IT & ITeS
Rajasthan has made considerable investment in communication infrastructure, research & development facilities for training and skill enhancement. Highly competitive as a destination in IT/ITeS, the following factors give the State an edge over others:
- Availability of vast and cost competitive talent pool
- A more attractive Tier-2 location compared to traditional Tier-1 locations
- Has India's largest Special Economic Zone (SEZ) for IT/ITeS companies in Pvt. sector
- A highly attractive and competitive incentive package
- Well-developed internet connectivity network
Institutions for feeding the sector
Rajasthan has an abundant talent pool with over 1,300 Technical educational institutions with an annual intake capacity of over 2.2 lakh students. The State accounts for highest number of India's working finance professionals.
The State Government has also established the Rajasthan Knowledge Corporation Limited to promote IT literacy and IT services.
An Attractive Tier-2 Location
The State offers lower manpower costs, lower staff attrition rates, lower land and office space costs and access to large pool of relatively untapped educated professionals.
Costs for IT professionals in Rajasthan such as software analysts and project coordinators are approximately lower as compared to NCR.
Available Infrastructure
Mahindra Group and Rajasthan State Industrial Development and Investment Corporation (RIICO) have jointly developed an integrated business location in Jaipur - the Mahindra World City, an SEZ providing world class platform to the investors in this sector. The SEZ has a dedicated IT/ITeS zone spread over 750 acres which provides seamless telecom and broadband connectivity, quality satellite linkage and a range of voice and data solutions.
Mahindra World City at Jaipur is the biggest IT SEZ in the country. It already houses multinationals like Deutsche Bank, Genpact, Infosys, Metlife, Nucleus Software, EXL and Systweak Software.
In addition to this, major cities like Jodhpur, Udaipur and Kota are also being developed as suitable centers for the IT/ITeS sector. These cities have IT/ITeS Parks ranging from 5-10 acres.
Financial & other incentives offered by the State include:
- Training Incentives: INR 2,000 per candidate to training centers providing training on communication/soft skills & whose candidates find placement in IT &ITeS Companies
- Rebate for patent: Up to INR 50,000 GoR would reimburse the ITC patent filing costs of individuals and non-profit organization with the condition that the patent right stays with the State
- Mega project incentive: INR 10,000 per employee, projects that create employment of more than 500 people in the case of IT industry or 1000 people in ITeS Industry
- Simplified labour laws (for example, women are allowed to work on night shifts)
- Venture Capital support from Rajasthan Venture Capital Fund (RVCF)
- Capital Investment Subsidy of 50% of capital cost (up to INR 2 million) to BPO/KPO centers for developing Training Infrastructure Facilities
- Financial support of 50% training cost up to INR 10,000 per trainee in case of BPO centre and INR 12,500 per trainee in case of KPO centre
In addition to the above, the Rajasthan Investment Promotion Scheme 2014 also offers the following exemptions:
- Reimbursement of 50% of amount of VAT paid on purchase of plant and machinery or equipment for a period up to seven years
- Exemption from payment of 50% of Entertainment Tax for seven years
- Exemption from payment of 50% of Electricity Duty for seven years
- Exemption from payment of 50% of Land Tax for seven years
- Exemption from payment of 50% of Stamp Duty on purchase or lease of land and construction or improvement on such land
- Exemption from payment of 50% of conversion charges
- Additional 10% reimbursement of VAT/CST paid, for Women/ PWD/SC/ST
- Provision of Customized Package for Service enterprises having investment more than INR 200 crore or providing employment to more than 500 persons