Ram Mandir inauguration spurs unprecedented economic boom in Ayodhya

Anticipated religious tourism surge triggers massive infrastructural developments and investments

In the lead-up to the much-awaited ‘pran pratishtha’ ceremony of the Ram Lalla idol at the Ram Mandir in Ayodhya on January 22, the city has witnessed a remarkable transformation, becoming a focal point for investors and a potential powerhouse for religious tourism.

As per recent reports, the construction of the Ram Mandir, with an estimated cost of ₹1,800 crore, is not only a significant religious project but is also expected to be a major catalyst for the economic rejuvenation of Ayodhya. The city, adorned with the newly inaugurated Maharishi Valmiki Airport and revamped railway station, is gearing up to welcome over 100,000 visitors daily, according to official estimates.

In preparation for the expected surge in tourism, the state government has laid out a comprehensive Master Plan 2031, requiring an investment of over ₹85,000 crore to facilitate the further development of the city’s infrastructure. The hospitality sector in Ayodhya has seen a remarkable boom, with major hotel brands investing in approximately 50 large-scale hotel projects. This surge in investments was highlighted during the Global Investment Summit, where 102 intent agreements, totalling around ₹18,000 crore, were signed for tourism in Ayodhya.

The allure of Ayodhya for investors extends beyond the hotel industry, with the aviation sector also seizing the opportunity. From renowned brands like Taj to Radisson, upscale hotels are making their mark in the city, marking a significant shift in Ayodhya’s position in the tourism sector.

Religious tourism has been a lucrative source of revenue for India. In 2022, the country witnessed a substantial influx of tourists, with 1433.92 million domestic visits and 6.40 million visits from international tourists. Ayodhya, renowned for its historical and religious significance, is poised for a surge in tourist numbers, particularly following the completion of the Ram Mandir ceremony.

The impact of the Ram temple on Ayodhya’s economy is already evident. The increased influx of tourists has generated new job opportunities for locals, and businesses are flourishing near the temple, offering a variety of native handicrafts. 

As Ayodhya undergoes a comprehensive beautification drive, with the UP government undertaking 187 projects with a budget of ₹30,570 crore, the city is poised to become a thriving hub for both religious and economic activities. The construction of the Ram Temple is not just a testament to India’s rich cultural heritage but also a beacon for prosperity in Ayodhya.