The Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme, in conjunction with state initiatives, is anticipated to play a pivotal role in the development of India’s spiritual travel industry, according to an SBI Research report released on January 21.
The economic impact is projected to be substantial, with the report suggesting that Uttar Pradesh (UP) government initiatives, coupled with the newly constructed Ram temple in Ayodhya, could contribute an additional tax revenue of $300 million per annum for the state by FY25 due to an upsurge in visitors.
Spiritual tourism’s surge has notably transformed UP’s tourism landscape, resulting in enhanced physical and digital infrastructure, improved connectivity, and a significant uptick in travel, fostering more meaningful engagement with historical sites.
Uttar Pradesh is poised to surpass the $500 billion mark by 2027, becoming one of the two states expected to achieve this milestone. This marks a crucial juncture as India ascends to the third position in the global economy. Projections indicate that UP, alongside Maharashtra, will collectively contribute 10 percent to India’s GDP.
By 2027, Uttar Pradesh is expected to surpass the economic output of European countries like Norway and Hungary, reflecting India’s considerable strides in the global economic landscape.
The SBI Research report envisions the Indian economy reaching $5 trillion by FY28, defying challenges with a growth rate exceeding 7 percent. Uttar Pradesh emerges as a key player, projected to hold the second-highest weightage in Indian GDP by FY28, surpassing Norway. In FY23, UP contributed over 10 percent to India’s Gross Value Added (GVA), with services accounting for 11.7 percent, showcasing growth opportunities amid infrastructural and investment initiatives.
In terms of exports, UP has displayed commendable progress, achieving a 7.1 percent Compound Annual Growth Rate (CAGR) in FY2013-23, outpacing the national average of 4.1 percent. The state has increased its national export share, now holding the sixth rank.
Ranked second in the Ease of Doing Business report of 2019, UP continues to attract investments and has doubled its installed power generation capacity between FY2014-22. The multifaceted progress of the state indicates a promising trajectory in India’s economic landscape.
