The Rajasthan government has officially granted industry status to the logistics sector, aiming to boost economic growth and resolve long-standing legal ambiguities. This move aligns state policies with national regulations while encouraging investment in logistics infrastructure.
Logistics Sector Gains Industry Recognition
Rajasthan’s new policy officially classifies logistics, including warehouses, logistics parks, dry ports, air freight stations, and cargo terminals, as part of the industrial sector. This designation ensures the sector enjoys benefits previously available only to traditional industries. With this decision, the government aims to eliminate regulatory conflicts that have long hindered logistics development, particularly in regions like Jaipur’s Vishwakarma Industrial Area.
Previously, state policies lacked uniformity, leading to disputes regarding land use and taxation for warehousing facilities. By granting industry status, the government removes these uncertainties, making it easier for businesses to establish and expand logistics operations.
New Policy Offers Financial Incentives
To attract investment, Rajasthan’s draft logistics policy introduces numerous financial and non-financial incentives that will benefit businesses developing logistics hubs across the state. The government provides complete exemptions on stamp duty, electricity duty, land taxes, and land conversion charges for up to ten years. Additionally, businesses can claim capital and interest subsidies for a specified period.
However, companies must meet specific criteria to qualify for these benefits. Projects must cover at least 50,000 square feet, feature a 60-foot-wide approach road, and require a minimum investment of ₹10 crore within three years. These conditions ensure that only substantial and well-planned logistics developments receive government incentives, fostering sustainable growth.
Developing Industrial Nodes and Logistics Hubs
Beyond financial incentives, Rajasthan’s government actively develops logistics hubs, industrial nodes, and a multi-modal logistics park to improve the ease of doing business. These initiatives aim to attract domestic and international investors by enhancing the state’s infrastructure and supply chain capabilities.
Recently, a team of senior government officials, led by Principal Secretary of Industries Ajitabh Sharma and RIICO Managing Director Inderjeet Singh, conducted site inspections near Jaipur. Their visit covered potential locations at Manda, Phulera (near the Western Dedicated Freight Corridor), and Bichoon industrial areas. During these assessments, officials evaluated land suitability for large-scale logistics infrastructure projects.
Boosting Economic Growth and Investment
By granting industry status to logistics, Rajasthan creates a more favorable business environment while strengthening its position as a logistics hub in North India. Improved regulatory clarity, combined with financial incentives, will attract investors and accelerate the state’s industrial development. Furthermore, the establishment of new logistics parks and multi-modal facilities will enhance supply chain efficiency, benefiting businesses across various sectors.
With these strategic measures, Rajasthan positions itself as a key player in India’s logistics landscape. By facilitating infrastructure growth and ensuring policy stability, the government paves the way for increased economic activity, employment opportunities, and long-term industrial success.
