Rajasthan rolls out MSME reforms, semiconductor incentives

Rajasthan chief minister Bhajanlal Sharma on Saturday announced a series of measures aimed at promoting micro, small and medium enterprises (MSMEs), startups and the electronics sector, including the development of artisan markets, financial support for 25 startups and incentives for semiconductor manufacturing.

Addressing a programme organised on the occasion of International MSME Day, Sharma said MSMEs form the backbone of the state’s economic growth, employment generation and self-reliance.

He said Rajasthan has emerged as the country’s fourth-largest MSME state with more than 3.3 million enterprises, attributing the growth to government policies and the efforts of entrepreneurs.

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— Bhajanlal Sharma (@BhajanlalBjp) June 27, 2026

The chief minister said the state government will develop and operate artisan markets under the public-private partnership (PPP) model for handicraft workers, weavers and micro enterprises.

In the first phase, these markets will be established in Pushkar, Nathdwara, Jaisalmer and Alwar.

Sharma also announced financial assistance under the One District One Product (ODOP) scheme for processing units based on identified species and plants under the Panch Gaurav Yojana.

To encourage investment in the electronics and semiconductor sector, he said the minimum investment threshold under the Rajasthan Investment Promotion Scheme (RIPS)-2024 for selected manufacturing components would be reduced to Rs 15 crore.

Projects covered under the Centre’s Electronics Component Manufacturing Scheme (ECMS) will now be allowed to make investments in five phases instead of the existing three under RIPS-2024, he said.

Sharma further announced that the monthly skill development and training allowance for women and persons with disabilities employed in the electronics and semiconductor sector will be increased from Rs 4,000 to Rs 6,000.

He also said that 25 new startups would receive financial assistance this year through the Rajasthan Venture Capital Fund.

The chief minister said the state had implemented the Direct Allotment Policy-2025 to ensure land availability for industries. Under the policy, more than 1,600 industrial plots have been allotted during the past year.

He said the government has reduced the time limit for land-use approval for MSME units in urban areas from 60 days to 30 days and cut the approval period for setting up industries from 120 days to 30 days.

“The state is developing new industrial hubs, including solar panel manufacturing, ceramic, data centre and defence manufacturing parks,” he said.

During the programme, Sharma launched the Rajasthan Industrial Development Policy, an ODOP coffee table book and the RAMP (Raising and Accelerating MSME Performance) portal.

He also distributed cheques worth over Rs 13 crore for loans, grants and subsidies to beneficiaries of various government schemes, and handed over land allotment letters and offer letters to beneficiaries of RIICO schemes.