Rajasthan’s New RIICO Land Policy Boosts Industries

Jaipur (Rajasthan) [India], November 22:
Rajasthan has taken a decisive step toward accelerating industrial development with the introduction of a new, investor-centric RIICO land policy. The reform, announced by the Rajasthan government and the Rajasthan State Industrial Development and Investment Corporation (RIICO), aims to make industrial land more accessible, affordable and conducive to long-term business expansion.

For years, high land costs and periodic hikes in reserve rates created obstacles for new and existing industries across the state. The challenge was particularly evident in established industrial corridors, where rising land prices often affected scalability and investment confidence. Responding to these concerns, RIICO has now implemented one of its most progressive reforms to date—a freeze on reserve rate increases, along with graded discounts to reduce acquisition costs for industrial plots.

A Graded, Investor-Friendly Pricing Structure

Under the new policy, industries will benefit from tiered discounts based on plot size:

• Up to 3,000 sq. m.: No change; existing reserve rate continues

• 3,000–10,000 sq. m.: 10% discount

• 10,000–40,000 sq. m.: 15% discount

• 40,000 sq. m.–2 lakh sq. m.: 20% discount

• Above 2 lakh sq. m.: 40% discount

This structure not only supports large industrial setups but also creates meaningful flexibility for MSMEs planning incremental expansion.

Industry Leaders Welcome the Reform

“This is a long-awaited structural reform that addresses a core issue faced by industries,” said Gaurav Rungta, industry expert and Managing Director of Man Structurals. “By stabilizing land prices and rolling out graded discounts, RIICO has paved the way for sustainable industrial expansion across Rajasthan.”

Rungta added that the policy aligns with the broader vision of transforming Rajasthan into a competitive, investor-friendly industrial hub, particularly at a time when businesses are seeking stable and predictable operational environments.

Strategic Timing Ahead of Pravasi Bharatiya Diwas

The timing of the policy announcement is significant, arriving just weeks before Pravasi Bharatiya Diwas in January—an event expected to draw global investors, NRI entrepreneurs and business delegations. Analysts believe the reform will strengthen Rajasthan’s investment narrative by providing:

• Predictable land pricing

• Lower entry barriers for new industries

• Stronger appeal for NRI investment

• Encouragement for cluster-based development beyond major cities

By providing long-term clarity on land costs, the state has positioned itself to attract a broader spectrum of investors, from manufacturing and logistics firms to emerging sectors like renewable energy, warehousing and export-oriented industries.

A Boost for MSMEs and Regional Industrialisation

The new RIICO policy is also expected to deliver substantial benefits to MSMEs, many of which previously struggled with limited expansion opportunities due to high land prices. With the introduction of graded discounts, smaller and mid-sized firms can now plan phased investment and secure land parcels at competitive rates.

Economists and industry observers note that the decision reflects a shift toward sustainable industrialisation over short-term revenue gains. The reform is likely to stimulate job creation, strengthen regional economies and reduce pressure on major industrial centres by encouraging growth in semi-urban and rural zones.

Strengthening Rajasthan’s Position as an Investment Destination

By prioritising affordable land access, stability and pro-growth policies, the Rajasthan government has sent a clear message about its long-term industrial strategy. The new RIICO land policy underscores the state’s intent to create a robust and predictable business environment—one capable of attracting both domestic and international investors.

With this initiative, Rajasthan is poised to reinforce its status as one of India’s most promising industrial destinations, ensuring that growth is not just accelerated but also inclusive and sustainable.

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PNN