Is Ram Mandir Projected to Improve India’s Economic Situation?

Right from the demolition of Babri Masjid in 1992 to the Ram Mandir Consecration on 22 January 2024, Ayodhya has been a hot topic in the country. Construction of the temple is just the latest in a string of initiatives launched by the state and federal governments in the Ayodhya district. These initiatives are a direct result of the right-wing Bharatiya Janata Party's (BJP) determination to transform the city into a major spiritual center in the country in the run-up to the upcoming national elections.

There are currently 178 projects underway, with an estimated cost of 305 billion rupees ($3.6 billion), according to several media reports published recently. These projects include a railway station inspired by the Ram temple, an international airport, a contemporary township with its designated area, expanded roadways, and ornamental street lighting.

In a recently cited report released by SBI Research on January 21, several state government programs and the Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) program at the federal level are expected to contribute to the growth of India's spiritual tourism market.

Economic Boom Could Be Spurred by Spiritual Travel
Real Estate Developments Playing on Front Foot
Opening Up New Employment Prospects

Economic Boom Could Be Spurred by Spiritual Travel

According to the survey, the tourism scene in UP has been greatly affected by the recent boom in spiritual tourism. It has led to better physical and digital infrastructure, which makes connectivity easier for everyone, and it has increased tourism significantly, which means more people are visiting historical sites and learning about them. An unprecedented surge in domestic tourism has been recorded in Uttar Pradesh, a state home to several sacred sites and temples, including the Ganga River, Varanasi, the Taj Mahal, and the recently inaugurated Ram Temple in Ayodhya.

State official estimates put the number of tourists visiting the state in 2022 at approximately 32 crore, with a staggering 2.21 crore people visiting Ayodhya alone. These tourists spent more than 2 lakh crore rupees.

The state's economy received an extra ₹10,500 crore from foreign tourists, who ranked UP as the fifth most visited state in India. Thanks to increased tourists, UP stands to gain a lot financially.

A dollar-term Compound Annual Growth Rate (CAGR) of 8.4 percent is required to meet India’s lofty target of having a $5 trillion economy by FY28. As a result, in Indian Rupees, nominal GDP growth of 11.0-11.5 percent per annum is within reach. As India works towards this objective, UP is poised to take the front stage in this upward trend.

Rajendra Prasad Yadav, deputy director of tourism of the Ayodhya division, stated in his recent media interaction that the city's temples and other recreational spots are being renovated with a budget of one billion rupees ($12.05m) approved by the state government in the previous fiscal year to accommodate the anticipated surge of tourists. Since the Supreme Court's 2019 ruling, the number of tourists has been steadily climbing; 20 million people visited Ayodhya last year, and that figure is expected to quadruple this year.

Information gathered from official sources indicates that the city is home to 175 hotels of various sizes. Additionally, the state government has authorized 500 additional guest houses, each with a maximum of five rooms, which are anticipated to provide money for the residents.

Real Estate Developments Playing on Front Foot

It is not just the state of UP that is witnessing real estate infra developments in fact, the entire country is going through a massive transition owing to the construction of the Ram Temple. If you want to see the fast-paced nature of the city, look no further than the hotel business. One example is the development of two properties by the Indian Hotels Company Ltd (IHCL), the parent company of well-known hotel chains such as Vivanta and Taj Hotels. Ayodhya, the sacred birthplace of Lord Ram, is anticipated to receive substantial foot traffic from pilgrims all year round, therefore the company made a leap of faith, according to Suma Venkatesh, Executive Vice President-Real Estate & Development at IHCL.

Developers are in talks with diversified conglomerate ITC Ltd, a frontrunner in the luxury and mid-segment hotel industries, to provide branding and management services for their upcoming properties. There are other large-scale infrastructure development projects that the federal and state governments have announced besides hotels. The Ayodhya Master Plan 2031 calls for the implementation of infrastructure improvement projects in the town with a total estimated cost of Rs 85,000 crore. The government has unveiled a redesigned railway interchange and a brand-new international airport.

Prime Minister Narendra Modi recently visited the town and stated, Infrastructure-related works will once again establish modern Ayodhya with pride on the map of the country.

Air India Express and IndiGo have recently begun offering multiple flights to and from the temple town from key cities in India. The head of global sales at IndiGo, Vinay Malhotra informed the media that the new routes will greatly enhance travel, tourism, and trade in the area, which will lead to economic growth and give tourists easy access to Ayodhya. In reality, the Indian Railways are gearing up to run approximately fifteen additional trains between Ayodhya and important towns. Developers of residential and commercial real estate have also descended upon the town in quest of desirable parcels of property.

Opening Up New Employment Prospects

According to a well-known Indian news outlet, 20,000 new employment have been generated in the hotel, travel, and tourist industries in the lead-up to the highly anticipated 'Pran Pratishtha' ceremony at Ayodhya's Ram Mandir on January 22. Industry insiders predict a steady uptick in employment openings in the coming months, thanks to the daily flood of thousands of fans.

According to Yeshab Giri, Chief Commercial Officer at Randstad India, who spoke with an Indian media organization, 3–4 lakh visitors are expected to visit Ayodhya every day thanks to the Ram Mandir, turning it into a major tourist destination worldwide.

According to Balasubramanian A., VP of TeamLease, who spoke with the media, between 10,000 and 20,000 jobs in the service industry, including those for drivers, chefs, and hotel employees, were created in the past six months. There will be thousands of new positions in the hospitality industry, including managers, chefs, drivers, and logistics specialists, as the opening of the temple draws near. It is anticipated that this demand will extend beyond Ayodhya to adjacent cities such as Kanpur, Lucknow, and Gorakhpur. The daily traffic at the temple and the related requirement for staff will become more apparent in the coming three to four months, according to industry executives. According to experts, there will be a need for extra staff to handle the accommodation, logistical, and food needs of the estimated 2-3 lakh daily visitors to the Ayodhya shrine. More employment chances may arise at any time of year due to the normal ratio of labor demand in the hotel business. Although the majority of these positions are temporary, professionals in the field warn that demand and the actual number of worshippers attending the temple could cause changes.

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