Recently inaugurated Ram temple in Ayodhya could generate an additional Rs. 25,000 crore in state tax Income for FY25
According to SBI Research published on January 21, the Centre's Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) project, together with several state government initiatives, is expected to contribute to the growth of the spiritual travel industry in India.
It is anticipated that it will have a major effect on the Indian economy. The report went on to say that increased tourism, along with UP government initiatives and the recently constructed Ram temple in Ayodhya, might bring in an extra Rs. 25,000 crore in tax income for the state in FY25.
The research further stated that the rise in spiritual tourism has drastically changed the state of tourism in Uttar Pradesh. It has led to significant travel, which has encouraged people to interact more deeply with the historical sites, and improved physical and digital infrastructure, which makes connectivity more accessible.
UP Witnessed a notable surge in domestic travel
With so many sacred sites, including the Taj Mahal, Varanasi, the Ganga River, and the recently constructed Ram Temple in Ayodhya, Uttar Pradesh has seen a notable surge in domestic travel.
The state administration forecasts that 32 crore tourists came to the state in 2022, with 2.21 crore of those visitors coming to Ayodhya alone. These tourists spent more than Rs. 2 lakh crore in total.
UP contributed an additional Rs. 10,500 crore to the state's economy
UP, securing the fifth spot among the most frequented states by foreign tourists in India, contributed an extra Rs. 10,500 crore to the state's economy. This surge in tourism positions Uttar Pradesh to garner significant economic advantages.
In pursuit of India's ambitious target to achieve a $5 trillion economy by FY28, a compound annual growth rate (CAGR) of 8.4 percent is imperative until 2027 in dollar terms. This corresponds to an attainable 11.0–11.5% annual nominal GDP growth in Indian rupees. As India endeavors to realize this objective, Uttar Pradesh is poised to play a crucial role in this upward economic trajectory.
Uttar Pradesh is anticipated to be among the two states surpassing the $500 billion milestone by 2027, signifying a noteworthy achievement as India rises to the third position in the global economy. Forecasts suggest that Uttar Pradesh, in conjunction with Maharashtra, will exceed the $500 billion mark, jointly constituting 10 percent of India's GDP.
By 2027, Uttar Pradesh is expected to outpace the economic output of European nations like Norway and Hungary, underscoring the substantial progress in India's global economic standing.
By FY28, the Indian economy is expected to reach the $5 trillion mark
The Indian economy is poised to achieve a $5 trillion target by FY28, overcoming challenges with a growth rate surpassing 7 percent. Uttar Pradesh (UP) is positioned as a significant contributor, expected to have the second-highest share in the Indian GDP by FY28, surpassing Norway in terms of GDP, according to the SBI Research report.
In the fiscal year 2023, Uttar Pradesh (UP) contributed over 10 percent to India's Gross Value Added (GVA), with services constituting 11.7 percent and its involvement in industry and agriculture surpassing 8 percent. This underscores growth prospects driven by state-level infrastructure and investment initiatives, as outlined in the report.
UP has doubled its national export share, securing the sixth position
In terms of exports, UP has demonstrated significant advancements, achieving a Compound Annual Growth Rate (CAGR) of 7.1 percent from FY2013 to FY2023, surpassing the national average of 4.1 percent. The state has doubled its export share at the national level, securing the sixth position.
Ranked second in the country in the Ease of Doing Business report for 2019, UP continues to attract investments. Additionally, it has doubled its installed power generation capacity from FY2014 to FY2022. The state's diverse progress signals a promising trajectory within India's economic landscape
UP has surpassed Gujarat in terms of number of stock market investors
Also, the count of stock market investors in India has surpassed the 8 crore mark, reflecting a remarkable growth of 22.4% compared to the figure recorded on December 31, 2022, according to data from the National Stock Exchange (NSE). As of December 25, 2023, the total investor count reached 8.49 crore, up from 6.94 crore on December 31, 2022.
The data indicates a rise in the investor base from 7 crore to 8 crore within eight months. Maharashtra has 1.48 crore registered investors, making it the state with the most. With 89.47 lakh investors, Uttar Pradesh has surpassed Gujarat to take the second spot. The state had a 33.8% increase in new investors.
Also read: NITI Aayog: India’s poverty rates have significantly dropped in the last 9 years
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