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Maha Kumbh’s Economic Ripple: Rs 25,000 Crore Revenue Boost

Even as lakhs of devotees had braved the bitter cold to take the holy dip in the Sangam as the Maha Kumbh, the world’s largest religious gathering, kicked off on January 13, 2025… the sheer size and scale of the Maha event is not only expected to attract nearly 40- 45 crore people over a span of 45 days, but have a maha impact on the GDP of the country.

According to various estimates, Maha Kumbh’s budget stands at nearly Rs 6,382 crore and the event is expected to generate Rs 25,000 crore in revenue for the state.

BOOST TO ECONOMY

The Maha Kumbh has till now and will have a massive impact on the economic opportunity for various sectors, such as hospitality, transportation, tourism and retail and the UP government is leaving no stone unturned in promoting the mega religious gathering and in return expecting it to be a boost to the spiritual and religious tourism which the country is already riding and thereby become a source of earning for millions.

The local economy is expected to significantly benefit from the religious congregation, with financial transactions ranging anything between Rs 2 lakh crore and Rs 3 lakh crore.

The earnings of smallscale vendors, such as tempo operators, rickshaw pullers, flower sellers at temple sites, those selling memorabilia, boat operators, and even hotels, will contribute significantly to the local economy.

It may be recalled that In December 2024, Prime Minister Narendra Modi had launched development projects worth around Rs 5,500 crore in Prayagraj to improve the infrastructural template.

As per the Uttar Pradesh Tourism Department, the preparation for the religious festival had already generated employment opportunities for more than 45,000 families.

The state government is also utilising the occasion to promote the image of “Brand UP”. India Inc is reportedly set to spend at least Rs 3,000 crore on branding and marketing during the 45-day Maha Kumbh.

As per data from Confederation of All India Traders (CAIT), with approximately 80% visitors spending even Rs 5,000 each, the Mela is set to become a major economically driven catalyst for Uttar Pradesh with a trajectory to earn around Rs 2 lakh crore in revenue.

SECTORS THAT WILL DIRECTLY BENEFIT

Even as millions of pilgrims will attend the event of the century, certain industries and companies stand to gain immensely. Let’s focus on the key sectors…

. Tourism & Hospitality: Hotels, guest houses, and local retail businesses catering to the needs of these visitors will experience heightened demand.

. Telecommunication & Retail: The telecommunication sector is likely to see an increase in data and voice usage as millions of pilgrims connect.

. Transportation: Companies in the business of aviation, rail, and road travel sectors are set to profit from increased ticket sales and services. Indian Railways and the civil aviation sector will reap a harvest.

. Consumer Goods & FMCG: Increased demand for packaged food, hygiene products, and dailyuse essentials is expected.

. Infrastructure Development: Massive investments in infrastructure, including roads, bridges, sanitation, and public utilities, will not only benefit the local economy but also provide opportunities for infrastructure and construction companies.

. Technology & Security: Ensuring the safety and smooth management of the crowds at Mahakumbh requires significant investment in technology and surveillance.

. Platforms like Google Pay and Paytm will see a boost in their transactions.

. The growing trend of online food delivery will play a crucial role in ensuring that pilgrims are wellfed during the event, especially those staying in temporary accommodations.

The event’s estimated budget for management and infrastructure development is `6,382 crore ($800 million), a significant 72% increase compared to the 2019 Kumbh budget.

With approximately 80% of the anticipated 40–45 crore devotees expected to spend between Rs 6,000–8,000 each as per Confederation of All India Traders (CAIT), the Kumbh Mela is poised to generate financial transactions totalling Rs 2–2.5 lakh crore ($25–30 billion) over 45 days. This amount is equivalent to an estimated 0.8% of the country’s GDP.

TRANSPORTATION & HELICOPTER SERVICE

For the first time, a helicopter service has been initiated to offer pilgrims a breathtaking aerial tour of the Maha Kumbh area. With each trip priced at Rs 5,000 per devotee, the service is projected to ferry around 7,000 visitors daily. Over 45 days, the helicopter service alone is estimated to generate revenue exceeding Rs 157 crore, averaging Rs 3.5 crore per day. Overall transportation services are expected to generate revenue to the tune of Rs 10,000 crore.

