RajasthanIndia's emerging IT/ITeS hub

Investment Brochure

Where excellence means value for money

Where performance means delivery

Where success means 22% annual IT/ITeS employment growth

Where Mahindra World City offers India's largest IT SEZ

Where Genpact, Infosys and Deutsche Bank enjoy success

Rajasthan India's emerging IT/ITeS hub

Rajasthan

Delhi

INDIA

Mumbai

Rajasthanat a Glance

Area 342,239 sq km

Largest State in India

Location North-western India; shares domestic borders with Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat

Population 66.3 million (estimate 2011)

Capital Jaipur

Time Zone GMT + 5 hours, 30 minutes

Districts 33

Share of India's GDP 4.3%

Rajasthan is emerging as one of the best locations in India to

invest in the IT/ITeS sector. The State has made considerable

investment in communication infrastructure, research &

development facilities for training and skill enhancement.

RajasthanIndia’s emerging IT/ITeS Hub

CompetitiveAdvantage for IT/ITeS

Rajasthan has an abundant talent pool with over 1,300 higher level

educational institutions with an annual intake capacity of over

200,000 students. The number of technical colleges has been

growing at an annual rate of 20% over the last two years with the

intake capacity growing at 40%.

Availability of vast and cost competitive talent pool

Proximity to an emerging cluster of major sector companies

A more attractive Tier 2 location compared to traditional Tier 1 locations

Has India’s largest Special Economic Zone (SEZ) for IT/ITeS companies

A highly attractive and competitive incentive package

Offers good & comfortable living

A Government highly welcoming & supportive of private sector investment

Abundant& Cost CompetitiveManpower

Source: Directorate of Technical Education, Govt. of Rajasthan and STPI, Jaipur

Total No. of Institutes: 1,309 Total Intake Capacity: 208,850

EngineeringPolytechnic

Intake Capacity

No. of Institutes

MBA ITI (Industrial Training Institute)

MCA

38

2,440 10,343 43,970 50,374 101,723

136 164 122 849

Currently there are 122 engineering, 38 MCA and 136 MBA

institutions in the State.

96 software exporting units currently operational

Software exports were recorded at Rs4.7 billion in 2010-11

In addition, the State has an annual intake of over 4,00,000 general degree college

students and accounts for highest number of India’s working finance professionals

in India.

The State is home to several prestigious institutes including:

Indian Institute of Technology, Jodhpur

Indian Institute of Management, Udaipur

Birla Institute of Technology and Sciences, Pilani

Banasthali Vidyapith, Banasthali NIIT University, Alwar

LNM Institute of Information Technology, Jaipur

Malaviya National Institute of Technology, Jaipur

Rajasthan Technical University, Kota

Modi Institute of Technology, Kota

Mayo College, Ajmer

Further, the Government of Rajasthan, along with a range of knowledge partners,

has established the Rajasthan Knowledge Corporation Limited (RKCL) to promote IT

literacy and IT services within the State. RKCL has established almost 1,000

authorized training/learning centers delivering basic IT courses together with

courses on banking and finance.

Compared to its key competitor States (Andhra Pradesh, Maharashtra, Tamil Nadu,

West Bengal, Karnataka, Gujarat and Punjab), Rajasthan has the lowest labour costs.

Costs for IT professionals in Rajasthan such as software analysts and project

coordinators are approximately 15%-20% lower compared to NCR. Below are the

charts depicting Rajasthan’s competitive position on labour cost:

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Cost of Software Analyst in INR per month (3-5 yrs. Exp)Source: Ministry of Statistics and Programme Implementation, Govt. of India

Rajas

than

Mah

aras

htra

Hary

ana

Gujar

at

Tam

il Nad

u

Punj

ab

Karn

atak

a

(38000) (37000) (34000) (32700) (30500) (25925)(28300)

Wes

t Ben

gal

Karn

atak

a AP

Gujar

at

Mah

aras

htra

Tam

il Nad

u

Hary

ana

Punj

ab

Rajas

than

(22700)(28500) (27500) (27500) (26400) (25100) (24200) (20570)(31800)

Cost of Project Coordinator in INR per month (3-5 yrs. Exp)Source: Ministry of Statistics and Programme Implementation, Govt. of India

IT products and services represent an excellent opportunity to

invest in Rajasthan. Rajasthan’s IT exports are growing fast,

showing a compound annual growth rate of 25% over the past five

years to reach a level of INR 4.7 billion.

