The PRASHAD scheme launched by the Centre and various state government initiatives are likely to contribute towards the development of spiritual tourism in India, given an SBI Research report published on January 21.
Indian economy is likely to be greatly affected. It further noted that UP government initiatives alongside the newly constructed Ram temple in Ayodhya could lead to a ₹25,000 crore annual increase in tax revenue for FY25 as more visitors come to stay.
The growth of spiritual tourism has led to a significant change in the United Poland landscape, according to the report. It has led to improved physical and digital infrastructure, enabling easy connectivity with the resultant increase in travel, motivating people to relate well with historical locations.
UP has had swift tourism growth that can be attributed to its many holy sites— the Ganga River, Varanasi, the Taj Mahal, and a new Ram Temple in Ayodhya, among others.
State government estimates showed that around 32 crore tourists are expected in the state for a year, with Ayodhya attracting an impressive footfall of over 2.21 crore alone. The average spending of these tourists costs over ₹2 lakh crore.
However, the foreign tourists who ranked UP as fifth in India brought another ₹10,500 crore to this state’s economy. Tourism growth places UP for economic gains on a large scale.
If India has the intention of becoming a $5 trillion economy before FY28, then it requires an 8.4 percent CAGR until 2027 in US dollars. This results in a realistic 11.0-11.5 percent nominal GDP growth annually in Indian Rupees. India is trying to accomplish this milestone; UP’s journey will be at the center of this growth curve.
However, Uttar Pradesh becomes one of two states that could shed the tag below $500 billion by 27, marking a landmark as India enters the global top three. For instance, projections suggest that UP and Maharashtra will exceed $500 billion together, contributing to 10 percent of India’s GDP.
In other words, by 2027, India’s fast economic growth is expected to surpass the economies of European states such as Norway and Hungary in terms of Uttar Pradesh.
Meanwhile, the Indian economy will hit $5 trillion in FY28 and is also likely to defy headwinds with a growth rate of more than 7 per cent. Uttar Pradesh (UP) has become a vital stakeholder, evolving as the second-highest weightage in Indian GDP by FY28, topping Norway and other countries on its merits.
In fiscal year (FY)23, UP contributed above 10 per cent to India’s Gross Value Added (GVA), while industrial and agriculture meant over. It points to infrastructural and investment initiatives for the state, according to the report.
Regarding exports, too, UP boasts manifest progress with a CAGR of 7.1 per cent in FY2013-23 above the national average. State doubled its national market share of exports and ranks it sixth in the country, noting this.
Ranking second in the country on the Ease of Doing Business report for the year 2019, UP is still an attractive place to invest. It has also increased its installed power generation capacity twofold in FY2014-FY2022. The diverse development of the state hence implies a hopeful trend for India’s economic history.
