Ram Mandir consecration: Ayodhya tourism to bolster Uttar Pradesh's tax revenue by up to Rs 25,000 crore

Ram Mandir Consecration: Uttar Pradesh's Ayodhya is gearing up to become a spiritual tourism place. Ayodhya Ram Mandir consecration and the government's Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme is expected to add to the Uttar Pradesh government's treasury.

Uttar Pradesh's earnings

The Ram Mandir and other tourism plans is expected to bolster Uttar Pradesh's finances by Rs 20,000-25,000 cr in tax revenue, says an SBI report. Uttar Pradesh's own tax revenue is expected to be Rs 2.5 lakh crore in FY24, according to its Budget.

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The SBI report also mentions that the tourist spending in the state will double this year compared to 2022, expecting the total expenditure to cross Rs 4 lakh crore mark by the end of this year.

“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.

Tourist spending in Uttar Pradesh

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.

The SBI report further mentioned that Uttar Pradesh is likely to cross the $500 billion mark as India becomes a $5 trillion economy in FY28. This due to the surge in spiritual tourism giving rise to improved physical and digital infrastructure, facilitating accessible connectivity, and spurred a substantial increase in travel.

“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),” the report added