While global investors keep a close watch on volatile equity markets, India is experiencing a different kind of surge. The Mahakumbh Mela in Prayagraj is drawing hundreds of millions to the sacred Sangam, not for financial gains, but for spiritual moksha. Yet, this immense gathering is also set to unleash a significant economic wave across Uttar Pradesh and the nation. In a world often swayed by market sentiments, India’s faith-based economy is quietly demonstrating its robust potential.

Pilgrimage Powers Growth

India’s tourism sector is a formidable economic engine, contributing a substantial 9.2 per cent to the GDP and providing over 42 million jobs in 2023, as per a KPMG report. Religious tourism constitutes nearly 60 per cent of this, and it is growing. Pre-pandemic, pilgrimage sites attracted 1.43 billion domestic tourists in 2022 alone. Post-pandemic resurgence is strong, with Vaishno Devi Temple seeing daily pilgrim numbers more than double and Kerala’s Guruvayur Temple also experiencing a significant rise in visitors. Ayodhya now welcomes 1-1.5 lakh visitors daily. The renovation success at Varanasi’s Kailash Vishwanath Temple, which saw visitor numbers jump to 71.6 million in 2022 and an estimated 130 million in 2023, is inspiring similar projects at other religious sites.

Kumbh’s Colossal Economic Impact

The sheer scale of the Mahakumbh is staggering. Anticipating over 400 million visitors, it is projected to generate business opportunities worth Rs 3 lakh crore. This event is not just a spiritual phenomenon but a massive economic catalyst, expected to create sustainable livelihoods for around 45,000 families. Local vendors, transport services, hospitality, and religious merchandise sectors are all geared for substantial gains. Uttar Pradesh’s Tourism Policy-2022 aims to capitalise on this potential, seeking Rs 20,000 crore in investments and one million job creations.

Beyond Market Volatility

While US equities enjoyed a strong run in 2024, delivering returns exceeding 25 per cent for the second year running, concerns about elevated valuations and retail sentiment are surfacing. Emerging markets, including India, have lagged behind in equity performance. Yet, the consistent growth of India’s religious tourism sector offers a different perspective on economic resilience. Unlike economies heavily reliant on market speculation, India’s spiritual economy provides a stable and expanding base, projected to employ over one hundred million people by 2030 and reach a value of $59 billion by 2028.

Is India’s spiritual economy an underappreciated asset? While global markets grapple with uncertainty, the unwavering faith and traditions driving religious tourism present a compelling narrative of sustained economic activity and growth for India.

Image Courtesy: X (UP Govt)