The inauguration of the Ram temple in Ayodhya by Prime Minister Narendra Modi is expected to give a significant boost to the Indian economy, transforming the region into a prominent tourist destination. Jefferies predicts that the temple could attract over 50 million tourists annually, creating a robust economic impact.
The allocation of $10 billion towards the enhancement of infrastructure, which includes the construction of a new airport, renovation of a railway station, development of a township, improvement of road connectivity, and other related projects, is poised to yield a multiplier effect.
According to Jefferies' recent report, these developments are expected to catalyze supplementary economic activities, particularly the establishment of new hotels, fueling growth in the tourism sector through infrastructure development.
Presently, India's tourism-to-GDP ratio stands at 6.8 per cent, positioning the country below many of the major emerging and developed economies.
Prior to the pandemic in FY19, the tourism sector made a contribution of $194 billion to the GDP. Projections now indicate an anticipated CAGR of 8 per cent, leading to a surge in the sector's GDP contribution to $443 billion by FY33.
Annually, India generates a substantial income from religious tourism, with earnings surpassing Rs 1.34 lakh crore in 2022, reflecting a remarkable 106 per cent increase compared to the figures recorded in 2021. According to tourism data from the Uttar Pradesh government, Ayodhya welcomed more than 23 million tourists in 2022, and this number is expected to reach new heights following the completion of the construction of the Ram Mandir.