The SBI Research report, published on January 21, projects that the cumulative annual spending by both domestic and international tourists in Uttar Pradesh could surpass Rs 4 lakh crore by the close of 2025. This surge is anticipated to generate additional tax revenue ranging from Rs 20,000 to Rs 25,000 crore in FY25. The report attributes this optimistic outlook to the completion of the Ram Mandir in Ayodhya and various proactive measures implemented by the state government to boost tourism.
Uttar Pradesh, adorned with numerous holy sites and places of worship, has witnessed a remarkable upswing in domestic tourism, with an estimated 32 crore tourists expected to visit the state in 2022. The report highlights that the state government’s projections indicate a substantial expenditure of over Rs 2 lakh crore by these tourists, with Ayodhya alone witnessing around 2.21 crore footfalls.
In the years preceding the pandemic, India’s share in international tourism receipts was modest at 2.06 percent. However, the report acknowledges the transformative impact of the central government’s PRASHAD (Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive) scheme, which, in collaboration with states, has been instrumental in advancing spiritual travel. This initiative has created a conducive environment by enhancing infrastructure and disseminating knowledge, even in Tier III and IV cities. Consequently, the travel and hospitality sector is gearing up for a significant transformation to cater to previously underserved areas.
The report expresses confidence in Uttar Pradesh’s economic potential, aligning with India’s broader goal of becoming a $5 trillion economy by FY28. To achieve this, the report posits the need for 11.0–11.5 percent annual nominal GDP growth (in rupee terms) until 2027. Uttar Pradesh is predicted to be one of the two states that will surpass the $500 billion mark in 2027 (FY28), positioning India as the third-largest economy globally.
According to the SBI Research report, Uttar Pradesh is projected to hold the second-highest weightage in India’s GDP by FY28. The report suggests that the state’s GDP has the potential to surpass that of Norway, which is currently holding the second position in the Human Development Index (HDI). Additionally, Uttar Pradesh has demonstrated notable progress in the realm of exports, achieving a compound annual growth rate (CAGR) of 7.1 percent in FY2013-23, outpacing the national average of 4.1 percent.
In November 2023, Finance Minister Nirmala Sitharaman anticipated that India would surpass Japan and Germany to become the world’s third-largest economy by 2027. The Ministry of Statistics and Programme Implementation, in its update on January 5, projected a 7.3 percent growth in India’s GDP for the fiscal year 2023-24, up from 7.2 percent in the preceding fiscal year. However, the statistics ministry’s first advance estimate suggests a more conservative nominal GDP growth of 8.9 percent for the current year, while the finance ministry had initially assumed a growth rate of 10.5 percent for 2023–24.
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