With an area of 342,269 sq km Rajasthan is geographically the largest state of India. It encompasses most of the area of the large, inhospitable Great Indian Desert (Thar Desert). The state shares border on the west with Pakistan, on south-west with Gujarat, on south-east with Madhya Pradesh, on north-east with Uttar Pradesh and Haryana and on north with Punjab.

The main geographic features of Rajasthan are the Thar Desert and the Aravalli Range, which runs through the state from south-west to north-east, almost from one end to the other, for more than 850 km. About three-fifths of Rajasthan lies northwest of the Aravallis, leaving two-fifths on the east and south. The north-western portion of Rajasthan is generally sandy and dry. Most of the region is covered by the Thar Desert, which extends into adjoining portions of Pakistan. The Aravalli Range does not intercept the moisture-giving southwest monsoon winds off the Arabian Sea, as it lies in a direction parallel to that of the coming monsoon winds, leaving the north-western region in a rain shadow. The Thar Desert is thinly populated; the town of Bikaner is the largest city in the desert.

Rajasthan's economy is primarily agricultural and pastoral. Wheat and barley are cultivated over large areas, as are pulses, sugarcane, and oilseeds. Cotton and tobacco are cash crops. Rajasthan is among the largest producers of edible oils in India and the second largest producer of oilseeds. Rajasthan is also the biggest wool-producing state in India and the main opium producer and consumer. There are mainly two crop seasons. The water for irrigation comes from wells and tanks. The Indira Gandhi Canal irrigates north-western Rajasthan.

The main industries are mineral based, agriculture based, and textiles. Rajasthan is the second largest producer of polyester fibre in India. The Bhilwara District produces more cloth than Bhiwandi in Maharashtra. Several prominent chemical and engineering companies are located in the town of Kota, in western Rajasthan. Rajasthan is well known for quarrying and mining in India.

Endowed with natural beauty and a great history, tourism is a flourishing industry in Rajasthan. The palaces of Jaipur, lakes of Udaipur, and desert forts of Jodhpur, Bikaner and Jaisalmer are among the most preferred destination for many tourists, Indian and foreign. Tourism accounts for eight percent of the state's domestic product. Many old and neglected palaces and forts have been converted into heritage hotels. Tourism has increased employment in the hospitality sector.