The construction of the Ram Mandir in Ayodhya has not only held immense cultural and religious significance for India but has also sparked discussions about its potential impact on the country's economy. The impact of the Ram Mandir on the Indian economy is a complex and multi-dimensional phenomenon. The construction and subsequent developments related to the Ram Mandir in Ayodhya have far-reaching consequences across various sectors. Let's discuss in detail how Ram Mandir is expected to influence the Indian economy:
1. Tourism and Hospitality
One of the primary expectations from the construction of Ram Mandir is a surge in religious tourism. Pilgrims from across the country and around the world are likely to visit not only Ayodhya, but also other religious and historical sites in the vicinity, leading to a substantial increase in the overall tourist footfall in Ayodhya. The higher tourist footfall is expected to stimulate economic activities in Ayodhya and the surrounding regions. Local businesses, including hotels, restaurants, and souvenir shops, are likely to experience increased demand.The expected surge in pilgrims and tourists may lead to the development of new hotels, guesthouses, and accommodation facilities in Ayodhya. As per the reports of SBI research it is claimed that owing to Ram Mandir and other tourism-centric initiatives, According to the Confederation of All India Traders (CAIT), the consecration ceremony alone generated business worth more than INR 100,000 crore across India. The SBI Research claims that owing to the Ram temple, the state of Uttar Pradesh could see tax collections of as much as Rs 5,000 crore in 2024-25.
2. Transportation Sector
The construction of the Ram Mandir is expected to have a notable impact on the transportation sector in India, encompassing various modes of transportation such as airways, railways, and roadways. The completion of the Ram Mandir is expected to attract a significant number of religious tourists, thereby increasing demand for railways and airways connectivity. The higher the demand for railways and airways, more will be the revenue for Railways and Airways sector (including airport authorities).Not only, the railways and airways sector will get benefitted from this, but also the roadways sector will generate more revenues, as the demand for local transportations such as buses, taxis, e-rickshaws will immensely increase, thereby generating more economic benefit to the country.
3. Infrastructure Development
The construction of the Ram Mandir necessitates significant infrastructural developments in Ayodhya. Improved roads, transportation facilities, accommodation facilities and other amenities are expected to follow, not only catering to the needs of pilgrims but also enhancing the overall infrastructure of the region. This infrastructural upgrade can have a ripple effect on various sectors, promoting economic development.Improved connectivity and upgraded facilities could attract further investments, spurring economic activities beyond the immediate vicinity of the temple.
4. Employment Opportunities
The temple construction in itself is a massive undertaking that requires a substantial workforce. This presents an opportunity for job creation, employing skilled and unskilled labor, architects, engineers, and various other professionals. Additionally, the associated economic activities stemming from the temple's presence could generate employment in sectors such as retail, hospitality, and transportation. Therefore as per reports it is expecting that Ram Mandir will generate around 3 lakh Jobs in coming 4-5 years which will have a great impact on the Indian economy.
5. Local Business and Economy
Local businesses, including those in retail, food, and handicrafts, are expected to benefit from the increased footfall in Ayodhya. Entrepreneurs may witness a surge in demand for souvenirs, religious artifacts, and traditional crafts. The overall economic landscape of the town could experience a positive shift as small businesses flourish due to the temple-related activities.
6. 4 Stocks that saw a major rise from Ram Mandir Inauguration
The recent consecration ceremony of the Ayodhya Ram Mandir has not only been a monumental event for the nation but has also led to a significant boost in the stock prices of certain companies. Here are four stocks that have experienced a notable rise in share prices due to their connections to business and tourism in Ayodhya:
A. Allied Digital Services
Share prices have surged over 41% from October 2023 to January 2024. The rally began after the company secured the contract for the Ayodhya Smart City Project, aligning with the upcoming Ram Mandir ceremony.
B. Thomas Cook India
Witnessing a spike of 35% in share prices since October, Thomas Cook India capitalised on the event by offering budget travel packages to Ayodhya ahead of the consecration ceremony.
C. Easy Trip Planners
Early in announcing travel packages for Ayodhya, Easy Trip Planners witnessed a share price rally of over 20% since October 2023.
D. InterGlobe Aviation
With an increase in holdings in IndiGo Airlines and the announcement of commercial flights to Ayodhya, InterGlobe Aviation experienced a stock spike of over 27%.
7. Ram Mandir Funding: Progress and Contributions
The construction of the Ram Mandir in Ayodhya, estimated to cost Rs 1,800 crore, is managed by the Shri Ram Janmabhoomi Teerth Kshetra Trust, created by the BJP-led Central government in February 2020. The trust collects funds from pilgrims, individuals, and organizations nationwide. In October of the previous year, the Central government allowed the trust to receive funds from abroad. As of January 19, 2024, the trust has gathered over Rs. 3500 Crore in donations. The funding primarily comes from people and organisations supporting the cultural and religious significance of the temple. This will help in channelization of money into economy without state or central govt. direct support in form of funds received i.e. Taxpayer funds.
In conclusion, the impact of the Ram Mandir on the Indian economy is multifaceted, encompassing tourism, infrastructure development, employment generation, and stimulates local businesses. While the immediate economic gains are evident, the long-term effects are also crucial to consider. As the construction and subsequent developments unfold, monitoring and analyzing the economic impact will be essential to fully understand the significance of the Ram Mandir on India's economic trajectory. The temple also brings multifold benefits for UP like crossing Rs 4 lakh crore mark in state's tourism by the year end and bolstering its finances by Rs 20,000-25,000 cr in tax revenue.
CAclubindia