The State has 126 STPI registered units and is home to several major

IT players including MNCs such as Genpact, Infosys, Deutsche Bank

and Wipro. In addition, the State has a number of fast-growing

home grown companies such as Data Infosys, E Connnect and

Metacube.

Proximity to anEmerging IT/ITeS Cluster

IT Industry in Rajasthan: Rapid Growth in the last 5 yearsSource: STPI (Software Technology Parks of India), Jaipur, Govt. of Rajasthan

S.D. ShibulalCEO, Infosys

“Cities of Rajasthan offer a good pool of qualified

young manpower and low operating costs, an

excellent advantage-mix for an IT and ITeS services

company. Infosys is happy to have located in Jaipur

and plans to further strengthen its presence here.”

2006-07 2007-08 2008-09 2009-10 2010-11

(2.0)

(2.8)

(3.4)

(4.7)(4.2)

Rajasthan's IT Exports (INR billion)

About 80% of these companies are in IT (mainly software

development and some in hardware manufacturing), with the

remaining 20% in ITeS (12% in Business Process Outsourcing (BPO)

and 8% in medical transcription). The top five companies account

for almost 75% of the State’s IT exports.

Area of Operation (No. of Companies)Source: STPI (Software Technology Parks of India), Jaipur, Govt. of Rajasthan; Industry Feedback

Software Development

BPO

Medical Transcription

Hardware

3%8%

12%

77%

The sector directly employs about 15,000 people in total and this is

expected to grow to approx 30,000 people by 2015.

Estimated Employment in IT Industry

“Genpact began operations in Jaipur in 2003 and today

nearly 6000 people work for us. It is our third largest

operating center and we provide banking and financial

services to clients in India and around the world. The

support given by the Government of Rajasthan to

Genpact throughout has been terrific - starting from

first day of setup till today. With sustained investment in

infrastructure like roads, power and transport the

business environment is improving rapidly and we are

waiting for the implementation of special schemes to

upgrade the skills of young people to make them both

employable and industry ready."

Mr. Diwakar SinghalSenior VP, Genpact

2008-09

(6000)

(9000)

2009-10

2010-11

(15000)

2014-15

(30000)

2007-08

(5000)

The Indian IT industry is primarily concentrated in seven major Tier 1 cities

including Delhi, Mumbai, Bangalore, Chennai and Hyderabad. Most major IT

investors initiated their Indian operations in one of these Tier 1 locations. However,

in recent years a growing trend has emerged which has seen a move to Tier 2 and

Tier 3 cities offering lower manpower costs, lower staff attrition rates, lower land

and office space costs and access to large pool of relatively untapped educated

professionals.

Within the next decade, employment in Tier 2 cities, including Jaipur, and Tier 3

cities is expected to grow much faster than any Tier 1 location. By 2018 about 40%

of employment in the sector will be in Tier 2 and Tier 3 areas compared to less than

10% today.

Rajasthan’s trend will be even stronger as the highest number of India’s working

finance professionals such as CAs and ISWAs are originally from Rajasthan and

many will return to the State if suitable jobs are available.

A More AttractiveTier 2 Location

India's IT Sector Employment Distribution in Tier 1and Tier 2/3 locations ('000)

Source: NASSCOM and Hewitt Analysis, Govt. of India

Mr Anurag Shukla, Director and Site HeadDBOI Global Services, Jaipur

''Jaipur plays a key role in our India strategy. As we considered

alternatives for our third service centre in India, Jaipur was a

natural choice as it offered us robust infrastructure and access

to a vast talent pool. The Service Centre we established in

Jaipur services our global business products and cross

business functions. The success of this centre stands testimony

to the value proposition that Jaipur and Rajasthan as a state

has to offer with a favorable geo-political environment that

fosters entrepreneurship and innovation. From inception, we

have received tremendous support from the entire state

government and the local community at large.''

