Rajasthanâ€™s IT, electronics exports notch 7-fold surge in 6 years
JAIPUR: IT and electronics exports from Rajasthan has zoomed from a megre Rs 421 crore in 2011-12 to Rs 2800 crore in 2017-18 mirroring the rapid rise of the state as a destination for IT and ITes, thanks to the presence of companies like Infosys, Deutsche Bank, Metlife and the proliferation of SMEs in the sector.
Traditionally, textiles, gem and jewellery, agro and food products, engineering and handicrafts contributed a major chunk to stateâ€™s exports. Even though Jaipur had attracted the big companies like Genpact in the past, the ecosystem was not there for the expansion of the IT and ITeS sector.
â€œThe presence of accounting professionals drove many companies to set up their BFSI (banking, finance services and insurance industry) operations. Lower cost of doing business, assured supply of power and low attrition influenced their decision to set up base here. The exports reflect that trend,â€ said Sanjay Srivastava, chief operating officer of Mahindra world city.
In contrast, the shipments of agri and food products has witnessed a steep decline to Rs 3093 in 2016-17 crore after touching a high of Rs 14,517 crore in 2012-13. The gem and jewellery exports are growing but at a tepid rate. The growth in marble, granite and dimensional stone exports is not very encouraging.
â€œThere is a need to bring in greater value-addition in sectors like agri products, gem and jewellery and stones. For this, companies need to invest more in machinery and processes. Unless the level of value addition increases, the earnings will not rise. There is a lot of scope for value addition in many of the sectors in Rajasthan,â€ said Meena Verma, general manager, Export-Import
The deepening of IT sector in Rajasthan is fallout of big centres in the country getting overcrowded. Improved infrastructure, availability of talent and the rise of startup ecosystem in the state are now catching the attention of the companies looking to expand.
There are about 250 small and medium companies operating out of Jaipur alone in the IT sector. Most of them are not into the typical call-centre operations or providing software services, said the promoter of an IT company.
â€œBesides call centres, software services, many of these companies are engaged in product engineering, building information management and other verticals. This shows the diversification of the sector which is a hallmark of any established IT ecosystem,â€ he said.