The recent inauguration of the grand Ram Mandir temple in Ayodhya by Prime Minister Modi is set to spur major economic growth by transforming the ancient holy city into a global tourist destination. According to financial services firm Jefferies, the temple could attract over 50 million tourists annually.
The $225 million temple is part of a $10 billion infrastructure (Rs 84,000 crore) overhaul to upgrade transport links and build new hotels and facilities. This includes the newly operational $175 million Phase 1 of Ayodhya airport to handle 1 million passengers, upgrade of the railway station capacity to 60,000 daily passengers, and a planned 1,200-acre township with improved road connectivity.
We have already reported that Rs 1 lakh crore business will be generated in Ayodhya.
Prior to the pandemic, tourism contributed $194 billion to India’s FY19 GDP, with expectations to grow 8% annually to $443 billion by FY2033. Currently at 6.8% of GDP, India lags other major economies by 3-5 percentage points in tourism share.
Ayodhya: Spiritual Tourism
The makeover is set to establish Ayodhya as a premier global religious tourism destination. With increased economic migration, sectors like hotels, airlines, hospitality, FMCG, cement, and travel ancillaries stand to hugely benefit in the city.
India’s recent G20 presidency also provided a platform to promote tourism with thousands of delegates visiting various parts of the country. In 2022, India ranked 7th most beautiful country globally by Forbes.
With 42 UNESCO World Heritage sites, India ranks 6th globally in this measure. The country is also one of just three with both hot and cold desert areas.
The rich history and spirituality of Ayodhya hold special meaning for millions of Hindus as the birthplace of revered deity Lord Ram. The city has drawn religious pilgrims for centuries. The grand new temple and redevelopment will significantly elevate Ayodhya’s facilities and transform its ability to receive major volumes of tourists and pilgrims from India and beyond.
The economic impact is set to be immense, fitting for a holy site of such cultural importance. As one of the fastest growing tourism economies, these efforts will bolster India’s position as an attractive destination for religious and leisure travel.
