Rajasthan is India`s largest state with an area of 342239 sq. kilometer. Pre-Independence the districts in Rajasthan were separate entities. However, post-Independence, the princely kingdoms were merged to form the present day Rajasthan. With the formation of a state the economy of Rajasthan was of main concern. Inspite of being a covered largely by desert the state has established itself as a successful economy. Today Rajasthan occupies 10.74 percent of the country`s total area. The economy of Rajasthan is primarily based on agricultural and pastoral. The state is rich in minerals and is one of the leading tourist destinations in the world.

Hence the main sources of revenue for the state are agriculture, mining, handicrafts, industry and tourism. As the main economy of Rajasthan is agrarian based the total cultivated area comprise of around 20 million hectares. Agriculture covers 22.5% of the total economy of Rajasthan. Around 20% of the total land has been irrigated. The main crops that are grown in Rajasthan are barley, wheat, gram, pulses, oil seeds, bajra, pulses, jowar, maize and ground nuts. Fruits, spices and vegetables are also grown here.

Besides agriculture industry too has a key role to play in the economy of Rajasthan. This sector contributes about 32.5% to the total economic sector of Rajasthan. The major industries of Rajasthan include textiles, rugs, woolen goods, vegetable oil and dyes. It is the fourth largest producer of spurn yarn in India. Mining is at its best in Rajasthan. It is the second largest supplier of cement. Deposits of copper and zinc are widely available.

Tourism is, however, the leading sector that contributes to the economy of the state. The diverse landscape of Rajasthan makes it one of the most popular tourist destinations in India. From traditional Indian customs to folk culture; from the Aravalli ranges to the Thar Desert---the variety that Rajasthan offers is unique. Handicraft is another important sector that has given a boost to the economy of Rajasthan. As tourists visit the place they are interested in the art and craft of Rajasthan. Metal work, leatherwork, stone crafts and several other forms of art and craft are the main source of occupation in most parts of Rajasthan.

As travel and tourism has become an important sector in India a lot of renowned companies are investing in this field. From introducing new flights to the construction of new hotels---all these are part of the travel and tourism industry. Hence in addition to the already exiting luxury and heritage hotels a number of projects are coming up to accommodate more tourists.

The economy of Rajasthan is still growing. With the improving government policies and good infrastructure the economy of Rajasthan is sure to improve. More and more private sector companies will be investing in the state. The best aspect of Rajasthan`s economy is that inspite of natural hurdles it has strove to become a known name in the economy of India.