Uttar Pradesh Eyes Mahakumbh GDP Growth & GST Boost
A Sadhu at Mahakumbh Image credit UP Info Dept
UP Govt Claims Experts’ Assessment of 1% GDP Growth
By S Jha
Prayagraj, January 18: Mahakumbh 2025 in Prayagraj is poised to create a significant cultural, social, and economic impact, said the Uttar Pradesh government on Saturday.
Chief Minister Yogi Adityanath recently highlighted its potential to generate ₹2 lakh crore in business, with experts predicting a 1% boost to Uttar Pradesh’s GDP and a substantial rise in GST collections during the 45-day mega event.
“The spending by millions of devotees from across the globe is expected to enhance demand, leading to increased production, job creation, and greater financial flow for small and large businesses alike,” said the UP govt in a media statement.
It stated that the “substantial revenue generated for the government will be reinvested in the state’s infrastructure, further accelerating development. Overall, Mahakumbh 2025 is set to be a pivotal step toward achieving Chief Minister Yogi Adityanath’s vision of making Uttar Pradesh a one trillion-dollar economy”.
The UP government quoted economist Pankaj Gandhi Jaiswal, saying: “The Mahakumbh 2025 has the potential to boost both nominal and real GDP figures by up to 1%. The Uttar Pradesh government estimates that approximately 45 crore people, both domestic and international, will attend this year’s Mahakumbh.”
It also stated that “many of these visitors will also travel to prominent destinations like Kashi, Ayodhya, and Chitrakoot. Factoring in the average per capita expenditure, including travel, stay, and other costs, the spending is projected to be around ₹10,000 per person.:
“When multiplied by 45 crore visitors, the total economic activity generated could amount to a staggering ₹4.5 lakh crore. Even with a conservative estimate accounting for a 10% margin of error, the economic contribution would still exceed ₹4 lakh crore, making it a remarkable boost for the economy,” added the UP govt in the statement.
It also stated that “financial infusion will not only strengthen quarterly GDP figures but also contribute significantly to the country’s annual national GDP, reinforcing the overall economic momentum.”
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The UP govt quoted Jaiswal, saying: “The government’s investment in Mahakumbh 2025 will yield returns many times over. The double-engine government is allocating approximately ₹16,000 crore to organize the grand event. Based on current projections, this investment is set to generate significant revenue for the government.”
“For instance, calculating the average GST collection on the estimated ₹4 lakh crore economic activity results in a potential revenue of ₹50,000 crore. Adding income tax and other indirect taxes on the earnings generated from this expenditure, the figure could rise to ₹1 lakh crore, demonstrating the multiplier effect of the government’s investment,” added the state government.
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