Mahakumbh 2025 in Prayagraj is poised to create a significant cultural, social, and economic impact. Chief Minister Yogi Adityanath recently highlighted its potential to generate Rs 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. Additionally, 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. According to renowned CA and economist Pankaj Gandhi Jaiswal, 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. 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 Rs 10,000 per person. When multiplied by 45 crore visitors, the total economic activity generated could amount to a staggering Rs 4.5 lakh crore. Even with a conservative estimate accounting for a 10% margin of error, the economic contribution would still exceed Rs 4 lakh crore, making it a remarkable boost for the economy. This 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. According to Jaiswal, the government’s investment in Mahakumbh 2025 will yield returns many times over. The double-engine government is allocating approximately Rs 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 Rs 4 lakh crore economic activity results in a potential revenue of Rs 50,000 crore. Adding income tax and other indirect taxes on the earnings generated from this expenditure, the figure could rise to Rs 1 lakh crore, demonstrating the multiplier effect of the government’s investment. These projections indicate that, beyond the theoretical calculations, the Mahakumbh will deliver substantial economic benefits. The financial gains in the following quarter are expected to invigorate the economy. Even the stock market is likely to reflect this positivity through robust quarterly figures. According to noted CA Anil Gupta from Prayagraj, while the emotional and spiritual significance of the Mahakumbh is undeniable, its economic impact is equally noteworthy. The government’s substantial investment in this year’s Mahakumbh is set to generate significant revenue through avenues such as railways, transport, electricity, and rental income from the land allotted for the event. When combined, these factors are projected to contribute around Rs 1 lakh crore to revenue, including GST and infrastructure earnings. The reinvestment of this revenue into infrastructure will have a cascading effect on the economy. The influx of visitors from across the globe is also expected to boost tourism significantly. Highlighting Prayagraj’s transformation, Gupta noted that the city, which previously lacked 5-star and 7-star hotels, now hosts such establishments to cater to international tourists, further strengthening its economic landscape. These developments are likely to drive a 1% increase in GDP growth, with GST collections across Uttar Pradesh, including Prayagraj, anticipated to triple during December, January, and February. The overall impact of Mahakumbh 2025 is expected to have a lasting impact on the state’s economy. Dr. AK Singhal, retired Dean of the Commerce Faculty and Finance Officer at Allahabad University, praised the double-engine government for its efforts in making Mahakumbh 2025 a grand success. “The economic impact will be tremendous, benefiting the entire state, including Prayagraj. Crores of people from across the country and abroad will come here and spend money, directly boosting the incomes of transport operators, local vendors, shopkeepers, rickshaw pullers, taxi drivers, and boatmen,” he stated. Dr. Singhal estimated that the event could generate Rs 40,000 to Rs 50,000 crore, with the government potentially earning up to ten times its investment. “This revenue will be reinvested into the state’s development, strengthening the vision of Sabka Saath, Sabka Vikas. Both the state and national economy will see significant benefits,” he added. Highlighting the ripple effect, Dr. Singhal noted that visitors traveling to destinations like Ayodhya, Chitrakoot, Varanasi, Vindhyachal, and Allahabad would further contribute to the state’s revenue. GST collections in Uttar Pradesh are also expected to witness a significant surge. He emphasized that the increased revenue would fuel development, enhance purchasing power, boost demand, and drive production, creating a positive cycle of economic growth for the state and beyond.