175

3230

(18x)

1821

4845

(-2.5x)

0

1000

2000

3000

4000

5000

2008 2018

Tier 1 locations Tier 2/3 locations

The need to provide investors in Rajasthan with a world class

platform to enable companies to set up and operate in a

business-friendly, hassle-free environment led Mahindra Group

and Rajasthan Industrial and Investment Corporation (RIICO) to

jointly develop an integrated business location close to Jaipur

airport – the Mahindra World City.

Mahindra World City, Jaipur is India’s largest Special Economic

Zone (SEZ) with a total area of 3,000 acres. It has a dedicated

IT/ITeS zone spread over 750 acres in the SEZ. Mahindra World

City is a well planned business city designed on a work-live-learn-

play concept. It is divided into zones for different businesses. The

SEZ is designed for companies catering to global markets through

exports. A Domestic Tariff Area (DTA) is also designed in the zone

for companies catering to the Indian market.

India’s LargestSEZ for IT/ITeS

The 750-acre SEZ dedicated to IT/ITes provides modern

working spaces with plug-n-play infrastructure, seamless

telecom and broadband connectivity, quality satellite

linkage and a range of voice and data solutions. Mahindra

World City offers investors’ highly flexible options for the

development of land and office space which can be

purpose-built to match individual investor’s needs.

Alternatively, investors may avail of the existing office

space which can be modified to suit the investor, which can

be either rented or sold to the investor.

Major companies are already successfully operating in the IT/ITeS SEZ including

Infosys, Deutsche Bank and EXL Service. These companies have currently employed

close to 2,100 people and this is expected to grow many times over the next five

years.

Below are the details of major companies that have started operations in the IT/ITeS

Zone:

RIICO IT Park, JodhpurSTPI centreIncubation Centre

RIICO IT Park, SitapuraMahindra World City SEZRIICO Park, RamchandrapuraSTPI centreRIICO Incubation Centre

RIICO IT Park, Kota

RIICO IT Park, Udaipur

In addition to Jaipur, other major cities in Rajasthan like Jodhpur, Udaipur and Kota

are also being developed as suitable centers for the IT/ITeS sector. These latter cities

have smaller IT/ITeS Parks ranging from 5-10 acres and all have high speed data

communications infrastructure from a number of telecommunication suppliers.

Company Name

Infosys BPO 200 acres IT Services 900

Area Nature of Business No. of employees

Deutsche Bank 1,76,544 sq ft Backend services 1200

EXL Service 38,655 sq ft UnderDevelopment/

Undisclosed

IT Services

Source: Mahindra World City, Jaipur

IT growth cluster acrossRajasthan

IT SEZs being set up in the State

(i) IT SEZ at Jaipur by Mahindra World City

(ii) IT SEZ at Jaipur by Vatika SEZ Developer.

(iii) IT SEZ at Jaipur by Genpact Infrastructure

Pvt. Ltd.

(iv) IT SEZ at Khushkheda-Bhiwadi (Alwar) by

Somani Worsted Ltd.

(v) IT SEZ at Kaparda (Jodhpur) by Mansarovar

Industrial Development Corporation (MIDC)

Rajasthan offers a generous and competitive range of subsidies and exemptions from taxes for investors in Rajasthan under Rajasthan Investment Promotion Scheme 2010. An investor friendly IT and ITeS Policy 2007 is already in place which provides lucrative incentives to IT/ITeS industries.

Rajasthan’s incentives include:

Land rebate up to 60% depending on the type and size of investment

50% exemption from stamp duty on registration of land

50% exemption on electricity duty for 7 years. The captive power unit setup by eligible units will be exempted from payment of Electricity Duty

50% exemption on conversion charge payable for change of land use

Training Incentives: Rs2000 per candidate to training centers provide training on communication/soft skills & whose candidates find placement in IT &ITES Companies

Rebate for patent: Up to Rs50000 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: Rs.10000 per employee, projects that create employment of more than 500 people in the case of IT industry or

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Attractive Incentives1000 people in ITES Industry.

A subsidy up to Rs. 25 Lacs at the rate of Rs. 10,000 per employee would be given to the first five IT/ITeS companies investing in the State and directly employing more than 50 employees in IT or 100 employees in ITeS sector.

