A recently released State Bank of India (SBI) report anticipates a substantial increase of Rs 20,000-25,000 crores in Uttar Pradesh’s tax revenue, attributing the surge to the completion of the Ram Mandir in Ayodhya and various tourism initiatives. The report, unveiled on January 21, underscores the state’s potential gains from the Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme initiated by the central government.
Uttar Pradesh’s projected tax revenue for the fiscal year 2024 is approximately Rs 2.5 lakh crore, according to the state’s budgetary estimates. The SBI report predicts a twofold increase in tourist spending this year compared to 2022, with an estimated total expenditure by tourists in the state surpassing Rs 4 lakh crore by the year-end.
The report highlights the completion of the Ram Mandir and the Uttar Pradesh government’s proactive measures to promote tourism as key drivers for this surge. In 2022, domestic tourists spent around Rs 2.2 lakh crore, while foreign tourists contributed an additional Rs 10,000 crore to the state’s economy. Ayodhya alone witnessed 2.21 crore tourists during the same year.
Estimating Uttar Pradesh’s gross state domestic product (GSDP) for FY24 at Rs 24.4 lakh crore ($298 billion), the report emphasizes the transformative impact of spiritual tourism on the state’s tourism landscape. This transformation has led to improved physical and digital infrastructure, enhanced connectivity, and a notable upswing in travel.
The SBI report lauds the state’s initiatives on economic and socioeconomic fronts, projecting Uttar Pradesh to exceed the $500 billion mark as India aims for a $5 trillion economy by FY28. The report suggests that by FY28, UP could have the second-highest weightage in Indian GDP, surpassing countries like Norway.
The report recommends that the Uttar Pradesh government consider implementing a comprehensive travel plan. This plan, based on a hub-and-spoke model, aims to offer curated experiences highlighting the rich history of significant locations within the state and neighboring regions. Additionally, the report suggests exploring international collaborations to develop an extensive tourist map for the state.
