Rs 4 lakh crore & counting: What UP stands to gain from Ayodhya Ram Mandir, tourism

Ram Mandir in Ayodhya and other tourism plans could bolster Uttar Pradesh's finances by Rs 20,000-25,000 cr in tax revenue, says an SBI report. 

The report, released on January 21, sees the state gaining big from the Centre's Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme. Uttar Pradesh's own tax revenue is expected to be Rs 2.5 lakh crore in FY24, according to its Budget.

SBI's report sees tourist spending in the state doubling this year compared to 2022. “Given the completion of Ram Mandir in Ayodhya and initiatives taken by the UP government to promote tourism, we believe that the total expenditure by tourists in UP may cross Rs 4 lakh crore mark by end of this year,” the report noted.

Domestic tourists spent nearly Rs 2.2 lakh crore in 2022, with foreigners spending another Rs 10,000 crore on the state. In 2022, Ayodhya recorded 2.21 crore tourists.
“The state government can devise an encompassing travel itinerary that gives the discerning tourists a glimpse of the enchanting history across multiple places of importance in the state as also surrounding states on a hub and spoke model,” the note said, pointing that India could collaborate with other countries to create a tourist map.

UP, up and away
The surge in spiritual tourism has transformed the tourism landscape in UP, the report noted, resulting in improved physical and digital infrastructure, facilitating accessible connectivity, and spurred a substantial increase in travel.
Lauding the state for its efforts on economic and socioeconomic parameters, the report said Uttar Pradesh is likely to cross the $500 billion mark as India becomes a $5 trillion economy in FY28.

“UP is estimated to have second most weightage in Indian GDP by FY28, and its GDP could overtake Norway, the Scandinavian country with second position in Human Development Index (HDI),” it said.