India’s history is illustrious. At one time, it contributed over 25 percent to the world’s GDP and controlled about 28 percent of global trade and commerce. As an economic power for several centuries, India led in various fields such as art, culture, music, dance, food, festivals, architecture, and handicrafts. The contributions of Indian civilization to world heritage are immense. Unfortunately, history took a downturn, and for almost a millennium, foreign occupation stripped India of its glory and wealth.
There is a close connection between culture and the economy. Our economy significantly contributed to our glorious civilization and cultural heritage. Conversely, our rich cultural content also bolstered our strong economy. For India to regain a global leadership position, it must first become an economic power. Leveraging our cultural wealth can be a catalyst for India’s economic growth.
India’s potential in culture is vast, but there is a lack of understanding on how to utilize this accumulated cultural wealth for economic growth. To realize the true potential of India’s cultural heritage and identify variables for evidence-based decision-making and resource allocation, we need to explore multiple dimensions of the cultural economy. This includes performance and potential indicators, monetizing cultural activities, and fulfilling financial requirements through innovative instruments for sustainability. A study found that only about 20 percent of cultural organizations worldwide consider themselves financially sustainable.
The government plays a crucial role in any initiative, making cultural economic governance vital during policy formulation and implementation. Approximately 4.5 million people are employed directly in the cultural sector as artisans, performers, and tourism guides. Additionally, handicrafts and traditional art industries provide employment to about 6 million people. By introducing new curriculums and vocational studies, the government can enhance the skills and capacities of these stakeholders. According to the Ministry of Rural Development, only 10 percent of rural artisans have access to formal training programs. Capacity-building initiatives in cultural sectors could boost productivity and revenue for cultural enterprises by 20-30 percent. A UNESCO survey found that 70 percent of traditional artisans feel their skills do not meet current market demands.
Establishing social and economic linkages for performing arts can stimulate growth across all art forms, creating significant employment and revenue opportunities. The Indian film industry alone contributes around $22 billion annually to the economy, yet its global potential remains untapped. Yoga in the United States has become a $15 billion annual business. We need to find ways to ensure that the economic benefits of Yoga’s global acceptance flow back to India. Extensive work is required across these and other important sectors.
We can only utilize the cultural wealth inherited from our ancestors by taking pride in it. Fortunately, there is a resurgence of pride in our cultural traditions and civilizational values, driven by aspirational Indians. Initiatives like building the Ram temple in Ayodhya, with an ambitious redevelopment project costing over $10 billion to be completed by 2031, aim to transform the city to accommodate around 300,000 pilgrims daily. The Kashi Vishwanath Temple’s redevelopment increased daily visitors from 20,000-30,000 to 150,000-200,000. India has about 2 million temples that serve as commercial centers attracting tourists and supporting retail, transportation, and hospitality businesses. Festivals in India are estimated to contribute $24 billion annually. According to a CII report, the 2019 Kumbh Mela generated over $12 billion in business, with Uttar Pradesh spending only $506 million for the event.
Prime Minister Narendra Modi is furthering this vision by establishing Tamil Cultural Centers globally and showcasing India’s diverse cultural heritage to world leaders through the G20 platform. India currently has 42 UNESCO World Heritage Sites. Under the PRASHAD scheme, 46 new projects have been sanctioned and 27 new pilgrimage sites identified across India for infrastructure and tourist amenities development, enhancing the religious tourism experience. In India’s travel and tourism sector, spiritual and religious tourism constitutes 30 percent of the market and accounts for 60 percent of the domestic tourism market.
Developing a comprehensive Cultural Economic Model is essential to catalyze our nation’s economic growth and achieve developed nation status by 2047. This model can also serve as a case study for other economies, helping them propel their own growth using their social and cultural wealth.
