan Petro Products Ltd.

Jaipur-based charter accountant Pulkit Khandelwal pointed towards delay in tax returns received by exporters. “But ease of doing business is getting better, although slowly”.

Vikash Joshi, Dy. Commissioner, CGST & Central Excise, Jaipur Zone, said Over 80 percent of the GST-related cases are resolved in the region. And pendency of tax returns offered by CGST is zero. “But we need to increase the number of tax assesses. While, it is growing at nine percent a year, total assesses still remain at meagre 1.9 lakh”.

D S Rawat, DGM, SBI (LHO – Jaipur), MSME credit growth is at 25 percent and SBI is working on to further improve the rate. Transparency in the system, post-GST, has helped banking industry with more authentic data.