India’s economic boost to come from tourism finds SBI Research, UP to take lead with Ram Temple
Uttar Pradesh is projected to hold the second-highest weightage in India's GDP by FY28, surpassing Norway, with growth opportunities in services, industry, agriculture, and exports, as well as infrastructural and investment initiatives.
The Centre's Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme, coupled with various state government initiatives is set to play a role in developing the spiritual travel industry in India, as per an SBI Research report released on January 21.
The impact on the Indian economy is expected to be significant. The report added that UP government initiatives along with the newly built Ram temple in Ayodhya could result in additional tax revenue of ₹25,000 per annum for the state in FY25 due to increased visitors.
Spiritual Tourism Poised to Boost the Economy
The surge in spiritual tourism has significantly transformed the tourism landscape in UP, the report added. It has resulted in an improved physical and digital infrastructure, facilitating accessible connectivity, and spurred a substantial increase in travel, encouraging people to engage more meaningfully with the historical sites.
UP, with its numerous holiest places and shrines, such as the Ganga River, Varanasi, the Taj Mahal and now the new Ram Temple in Ayodhya, has experienced a remarkable upswing in domestic tourism.
Also Read | Ayodhya Ram Mandir Pran Prathistha: Images of newly built temple released ahead of consecration ceremony
According to state government estimates, around 32 crore tourists visited the state in 2022, with an impressive footfall of 2.21 crore in Ayodhya alone. The total expenditure by these tourists exceeded ₹2 lakh crore.
Foreign tourists, ranking UP as the fifth most visited state in India, contributed an additional ₹10,500 crore to the state's economy. The tourism boom positions UP to reap substantial economic benefits.
India's ambitious goal of reaching a $5 trillion economy by FY28 necessitates a Compound Annual Growth Rate (CAGR) of 8.4 percent until 2027 in dollar terms. This translates to an achievable 11.0-11.5 percent nominal GDP growth per annum in Indian Rupees. As India strives to achieve this goal, UP is set to play a pivotal role in this growth trajectory.
Also Read | Uttar Pradesh investor base surpasses Gujarat to rank second with 89.47 lakh stock market investors
Uttar Pradesh emerges as one of the two states expected to surpass the $500 billion mark by 2027, marking a significant milestone as India ascends to the third position in the global economy. Projections indicate that UP, along with Maharashtra, will break the $500 billion threshold, collectively contributing 10 percent to India's GDP.
Uttar Pradesh is poised to surpass the economic output of European countries such as Norway and Hungary by 2027, reflecting the significant strides in India's global economic standing.
Uttar Pradesh's Economic Prospects
The Indian economy is set to reach $5 trillion by FY28, defying headwinds with a growth rate exceeding 7 percent. Uttar Pradesh (UP) emerges as a key player, projected to hold the second-highest weightage in the Indian GDP by FY28, surpassing Norway in GDP, as per the SBI Research report.
In FY23, UP contributed more than 10 percent to India's Gross Value Added (GVA), with services accounting for 11.7 percent; while its share in industry and agriculture exceeded 8 percent. This reflects growth opportunities amid infrastructural and investment initiatives for the state, as per the report.
In terms of exports too, UP has displayed visible strides achieving a 7.1 percent Compound Annual Growth Rate (CAGR) in FY2013-23, outpacing the national average of 4.1 percent. The state has doubled its export share nationally, securing the sixth position, it noted.
Placed second in the country in the Ease of Doing Business report of 2019, UP continues to attract investments. It has also doubled its installed power generation capacity between FY2014-22. The state's multifaceted progress thus indicates a promising trajectory in India's economic landscape.
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Business NewsEconomyIndia’s economic boost to come from tourism finds SBI Research, UP to take lead with Ram Temple
First Published:21 Jan 2024, 11:10 AM IST
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