Chief Economic Advisor V Anantha Nageswaran, on Friday, highlighted the role Maha Kumbh Mela in improving the nation’s economic performance, stating that the event will help in achieving the 6.5% GDP growth target for FY25.
“Hard to put a number to it but Kumbh Mela will offer a significant boost to consumption expenditure in the March quarter,” said the CEA, emphasising the impact of this mega event on the country’s economic growth.
The world’s largest religious congregation, which attracted crores of devotees from across the world, is expected to make a substantial contribution to India’s GDP, helping achieve the projected 6.5% growth target for the FY25.
Nageswaran’s remarks came even as government data revealed that India’s GDP growth accelerated to 6.2% in Q3 of FY25, up from the previously revised 5.6%, driven by increased rural consumption and higher government spending, according an Economic Times report.
The Maha Kumbh Mela had a budget of about ₹12,670 crore, with an initial estimate of 40 crore visitors. However, the event far surpassed expectations, welcoming a staggering 65 crore devotees by the time the 45-day event came to an end on February 26.
Uttar Pradesh Chief Minister Yogi Adityanath has been vocal about the immense financial benefits the Maha Kumbh Mela will bring to the state. The Chief Minister estimated that the Maha Kumbh Mela will add more than ₹3 lakh crore to the economy of the state.
Economic impact in Varanasi, Ayodhya
The economic impact of the Maha Kumbh Mela extended far beyond Prayagraj, reaching cities like Varanasi, Ayodhya and neighboring towns. Local businesses across a variety of sectors, including hospitality, food, transport, logistics and religious supplies, saw a surge in activity. Industries such as textiles, healthcare, wellness services and even technology saw increased economic activity in the region.
UP government’s infra investments yield returns
The Uttar Pradesh government’s investment in infrastructure ahead of the Maha Kumbh Mela was substantial, with ₹5,400 crore allocated by the state government and ₹2,100 crore from the Centre. A total of ₹7,500 crore was earmarked for development projects, including roads, flyovers and underpasses in Prayagraj to accommodate the massive congregation, according to the government data.
This not only improved infrastructure in Prayagraj but also benefited surrounding districts and towns, further contributing to the region’s economic growth.
