Hanumangarh, located in the northern part of Rajasthan, is primarily an agricultural district with growing industrial potential. Despite its strong agricultural base, the district's industrial development remains in its nascent stages, with agro-processing, cotton textiles, and mustard oil extraction being the major industrial activities. This paper examines the existing industrial landscape, the potential for growth in renewable energy and agro-based industries, and the role of government policies in shaping the district's future industrial growth.

In the field of industrial and regional development notable work has been done by many eminent scholars to provide a strong base for the regional aspect for overall growth of any area or region.

In this aspect, Michael E. Porter, in "The Competitive Advantage of Nations" (originally published in 1990), explores how nations can gain competitive advantages through industry development. It discusses factors like innovation, firm strategy, and national policies. Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.

"Economic Development" by Michael Todaro and Stephen C. Smith, ( 2015, 13^th edition) gives foundational work on economic and industrial development theories, policies, and practices. It covers case studies from both developed and developing countries. The speed and range of economic development continues its rapid, uneven, and sometimes unexpected evolution. This explains the unprecedented progress that has been made in many areas of the developing world but confronts the enormous problems and challenges that remain to be addressed in the future. This shows the wide diversity across the developing world in their extent of economic development and other characteristics; and the differing positions in the global economy that are held by developing countries.

"Industrial Policy and Development: The Political Economy of Capabilities Accumulation" edited by Mario Cimoli, Giovanni Dosi, and Joseph E. Stiglitz, (2009), discusses the role of government and industrial policies in building economic capabilities, especially in developing nations. "Innovation and Growth: From R&D Strategies of Innovating Firms to Economy-wide Technological Change" by Mark Rogers, (2004) discusses the relationship between innovation, research and development (R&D), and industrial growth.

"The Oxford Handbook of Industrial Policy" edited by Arkebe Oqubay, Christopher Cramer, Ha-Joon Chang, and Richard Kozul-Wright, (2020) provides an extensive look at various aspects of industrial policy, covering empirical data, theoretical models, and policy applications. Industrial policy has long been regarded as a strategy to encourage sector, industry, or economy-wide development to competitiveness and structural change in both advanced and developing countries. It has also been one of the defined contested issues in economics, reflecting ideologically inflected debates and shifts in prevailing ideas. The Oxford Handbook of Industrial Policy presents a comprehensive review of and novel approaches to the conceptual and theoretical foundations of industrial policy. It also presents analytical perspectives on how industrial policy connects to broader issues of development strategy, infrastructure development, human capital, and political economy.

"Regional Industrial Development" by H. D. Watts, (1980), examines patterns of industrial development across different regions, focusing on how regional policies and resources impact growth. Though older, it provides a foundational understanding of key concepts in regional industrial development. "The New Industrial Geography: Regions, Regulation, and Institutions" edited by Trevor J. Barnes and Meric S. Gertler, (2002), offers a comprehensive overview of industrial geography, looking at how regions build competitive industries and the role of regulatory frameworks and institutions. "Regional Development: Concepts, Methodologies, Tools, and Applications" by Information Resources Management Association (IRM), (2018) is a broad collection of papers covering various dimensions of regional development, including industrial policy, economic growth strategies, and case studies of specific regions.

"Industrial Clusters and Regional Business Networks in England, 1750-1970" by John F. Wilson and Andrew Popp, (2003), focused on historical development in England, this book provides insights into the long-term evolution of industrial clusters and networks that can be applied to modern regional studies. "Innovation and Regional Development" edited by Ugo Fratesi and Lanfranco Senn,(2009), explores the relationship between innovation and regional development, including case studies and models on how innovation drives industrial growth in specific regions. "Smart Specialisation: Opportunities and Challenges for Regional Innovation Policy" edited by Dominique Foray, (2014), discusses "smart specialization" strategies for regional development, offering a modern approach to targeting specific industries for regional growth.

"The Role of Industrial Policy in Developing Countries" by Ha-Joon Chang,(1993), published in the journal Development and Change, examines how industrial policies have influenced economic transformation in developing economies. "Trade, Industrial Policy, and International Competition" by Dani Rodrik, (1995), provides a comprehensive analysis of how trade policies can impact industrial development, especially in developing nations. The paper addresses the role of international competition and protectionist measures.

"Why Do Some Countries Produce So Much More Output per Worker than Others?" by Robert E. Hall and Charles I. Jones, (1999), is an influential paper (published in The Quarterly Journal of Economics) explores the factors behind productivity differences among countries, including industrial policies and capital accumulation. "Capabilities, Competitiveness, Nations, and Development" paper by Sanjaya Lall, (2001), discusses how the development of industrial capabilities contributes to economic growth and competitiveness in developing economies. "Structural Transformation, Industrialization and Inclusive Growth: Theories and Empirics" by Margaret S. McMillan and Dani Rodrik,(2011), focuses on the structural transformation required for sustainable industrial development, especially in transitioning economies. It also covers case studies from Africa and Asia.

"Regional Industrial Policy and the Rise of East Asia" by Robert Wade, (2004), examines how East Asian countries achieved rapid industrialization through regional policies and offers insights into how similar strategies might be applied elsewhere. "Industrial Clusters in Developing Countries: A Review of Experiences and Research Agenda" by Khalid Nadvi and Hubert Schmitz, (1994), is widely-cited paper (published in World Development) provides a review of industrial clusters in developing regions, discussing how clustering can lead to competitive advantages for local industries. "The Role of Institutions in Regional Development: The Effects of Public Investment in Norway" by Kjetil Bjorvatn and Katarina Mahbubani, (2011) focusing on Norway, looks at how public investment impacts regional industrial growth and considers the role of institutional support in fostering regional development.

