22 January 2024 – A day that will hold a significant place in the country’s history.
It is not only because of religious sentiments, but the consecration of Ram Temple is also an important milestone affecting the country’s economy. Today’s article discusses how the latest development will boost investment growth in Ayodhya across different sectors, benefitting the entire economy.
Why is Ayodhya in the news?
Ayodhya is considered the birthplace of Lord Ram. Due to various religious and political issues for decades, the temple of the deity could not be established. However, on 22 January 2024, the Indian Government opened the temple’s doors to devotees and tourists worldwide through prana pratishta of the idol.
Despite arguments and disagreements among the country’s citizens concerning political and religious views, it is undeniable that the temple has a significant role in contributing to the country’s economy.
How does the new development affect the Indian economy?
In August 2020, Prime Minister Sri Narendra Modi laid the first stone to begin the temple’s construction. Today, besides being a sacred place of worship, the temple is a monument attracting tourists from different countries.
The temple stands on 28,000 square feet of land. Ayodhya’s Sri Ram Janmabhoomi Temple has 392 pillars, 44 doors and three floors. Following the Nagara style of architecture, the temple is built only using stones and is considered one of the largest temples in India.
The cost of construction was close to ₹1,800 crores. The temple’s committee was able to raise about ₹3,500 crores as a donation for construction. The remaining funds will be used to maintain and conduct various temple activities. The temple’s construction cost is considered one of the most expensive budgets for a religious project.
Given the magnificent architecture and religious sentiments, Ayodhya’s tourism hopes to witness significant growth. According to analysts, the temple will have 50-100 million visitors every year, increasing the growth of temple tourism and related sectors.
Airlines and railways
The government began redeveloping Ayodhya’s railway station in 2018 to facilitate convenient travel. The Ayodhya Dham railway station was revamped with a budget of ₹430 crores and now has the best facilities, making it one of the finest railway stations in the country.
Also read: 1853 to 2023: A case study on Indian railways, its birth and growth
The government spent ₹328 crores towards developing the airport at Ayodhya. The airport built on 821 acres of land, offers modern facilities to provide a seamless travel experience for domestic and international travellers.
Apart from the two, the government is focusing on roadway development by constructing four-way paths to connect Ayodhya to other cities. Besides, it is also working on establishing inter-state bus travel to connect Ayodhya to different states.
Such developments in the travel sector are essential to handle the inflow of tourists to Ayodhya. To attract more people, airways and railways have announced direct routes along with package deals for travellers.
Hospitality sector
The hospitality sector will be one of the primary beneficiaries of the increasing number of tourists in Ayodhya. With more people visiting the city, the need for food and stay increases. This obviously means more demand for hotels, resorts and restaurants.
Famous luxury brands like Taj, Marriott, ITC, etc., are in talks to establish their branches in Ayodhya. Besides, the popular OYO is also planning to add 50 hotels in Ayodhya to improve affordable stay options in the city. QSRs (Quick Service Restaurants) such as Jubilant Foods, Burger King and others have either set up their outlets or are planning to do so soon.
FMCG players
FMCG products are noticing increased demand in Ayodhya and surrounding areas. Since the beginning of festivities to inaugurate the temple, Kirana stores in Ayodhya have had to stock up products 32% more than they did in January 2023.
Also read: Fast-Moving Consumer Goods (FMCG) Sector- A Safe Haven in Bear Markets?
With an increasing number of tourists, the demand for bottled water, beverages and packaged food like biscuits, chips and other ready-to-eat products is likely to increase.
FMCG brands such as Bisleri, Dabur India, Parle, Coca-Cola, etc., have been working towards increasing the supply of their products in shops that are on the way to Ayodhya. Additionally, they are also planning marketing activities such as setting up vending machines, providing samples, etc., to increase their popularity among tourists.
Besides the demand for food and beverages, puja-related items such as wicks, diyas, ghee, oil, flowers, etc., are also noticing an increase in demand.
Real estate
With multiple developments across different sectors, the real estate prices in Ayodhya are expected to skyrocket soon. There is already a significant rise of about ten times in current prices compared to real estate prices five years ago. The Supreme Court judgement of Ram Janmabhoomi in 2019 initiated the price surge.
Stock market
The stock market is hopeful to see a bullish outlook due to the development of Ayodhya. All stocks belonging to real estate, FMCG, infrastructure, airlines, railways, etc., are expected to benefit. Especially stocks linked to Ram-Mandir’s constructions are anticipating significant growth.
Four stocks connected to the temple’s construction that have already noticed a price rise are:
- Allied Digital Services – The firm is selected as the Master System Integrator for Ayodhya’s smart city project.
- Easy Trip Planners – The travel company has launched holiday packages and direct buses to Ayodhya.
- Thomas Cook India – Similar to Easy Trip Planners, Thomas Cook has also launched reasonably priced package trips to Ayodhya.
- InterGlobe Aviation Limited – Indigo, being the first airline to start flights at Ayodhya’s airport, has now started direct flights from Mumbai to Ayodhya to improve connectivity.
- L&T Ltd (Larsen and Toubro Limited) – The Indian conglomerate was responsible for designing and constructing the Ram Mandir at Ayodhya.
Uttar Pradesh’s costs and gains
Uttar Pradesh is one of the top contributors to India’s GDP, thereby helping the development of the country’s economy. With Ayodhya’s redevelopment, the position of UP in the economic landscape is only expected to get better.
The UP Government has set aside a budget of ₹85,000 crores for Ayodhya’s revamping. With the various developments, the state is expected to see a growth in employment opportunities and revenue across different sectors. The anticipated revenue from UP this year is ₹4 lakh crores, with ₹20,000-25,000 crores from taxes alone.
Also read: Economics of the tourism and hospitality industry in India
Bottomline
The controversies around Ayodhya’s Ram Mandir may take a while longer to settle. However, there is no doubt that Ayodhya’s temple is a powerful force in fostering the country’s economy. Considering the rate at which Ayodhya is developing, it will surely be a significant contributor towards India’s journey to become the third-largest economy.
