In a significant turn of events, the completion of the Ram Mandir in Ayodhya, coupled with strategic initiatives by the Uttar Pradesh government, is anticipated to drive tourism expenditure in the state to a staggering Rs 4 lakh crore by the close of 2025, as per a recent report by SBI Research.
The report suggests that the pilgrimage destination’s completion, combined with various tourism promotion measures, could lead to an additional tax revenue of Rs 20,000-25,000 crore for the state in the fiscal year 2025. This impressive economic outlook highlights the potential for Uttar Pradesh to emerge as a key player in the tourism sector.
Uttar Pradesh, with its rich tapestry of holy places and shrines, has witnessed a remarkable surge in domestic tourism. The state government estimates that in 2022, around 32 crore tourists, both domestic and international, visited Uttar Pradesh, with Ayodhya alone witnessing 2.21 crore footfalls. The total expenditure by these tourists surpassed Rs 2 lakh crore.
The pre-pandemic era saw India’s share in international tourism receipts at a modest 2.06%. However, the government’s PRASHAD (Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive) scheme, in collaboration with various states, has played a pivotal role in transforming spiritual travel. This initiative has not only enhanced infrastructure but has also disseminated knowledge in tier III and IV cities, fostering a conducive environment for the travel and hospitality sector to undergo a significant makeover.
The report emphasises the bullish stance on Uttar Pradesh, indicating that India is poised to become a $5 trillion economy by FY28. To achieve this, an 11.0-11.5% nominal GDP growth per annum is required until 2027. Uttar Pradesh is expected to be one of the two states surpassing the $500 billion mark in 2027, marking a significant milestone when India is projected to become the world’s third-largest economy.
As Uttar Pradesh positions itself at the forefront of India’s economic growth, the confluence of religious and cultural tourism, along with proactive government initiatives, is set to propel the state into a pivotal role in shaping the country’s economic landscape. The completion of the Ram Mandir stands as a symbol not only of religious significance but also as a catalyst for economic resurgence, making Uttar Pradesh a destination of choice for tourists from around the globe.
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