New Delhi: Today is an auspicious day marking the arrival of Bhagwan Sri Ram in Ayodhya, the economic landscape in Uttar Pradesh is experiencing a significant transformation. Projections indicate that Uttar Pradesh is poised to hold the second-highest weightage in India’s GDP by FY28, surpassing even Norway. This historic moment waited for 500 years and is expected to bring blessings, happiness, and prosperity, particularly to the people of Ayodhya.
The construction of the Ram Mandir has sparked a newfound interest from businesses, turning Ayodhya into an attractive destination for investments. Private enterprises and government entities alike are converging in the town on the banks of the Sarayu River, fostering a surge in economic activity. Industries ranging from real estate development to hospitality and aviation are investing in Ayodhya, a town that was not prominently on their radar until recently.
For instance, the Indian Hotels Company Ltd (IHCL), renowned for brands like Taj Hotels and Vivanta, is establishing two properties in Ayodhya—a 100-room Vivanta hotel and a 120-room Ginger hotel. Suma Venkatesh, Executive Vice President of Real Estate & Development at IHCL, emphasizes the company’s commitment, citing Ayodhya’s expected attraction of significant pilgrim footfall throughout the year.
ITC Ltd, a diversified conglomerate and a key player in luxury and mid-segment hotels, is engaging in discussions with developers to provide branding and management solutions for their upcoming assets. Anil Chadha, Divisional Chief Executive at ITC Hotels, applauds the rapid infrastructure growth as a catalyst for the anticipated tourism surge in Ayodhya.
State government estimates reveal that in 2022, approximately 32 crore tourists visited Uttar Pradesh, with an impressive 2.21 crore visiting Ayodhya alone. The total expenditure by these tourists exceeded ₹2 lakh crore. The influx of foreign tourists, ranking UP as India’s fifth most visited state, contributed an additional ₹10,500 crore to the state’s economy, positioning Uttar Pradesh to reap substantial economic benefits from the tourism boom.
In line with India’s ambitious goal of achieving a $5 trillion economy by FY28, a Compound Annual Growth Rate (CAGR) of 8.4 percent until 2027 is deemed necessary in dollar terms. This translates to an achievable 11.0-11.5 percent nominal GDP growth per annum in Indian Rupees. Uttar Pradesh is poised to play a pivotal role in this growth trajectory as the economic landscape undergoes a significant shift spurred by the construction of the Ram Mandir.