Floor Area ratio allowed upto 2.5

Simplified labour laws (for example women are allowed to work on night shifts)

Customized package for strategic or important projects

Venture Capital support from Rajasthan Venture Capital Fund (RVCF)

Investment Subsidy: 30% of taxes which have become due and have been deposited by the enterprises for 7 years (10 years for MSME)

Employment Generation Subsidy: 20% of taxes which have become due and have been deposit by the enterprises for 7 years (10 years for MSME) Rs15000 per employee per year for completed service. Rs18000 in case of women/ SC/ST/Women/ PwD category

Special package for Micro, Small & Medium Enterprise (MSMEs)

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To view the entire policy please log on to www.investrajasthan.com

http://www.rajasthan.gov.in/rajgovresources/actnpolicies/it_policy.pdf

Rajasthan offers a good and comfortable quality of life to its residents.

The State has excellent medical & health facilities and is home to several state-of-

the-art hospitals such as Fortis, Narayan Hrudalaya, Santokba Durlabhji Memorial

Hospital and S.K Soni Hospital

The State has a large number of renowned educational institutions such as IIM, IIT,

AIIMS, BITS Pilani, Raffles University, FDDI, Mayo College, Amity University and many

more.

Rajasthan has 2 out of 3 hotels in India that have been ranked amongst 15 best

hotels in the world and top 5 in Asia by the readers of Travel & Leisure, USA in 2011.

The State has almost all major hotel brands including Oberoi, Taj, ITC, and Marriott.

Rajasthan has a very peaceful environment with one of the lowest crime rates in the

country

Jaipur, the State capital is a modern city, with low congestion and pollution with all

conveniences and a great night life like that of a metropolis including restaurants,

cinemas, malls and supermarkets.

Good Quality of Life

Generating higher levels of economic growth and prosperity through increased private

sector investment is a top priority for the Government of the State of Rajasthan.

The Bureau of Investment Promotion (BIP) is the primary State Institution supporting

inward private sector investment in Rajasthan. BIP is committed to providing a

professional service and a timely response to current and prospective investors in the

State. The Agency assists investors to objectively evaluate Rajasthan as a location for

their investment projects. It works with State and Local Governmental authorities to

expedite approvals, where necessary, to enable a fast start-up of operations.

Going by the phrase ‘time is money’, the Government has introduced a Single Window

system that serves as a single point interface between investors and various

government departments to ensure faster decision-making on applications for licenses

and permits.

A Welcoming &Supportive Government

Time bound approvals and clearances

Online submission of application

Mandatory to submit application only through this

system to render transparency to the system

BIP is the nodal agency for this system

Single WindowSystem

BIP’s Messageto Investors

E-governancean area of opportunity E-Governance is an area in which Rajasthan is investing and

the Government has launched several projects to improve

efficiencies and provide basic services to people online. As

part of this effort, the State has mandated all Departments

of State to earmark 3% of their overall budgets for IT

implementation. E-governance projects within the State

cover a diverse range of areas including Single Window

System, e-procurement, VAT and Commercial Taxes, Disaster

Management Information System, Litigation Information

Tracking & Evaluation System and Land Record

Computerization.

As the IPA for Rajasthan, the Bureau of Investment Promotion (BIP)

offers you a dedicated professional support team for your IT / ITeS

investment.

We are a One Stop Shop for all your investment needs, from

project inception through completion to investment aftercare.

Guided by the highest standards of business ethics, we promise to

make a timely and effective response to your enquiries and to

provide information on all aspects of investment in Rajasthan.

We look forward to meeting with you soon and we warmly invite

you to visit Rajasthan to see for yourself the exciting opportunities

available.

Please contact us using the details given on the back cover.

Contact Officers

Dr. Purushottam Agarwal Commissioner, BIP

Ms. Kavita RajoraIT/ITeS Sector Incharge, BIP

Bureau of Investment PromotionUdyog Bhawan, Tilak Marg, Jaipur 302005Rajasthan, IndiaTel. +91-141-2227274, 2227812, 2227713Fax +91-141-2227506www.investrajasthan.comE-mail: bip.raj@nic.in

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