Rajasthan grants industry status to logistics sector to boost investment and infrastructure

This decision, approved by the state cabinet on Tuesday 4 Feb ’25 is expected to create an investor-friendly regulatory environment, streamline operations, and improve ease of doing business in the state. The newly approved policy focuses on developing robust logistics infrastructure, enhancing multi-modal connectivity, and attracting private investment. These efforts are geared towards strengthening the state’s logistical capabilities and facilitating better access to local and regional markets.

Ajitabh Sharma, Principal Secretary (Industries), highlighted the sector’s pivotal role in economic and social development, as well as environmental sustainability. “The policy will drive economic growth and improve logistical efficiencies. Given the sector’s anchoring role, the government has decided to extend industry status to the sector,” he stated.

To further this initiative, the Rajasthan State Industrial Development and Investment Corporation (RIICO) will allocate land specifically for logistics operations in its new industrial areas.

Additionally, the industry department is considering introducing a scheme to regularise existing warehouses, thereby bringing them into the formal sector and boosting efficiency. Strategically located, Rajasthan provides access to 40 per cent of India’s market and serves as a key infrastructural linkage between the northern and western regions.

The policy envisions leveraging technology to optimise logistics routes, reduce inefficiencies, and minimise environmental impact while ensuring seamless movement of goods. Key focus areas include enhancing warehousing, cold storage, dry ports, inland container depots, air freight stations, trucker lay-bys, and logistics parks.

To attract private investment, the government has outlined a series of incentives under the Rajasthan Investment Promotion Scheme. These include exemptions from electricity and stamp duty, interest subsidies, and access to land at concessional rates. Additionally, the policy encourages development through the Public-Private Partnership (PPP) model to expand existing logistics capacities and create new facilities.

By prioritising technology, innovation, and best practices, the Rajasthan government aims to transform the state into a leading logistics hub, ensuring a more efficient, reliable, and sustainable logistics ecosystem.