Defense News ,India :- In a recent report released on January 21st, the State Bank of India (SBI) anticipates a significant surge in tax revenue for Uttar Pradesh, estimating an additional Rs 20,000-25,000 crores. The primary drivers behind this fiscal boost are the completion of the Ram Mandir in Ayodhya and the implementation of the Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme by the Central government.
According to the FY24 budget, Uttar Pradesh is poised to witness a substantial increase in tax revenue, reaching around Rs 2.5 lakh crore. The SBI report highlights that tourist spending in the state is anticipated to double in the current year compared to 2022, with a potential total expenditure exceeding Rs 4 lakh crore by the year-end.
The report underscores the completion of the Ram Mandir in Ayodhya and the state government's proactive tourism promotion measures as key catalysts for this projected surge in tourist spending. In 2022, domestic tourists spent approximately Rs 2.2 lakh crore, while foreign tourists contributed an additional Rs 10,000 crore to the state's economy. Ayodhya alone recorded a substantial 2.21 crore tourists during the same year.
Estimates for Uttar Pradesh's gross state domestic product (GSDP) in FY24 stand at Rs 24.4 lakh crore ($298 billion). The report observes that the burgeoning spiritual tourism sector has not only transformed the tourism landscape but also spurred advancements in physical and digital infrastructure, improved connectivity, and a noticeable uptick in travel activities.
Commending the state's initiatives on economic and socioeconomic fronts, the report forecasts that Uttar Pradesh is well-positioned to surpass the $500 billion mark as India inches closer to achieving a $5 trillion economy by FY28. The report even predicts that by FY28, Uttar Pradesh could have the second-highest weightage in Indian GDP, potentially overtaking Norway, a Scandinavian country.
The SBI report recommends that the state government adopt a comprehensive travel plan to capitalize on this tourism surge. The proposed plan aims to offer curated experiences highlighting the rich history of significant locations within the state and neighboring regions, employing a hub-and-spoke model. Additionally, the report suggests exploring international collaborations to create an extensive tourist map, further enhancing the state's appeal to global travelers.
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