Published: 20 January 2026DevdiscourseRajasthan
Rajasthan Cabinet Approves Aerospace & Defence Policy and Semiconductor Policy
The Rajasthan state cabinet, chaired by CM Bhajanlal Sharma, approved two landmark policies on January 21, 2026: the Rajasthan Aerospace & Defence Policy and the Rajasthan Semiconductor Policy 2026. Industry Minister Col Rajyavardhan Rathore briefed the media.
The Aerospace & Defence Policy provides special incentives for manufacturing, precision engineering, and MRO (Maintenance, Repair, Overhaul) services, classifying projects into large, mega, and ultra-mega categories. Incentives include state tax reimbursements, capital subsidies, flexible land payments, lease subsidies, and electricity duty exemptions. The Semiconductor Policy promotes domestic chip manufacturing, fabless design, packaging, and semiconductor parks with focus on skill development, R&D, and green manufacturing.
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Q: Discuss Rajasthan's January 2026 Aerospace & Defence and Semiconductor policies and their potential to position the state as a hub for high-technology manufacturing.
Answer (50 words):
Rajasthan cabinet, chaired by CM Bhajanlal Sharma, approved the Aerospace & Defence Policy and Semiconductor Policy-2025 on January 21, 2026. The first offers incentives for manufacturing, precision engineering, and MRO services across large, mega, and ultra-mega categories. The second promotes chip fabrication, fabless design, packaging, and semiconductor parks with green manufacturing focus.
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CoverageRajasthanTypePolicySubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourceDevdiscourse
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Linked questionMedium
Which mandi in Rajasthan saw 2 lakh paddy sacks damaged due to unseasonal rain on November 4?
Explanation · Correct answer CAt Bhamashah Mandi in Kota, about 2 lakh sacks of paddy were soaked by sudden rain.
Frequently asked questions
What policies did the Rajasthan Cabinet approve for Aerospace Defence and Semiconductor sectors?
The **Rajasthan Cabinet** approved two landmark industrial policies: the **Aerospace & Defence Policy** and the **Semiconductor Policy** to attract investment in cutting-edge manufacturing. These policies offer incentives including land allocation, tax rebates, and infrastructure support to position Rajasthan as a hub for high-tech defence manufacturing and semiconductor fabrication.
Why is Rajasthan focusing on Aerospace Defence manufacturing and semiconductors?
Rajasthan's push into **Aerospace & Defence** and **semiconductor manufacturing** aligns with India's broader **Atmanirbhar Bharat** (self-reliant India) initiative. The state has strategic advantages: proximity to defence corridors, availability of land for large manufacturing plants, and the Rajasthan Investment Promotion Scheme (**RIPS**) framework. The semiconductor policy specifically targets the global chip supply chain diversification trend.
What is the significance of a state-level Semiconductor Policy in India?
A state-level **Semiconductor Policy** complements India's national **Semicon India Programme** (₹76,000 crore incentive package). States like Gujarat, Rajasthan, and Odisha are competing to attract **fab (fabrication plant)** investments. The policies offer capital subsidies (up to 50% for mega projects), power tariff rebates, and single-window clearances to compete globally with Taiwan, South Korea, and China.
What is the Rajasthan Investment Promotion Scheme (RIPS) and how does it relate to these policies?
The **Rajasthan Investment Promotion Scheme (RIPS)** is the state's flagship industrial incentive framework, providing investment subsidies, interest subsidies, electricity duty exemptions, and employment generation bonuses. The newly approved **Aerospace & Defence** and **Semiconductor Policies** operate under the RIPS umbrella, extending enhanced benefits to attract FDI and domestic investment in these priority sectors.
How do Rajasthan's new industrial policies align with India's defence indigenisation goals?
India's **Defence Acquisition Procedure (DAP) 2020** mandates increasing indigenous content in defence procurement. Rajasthan's **Aerospace & Defence Policy** supports this by offering special economic zone benefits, R&D incentives, and export promotion support to defence MSMEs and OEMs. The policy targets India's goal to achieve **₹1.75 lakh crore in defence production** annually, up from the current ~₹1.27 lakh crore.
