Why To Invest In Jaipur?
Founded in 1727 by Maharaja Jai Singh II, the Hindu Rajput ruler of the kingdom Amber, Jaipur is one of the earliest planned cities of modern India. Lovingly known as the Pink City of India, it is one of the best and most sought-after cities to live and work in the country.
A city of 35 lakh+ people and famous more for its tourism than anything else, has witnessed rapid growth and development in the recent past. This development, which has been limited to metros until now, is set to change its skyline. Over the next 10 years the city will witness new growth from IT, ITeS companies and opening of new industries most of which will be around Jaipur Ajmer Expressway. This area is going to have a new population of 10 lakhs come up as a new town between 20-50 kms from Jaipur. The key beneficiary of this development would be areas surrounding the 3000-acre Mahindra RIICO Special economic zone.
Choosing the right investment option is of utmost importance to investors for the successful completion of future goals. The most important factor determining future returns is unbiased futuristic expectations. One must consider the following factors while investing.
1) Current price levels
2) Expected future price levels (best case and worst-case scenario
3) Time frame of development
Given the Industrial growth and government focus to develop the area around expressway, there will be huge demand of residential development, hence investment in this zone will definitely yield higher returns in next 3-5 years.
Jaipur-Ajmer Expressway
- First 6-lane controlled toll expressway connecting Jaipur to Ajmer, forms a segment of the NH-8 which is a part of the Golden Quadrilateral project.
- It holds strategic importance since it connects India’s political capital (New Delhi) with its financial capital (Mumbai) and will benefit from in-progress Delhi Mumbai Industrial Corridor (DMIC).
- The biggest industrial project of Jaipur in terms of development area (3000 acres) and employment generation (2.5 lakh jobs) – Mahindra world city – is on this expressway. More than 10 lakh people expected to reside here in the next 7-10 years. [Appx. 18 KMs from Jaipur]
- Another IT SEZ, Vatika IT park in the same vicinity, is expected to create 10,000+ jobs [Appx. 22 KMs from Jaipur]
- An estimated 25,000 acres land will be developed alongside expressway that will bring excellent growth opportunity on the investments in this zone.
- Ajmer and Pushkar are important tourist destinations and several international as well as domestic tourists travel on this road.
Mahindra World City, Jaipur
The project was started in 2005 by Mahindra’s in partnership with RIICO with the vision of creating a world class business city in Jaipur on the lines of Mahindra world city, Chennai. The area has been approved under Special economic zone (SEZ), an area designated by the Indian government where several benefits are given to the companies specially in terms of relaxation on the import duty on import of any accessories/machinery to be used for production and the companies get income tax benefits for 15 years. Due to these benefits, companies looking for expansion, create their setup inside SEZ as it is more beneficial to them. Mahindra World City is spread across 3000 acres the and with more than 150 companies it will be creating 3.5 lakhs new jobs in the next 3 -5 years.
IT/ITeS/Banking Sector
It has been witnessed in several pockets across India that IT/ITeS sectors are the biggest drivers of residential and commercial real estate development. Mahindra World City, Jaipur has already attracted leading corporates including Infosys, JCB, Wipro, Infosys, Deutsche Bank, State Bank of India, ICICI Bank, Genpact, EXL BPO, Tech Mahindra, QH Talbros, Connexions, Nagarro & Nucleus Software and rapidly continues to expand its customer base. Being mass employers, they are creating new job opportunities in turn increasing demand for the residential development.
Export Industry – Apparel & Handicrafts
Jaipur has been a hub of export-oriented products such as womenswear, accessories, jewellery, handicraft and furniture and as the SEZ offers important tax sops like Income tax rebates for 15 years to its occupants. Block print and embroidery on jute (for cushion), antique look by stone washing after printing and other innovative development are the major attraction not only for tourists but also big export items. Due to this local as well as national companies are moving their factories to the SEZ.
Domestic Tariff Area
Though Special economic zone (SEZ) is predominantly an export-oriented concept, it has a domestic tariff area (DTA) where companies can set-up their unit, get quality infrastructure & facilities and tax benefits. In a DTA, companies are free to sell their goods and services in the domestic market. The DTA area has been in demand in Mahindra world city, Chennai with companies like BMW establishing their facilities there. The demand for DTA is bound to increase further as the Indian market grows further.
Warehousing And Logistics
Rajasthan plays an important role in logistics and Jaipur is considered as a major distribution centres for industrial goods, batteries, textile, automobiles, etc. Forty per cent of the freight corridor also passes through the state. As the logistics industry grows, land along NH8 will become even more precious since it connects Delhi and Mumbai. With several MNCs here, there is tremendous opportunities to investors for a fruitful handshake and it will further boost up demand for quality logistics infrastructure.