"Industrial Policy, Regional Development, and Globalization" by Ha-Joon Chang, (2003) Chang explores how globalization and industrial policy influence regional development, with a focus on developing countries. "Economic Geography and Regional Development: The Role of Clusters" by Michael Porter, (1998) work on economic clusters is influential in understanding how clusters drive industrial success and regional growth. This paper is part of his broader work on competitive advantage. "Regional Resilience and Industrial Policy" by Ron Martin, (2012) investigates how regions can build resilience in the face of economic shocks, with an emphasis on industrial policy as a tool for maintaining regional stability and growth.

Current Industrial Landscape

Agro-Based Industries

Agriculture remains the backbone of Hanumangarh’s economy, with crops such as wheat, mustard, and cotton forming the bulk of production. The proximity of Hanumangarh to fertile regions like Punjab allows for a smooth supply chain for raw materials and agricultural products. Agro-processing industries dominate the district's industrial landscape, particularly in:
Cotton Ginning and Textiles: Cotton, one of the district’s main crops, has led to the development of numerous cotton ginning factories and textile units. Hanumangarh’s cotton ginning industry produces approximately 1.5 million bales of cotton annually, a significant share of Rajasthan’s output. The cotton is largely processed into yarn and shipped to textile units within and outside Rajasthan.

Mustard Oil Extraction: With over 125,000 hectares dedicated to mustard cultivation, Hanumangarh is a significant player in Rajasthan’s mustard oil industry. The district produces approximately 180,000 tons of mustard oil annually, making it a vital supplier to both the domestic and interstate markets. Mustard oil extraction plants are spread across the district, creating employment opportunities and value addition to the raw product.

Small and Medium Enterprises (SMEs)

Hanumangarh’s industrial development has been supported by small and medium-sized enterprises (SMEs), which play a crucial role in employment generation. The majority of these enterprises are involved in:

1. Brick kilns
2. Mechanical workshops
3. Food processing and packaging
4. Manufacturing of small machinery and tools

SMEs in Hanumangarh benefit from the district’s strategic location, with easy access to transport routes leading to Haryana and Punjab, two major industrial states.

Industrial Growth Potential

Renewable Energy: Solar Power

Hanumangarh, like the rest of Rajasthan, is blessed with abundant sunshine, making it ideal for solar power generation. With an average solar radiation of 5.5–6.5 kWh/m²/day, the district is a prime location for solar energy projects.

The Rajasthan government has identified Hanumangarh as a potential site for expanding solar power infrastructure. The district currently has 100 MW of installed solar capacity, and government policies are aiming to increase this to 500 MW by 2025. The growth of solar energy in Hanumangarh not only addresses the district’s power needs but also provides a new avenue for industrial development, attracting investments in renewable energy technologies.

Agro-Processing Expansion

Hanumangarh’s strong agricultural base provides ample opportunities for expanding its agro-processing sector. Investment in modern food processing units, cold chains, and warehousing infrastructure can transform the district into a significant agro-industrial hub. Specific areas of growth include:

1. Wheat Processing: The district produces over 900,000 tons of wheat annually, and the establishment of flour mills and packaging units can create added value.
2. Oilseed Processing: Mustard, guar, and sunflower seed processing units can be expanded to meet the growing demand for oils and oil-based products.

Logistics and Warehousing

The district’s proximity to major highways (NH-54) and railway lines makes it a viable candidate for logistics and warehousing development. Hanumangarh can serve as a distribution hub for Rajasthan, Punjab, and Haryana, especially for agricultural and textile goods. Investment in modern logistics infrastructure, including cold storage facilities, could enhance the district’s role in regional trade.

Government Support and Policies

The Rajasthan government has initiated several schemes to promote industrial growth in districts like Hanumangarh, including the Rajasthan Investment Promotion Scheme (RIPS) and subsidies under the solar energy policy. Key initiatives include:

1. RIPS (Rajasthan Investment Promotion Scheme): This scheme offers financial and tax incentives for businesses setting up in agro-processing, manufacturing, and renewable energy sectors. Companies setting up in Hanumangarh benefit from a 100% exemption from state goods and services tax (SGST) for up to seven years, alongside land subsidies and capital investment grants.
2. Solar Energy Development Subsidies: The Rajasthan Renewable Energy Corporation (RREC) offers a 30% capital subsidy for new solar projects. This subsidy is expected to increase investment in solar power plants in Hanumangarh, furthering the district’s renewable energy capacity.

Findings and Challenges to Industrial Development

Lack of Skilled Workforce

1. One of the major challenges facing Hanumangarh’s industrial growth is the lack of a skilled workforce.
2. Most of the district’s labour force is engaged in traditional agriculture, and there is a shortage of skilled labour to support advanced industrial activities, such as modern manufacturing and renewable energy.

Infrastructure Gaps

While Hanumangarh has a decent road and rail network, gaps in industrial infrastructure such as-

1. uninterrupted power supply,
2. modern industrial parks, and
3. warehousing facilities remain.

Addressing these gaps will be essential for attracting large-scale industries.

Hanumangarh district, with its robust agricultural base and growing industrial sector, holds significant potential for future development. Agro-processing and renewable energy, particularly solar power, are emerging sectors that can drive industrial growth. However, for Hanumangarh to realize its full industrial potential, investments in infrastructure, skill development, and logistics will be critical. With the right policies and support, the district can transition from an agro-based economy to a diversified industrial hub.

1. District Industries Center (DIC), Hanumangarh. "Annual Industrial Report, 2023."
2. Rajasthan State Industrial Development and Investment Corporation (RIICO). "Hanumangarh District Industrial Development Plan, 2022."
3. Rajasthan Renewable Energy Corporation (RREC). "Solar Power Potential in Hanumangarh District, 2023."
4. Government of Rajasthan. "Rajasthan Investment Promotion Scheme (RIPS), 2021."