Cabinet Approves Landmark Policies
The Rajasthan Cabinet on January 21, 2026, approved two major policy frameworks aimed at boosting high-tech manufacturing and innovation in the state.
These include:
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Rajasthan Aerospace and Defence Policy
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Rajasthan Semiconductor Policy–2025
Both policies are designed to attract large-scale investments, strengthen industrial capabilities, and create a robust ecosystem for innovation.
Aerospace and Defence Policy: Promoting Technology and MSMEs
Scope and Investment Categories
According to Industries and Commerce Minister Rajyavardhan Rathore, the aerospace and defence policy will support defence and space technologies while promoting MSMEs, startups, and innovation-driven businesses.
The policy encourages investments across the entire value chain, including component manufacturing, maintenance, repair, and overhaul (MRO) facilities.
For better clarity, projects are categorized based on capital investment:
Manufacturing Projects:
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Large: ₹50–300 crore
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Mega: ₹300–1,000 crore
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Ultra-Mega: Above ₹1,000 crore
Services Projects:
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Large: ₹25–100 crore
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Mega: ₹100–250 crore
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Ultra-Mega: Above ₹250 crore
Eligible enterprises can choose between investment-linked incentives—such as reimbursement of up to 75% of state taxes for seven years—or turnover-linked incentives for up to 10 years.
Additional Support Measures
The policy also introduces:
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Employment boosters to encourage job creation
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Sunrise boosters for early mega and ultra-mega units
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Anchor and thrust incentives for strategic projects
Furthermore, mega units acquiring land through the Rajasthan State Industrial Development and Investment Corporation (RIICO) will benefit from flexible land payment terms and lease rental subsidies for office space.
Rajasthan Semiconductor Policy–2025: Driving Innovation in Electronics
Focus on Semiconductor Ecosystem
The Rajasthan Semiconductor Policy–2025 aims to position the state as a key player in the semiconductor sector.
Key features include:
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Attracting anchor investments
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Developing dedicated semiconductor parks
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Expanding the fabless design ecosystem
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Strengthening research and development, technology transfer, and skill development
Projects approved under the India Semiconductor Mission are eligible for multiple incentives, including:
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100% electricity duty exemption for seven years
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Stamp duty and land conversion concessions
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Interest subsidies on term loans
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Capital support linked to central government incentives
Rajasthan’s Vision for High-Tech Manufacturing
Attracting Investment and Creating Jobs
With these policies, Rajasthan is set to attract high-tech investments, including aerospace, defence, and semiconductor industries. The state aims to enhance industrial capabilities, promote startups, and foster innovation, making it a preferred destination for technology-driven businesses in India.
