Ram Mandir in Ayodhya and other tourism initiatives are expected to add an extra Rs 20,000-25,000 crores of tax revenue in Uttar Pradesh’s coffers, as per the latest SBI report.
The report was released on 21st January (Sunday). According to the report, the state will draw immense benefits from the Centre’s Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme.
According to its Budget, Uttar Pradesh’s tax revenue is expected to be around Rs 2.5 lakh crore in FY24.
As per the SBI report, tourist spending in the state will double this year as compared to 2022. As per the estimates, by the end of the year, the total expenditure by tourists in the state could surpass the Rs 4 lakh crore mark.
The report noted, “Given the completion of Ram Mandir in Ayodhya and initiatives taken by the UP government to promote tourism, we believe that the total expenditure by tourists in UP may cross the Rs 4 lakh crore mark by the end of this year.”
As per official data, in 2022, domestic tourists spent around Rs 2.2 lakh crore while foreign tourists spent another Rs 10,000 crore in the state. In the same year, Ayodhya recorded 2.21 crore tourists.
According to the estimates, Uttar Pradesh’s gross state domestic product (GSDP) for FY24 will be Rs 24.4 lakh crore ($298 billion).
The report noted that the rise in spiritual tourism has transformed the tourism landscape in UP. This has led to enhanced physical and digital infrastructure, improved connectivity, and a significant upswing in travel. The report commended the state’s initiatives on economic and socioeconomic fronts, projecting that Uttar Pradesh is poised to surpass the $500 billion mark as India reaches a $5 trillion economy by FY28.
As per the report, it is estimated that UP could have the second most weightage in Indian GDP by FY28. The state’s GSDP could overtake Norway, the Scandinavian country.
“UP will be one of the two states that will break the $500 billion mark in 2027 (or FY28) when India achieves the 3rd place in the global economy. The GDP size of major Indian states in 2027 will be more than that of some European countries like Norway,” the report said.
The SBI report recommended that the state government consider implementing a comprehensive travel plan. This plan aims to provide a curated experience highlighting the rich history of various significant locations within the state and neighboring regions, using a hub-and-spoke model. Additionally, the report suggested the potential for international collaborations to create an extensive tourist map.