A recent report by SBI Research suggests that Uttar Pradesh could witness a substantial influx of tourist spending, crossing Rs 4 lakh crore annually by the end of 2025. The completion of the Ram Mandir in Ayodhya and proactive tourism initiatives by the state government are anticipated to contribute to an additional tax revenue of Rs 20,000-25,000 crore in FY25.
Tourism Growth and Economic Impact: Uttar Pradesh, adorned with holy places and shrines, has experienced a surge in domestic tourism. State government estimates reveal that around 32 crore tourists visited the state in 2022, with Ayodhya alone witnessing 2.21 crore footfalls. The report highlights the impact of the central government’s PRASHAD scheme in collaboration with states, fostering the development of spiritual travel and creating an enabling ecosystem for tourism infrastructure.
Economic Projections for Uttar Pradesh: The report expresses bullish sentiments about Uttar Pradesh’s economic trajectory, stating that the state is poised to surpass $500 billion by FY28, making it one of the two states to achieve this milestone. With an expected nominal GDP growth of 11.0-11.5 percent per annum till 2027, Uttar Pradesh is anticipated to become a key contributor to India’s journey toward a $5 trillion economy by FY28.
Strides in GDP and Export Front: Uttar Pradesh is predicted to have the second-highest weightage in Indian GDP by FY28, potentially surpassing Norway in GDP. The state has showcased visible progress on the export front, recording a Compound Annual Growth Rate (CAGR) of 7.1 percent between FY2013-23, outpacing the national average of 4.1 percent.
National Economic Outlook: As per Finance Minister Nirmala Sitharaman’s statement in November 2023, India is expected to become the world’s third-largest economy by 2027, surpassing Japan and Germany. The Ministry of Statistics and Programme Implementation projects a GDP growth of 7.3 percent in 2023-24.
