Updated January 28th, 2024 at 14:04 IST
UP Tourism: Ram Temple & Prashad Scheme Projected to Earn the State $50B by End of FY24
Uttar Pradesh anticipates a tourism windfall, with the inauguration of the Ram temple and Prashad initiative.
Lucknow: Uttar Pradesh (UP) is set to become a major hub for tourism, with an expected surge in earnings by the end of 2024. The inauguration of the Ram temple in Ayodhya and the implementation of the Prashad initiative by the Centre, aimed at fostering religious tourism, are anticipated to contribute to this boom.
UP Projected to Earn 50 Billion Dollars
According to estimates, Uttar Pradesh is projected to receive over Rs 4 lakh crore from tourists by the end of 2024, nearly doubling the earnings recorded in 2022. Prime Minister Narendra Modi has also underlined the role of UP in the development of a developed India, stating that rapid progress in the state is indispensable for the overall progress of the nation.
The state has witnessed a notable increase in spiritual tourism, transforming its tourism potential. Improved physical and digital infrastructure has enhanced connectivity, making it accessible to a broader audience. A study by the Economic Research Department of the State Bank of India revealed that UP led the states in domestic tourist visits in 2022, ranking fifth for foreign tourists.
Ayodhya Attracts over 2 Crore tourists
In 2022, UP attracted 32 crore tourists, with Ayodhya alone accounting for 2.21 crore footfalls. Domestic tourists spent over Rs 2 lakh crore, and foreign tourists contributed around Rs 10,500 crore to the state's economy. These figures are expected to nearly double by the end of 2024, potentially leading to an additional tax revenue of Rs 20,000-25,000 crore for the state government in the fiscal year 2025, as per the SBI report.
The Prashad scheme, focusing on Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive, played a pivotal role in developing spiritual travel. The scheme facilitated the enhancement of infrastructure and knowledge dissemination in tier III and tier IV cities, contributing to the significant growth in the travel and hospitality sector.
Looking ahead, the report suggests that India can create a tourism map seamlessly connecting domestic historical places with international destinations like Angkor Wat, Sri Lanka, Batu Caves, Pashupatinath, and Prambanan.
Apart from boosting religious tourism, UP has also made substantial progress in the agriculture, industry, and service sectors. With over 10 percent contribution to India's Gross Value Added, UP's share in services reached 11.7percent in FY23, while its shares in industry and agriculture were above 8 percent. The state is poised to have the second-most weightage in India's GDP by FY28, reaching 10 percent, according to the report.
Uttar Pradesh’s Contribution to India’s GDP
In the fiscal year 2022-23, UP accounted for 8.2 percent of India's GDP, and this is expected to increase to 10 percent by FY 2028. Maharashtra is projected to top the list at 13 percent. UP is estimated to have an economy of around $515 billion, making it one of the two states set to break the $ 500-billion mark in FY28 as India aims for the third position in the global economy.
Furthermore, UP has shown progress on the export front, achieving a Compound Annual Growth Rate (CAGR) of 7.1 percent between FY 2013-23, doubling its export share nationally and ranking sixth among states. The state has been actively contributing to wealth creation through capital markets, attracting a substantial number of new investors from FY20-24, with a share exceeding 10 percent, as per bourses/depositories data, as highlighted in the SBI report.
Published January 28th, 2024 at 13:37 IST