. Retail Sector: The Mahakumbh is a lifeline for local businesses, transforming the region into an economic engine fuelled by millions of visitors. It provides unparalleled opportunities for artisans, street vendors, and small shop owners to thrive. For first-time visitors navigating this massive gathering, having access to timely information and assistance is crucial. India Assist-enabled Tourist Information Centres aim to empower travellers, helping them confidently explore markets, discover hidden gems, and connect with local craftspeople.

The Maha Kumbh Mela 2025 in Prayagraj, expected to host over 400 million pilgrims, presents immense opportunities for the retail and hospitality sectors. With Mahakumbh Nagar offering thousands of temporary shelters, the hotel industry is expanding through online platforms and dynamic pricing. Local residents are contributing with paying guest accommodations, while training programs for guides and drivers ensure enhanced service quality.

Also, the Mahakumbh is a lot more than a spiritual event. It’s a lifeline for numerous local businesses. For small artisans, handicraft makers, and souvenir sellers, the influx of millions of tourists is a golden opportunity to showcase their work on a massive scale. Businesses should intend to create long-term visibility for these crafts.

The Uttar Pradesh government’s initiatives, including the construction of a luxury tent city and the introduction of paying guest schemes involving over 2,000 homes, aim to alleviate accommodation challenges.

. Local Businesses: The Mahakumbh also provides a platform for small and medium enterprises (SMEs). With over 50,000 SMEs expected to contribute, local vendors and artisans are poised for unprecedented growth.

According to media reports, the event is expected to boost both nominal and real GDP by over 1 per cent.

THE VIEWS EXPRESSED BY THE AUTHOR ARE PERSONAL

Robin Roy, The writer is Senior Journalist and former Managing Editor, First India

 

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Daily Astro

15-02-2025

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Libra

Harmony in relationships is your priority. Compromise and understanding will strengthen your bonds.

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Virgo

Focus on organization and details. A well-planned day will lead to productive results and personal satisfaction.

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Leo

Leadership will come naturally. Take charge of situations but remain humble for the best outcomes.

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Cancer

Emotional balance is key today. Spend quality time with loved ones to find comfort and clarity.

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Gemini

Today is perfect for networking and sharing ideas. Your adaptability will help you tackle unexpected changes with ease.

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Taurus

Patience will be your strength today. Financial matters might need attention, so think twice before making big decisions.

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Aries

Today brings opportunities for growth, but you'll need to stay focused. Trust your instincts to navigate challenges.

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Pisces

Your intuition will guide you. Trust your feelings and explore creative outlets for peace of mind.

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Aquarius

Innovation is your theme today. Explore unconventional ideas to solve lingering problems.

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Capricorn

Hard work pays off today. Your dedication and discipline will lead to well-deserved recognition.

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Sagittarius

Adventure is calling! Embrace new opportunities, but keep a balanced approach to risks.

image

Scorpio

Your determination will be unmatched. Dive deep into tasks, but don't forget to take breaks to recharge.

image

Libra

Harmony in relationships is your priority. Compromise and understanding will strengthen your bonds.

image

Virgo

Focus on organization and details. A well-planned day will lead to productive results and personal satisfaction.

image

Leo

Leadership will come naturally. Take charge of situations but remain humble for the best outcomes.

image

Cancer

Emotional balance is key today. Spend quality time with loved ones to find comfort and clarity.

image

Gemini

Today is perfect for networking and sharing ideas. Your adaptability will help you tackle unexpected changes with ease.

image

Taurus

Patience will be your strength today. Financial matters might need attention, so think twice before making big decisions.

image

Aries

Today brings opportunities for growth, but you'll need to stay focused. Trust your instincts to navigate challenges.

image

Pisces

Your intuition will guide you. Trust your feelings and explore creative outlets for peace of mind.

image

Aquarius

Innovation is your theme today. Explore unconventional ideas to solve lingering problems.

image

Capricorn

Hard work pays off today. Your dedication and discipline will lead to well-deserved recognition.

image

Sagittarius

Adventure is calling! Embrace new opportunities, but keep a balanced approach to risks.

image

Scorpio

Your determination will be unmatched. Dive deep into tasks, but don't forget to take breaks to recharge.