Mahakumbh 2025: From ₹7,500 cr budget to ₹2 lakh cr expected revenue – mega mela economy’s multiplier effect revealed

Mahakumbh 2025: On December 13, Prime Minister Narendra Modi described the ‘Mahakumbh 2025’ as a ‘mahayagya of unity’, emphasising the event’s role in promoting social cohesion and economic empowerment of communities.

“Kumbh not only gives social strength but also provides economic empowerment of the people,” Modi said, addressing a public gathering in Prayagraj after inaugurating 167 development projects worth ₹5,500 crore.

The 45-day mega event, billed as the largest human gathering on earth, began on January 13 in Uttar Pradesh’s Prayagraj. The 45-day event is expected to see a footfall of about 400 million people before it concludes on February 26

The ‘Mahakumbh’ takes place once every 12 years. This year, it will be held over an area of 4,000 hectares.

Lakhs of devotees arrived at the Triveni Sangam to take a holy dip on the occasion of Makar Sankranti, which marks the first ‘Amrit Snan’ of Mahakumbh on January 14, Tuesday.

₹2 lakh crore Revenue Boost

Like in past years, the ‘Mahakumbh 2025’ promises to be a money spinner this time too. From a milkman to a company operating helicopter, the event generates revenue for varied sections.

Uttar Pradesh industrial development minister Nand Gopal Gupta Nandi has estimated that Prayagraj, earlier known as Allahabad, would earn over ₹2 lakh crore revenue from the ‘Mahakumbh 2025’.

The UP Chapter of Confederation of All India Traders (CAIT), a pan India trader’s body, estimates that the revenue generated by basic items required by devotees during ‘Mahakumbh 2025’ would be around ₹17,310 crore.

Among other things, groceries would generate ₹4000 crores, edible oils ₹1000 crore, vegetables ₹2000 crore, beds, mattresses, bedsheets and other household goods ₹500 crore, milk and other dairy products ₹4000 crores, hospitality ₹2500 crore, travel ₹300 crore, boatmen ₹50 crore revenue during the mega fair.

“Mahakumbh will witness large-scale economic and trade activities. An estimate suggests that with an average expenditure of ₹5,000 per person during religious travel, the total spending will exceed ₹2 lakh crore. This includes spending on hotels, guesthouses, temporary accommodations, food, religious items, healthcare, and other services,” said Praveen Khandelwal, Secretary General of CAIT who is also BJP MP from Chandni Chowk seat in the national capital.

Over 6 lakh jobs at Mahakumbh 2013

The last Mahakumbh held in 2013 generated a revenue of around ₹12,000. The Kumbh Mela 2019 generated ₹1.2 lakh crore, according to a study by the Confederation of Indian Industry (CII). Economic activities associated with the Kumbh generated employment for over 6 lakh workers in 2019 across various sectors, reports said.

The revenue generated by puja items alone is expected to be around ₹2000 crore while the flower trade at the 45-day mela would be an estimated ₹800 crore, according to CAIT.

Alok Shukla, President of the UP chapter of the Confederation of Indian Industry (CII), calls the Maha Kumbh a “golden opportunity” for local businesses, with “revenues equivalent to one year’s worth of business compressed into two months.”

Hospitality Boom

The hospitality industry also expects a boom. As many as 150 hotels in Prayagraj and its neighbouring areas cater to devotees and tourists.

The luxury tents are priced between ₹18,000 and ₹20,000 per night. Premium accommodations are priced at ₹1 lakh per night for two guests. With demand high on auspicious bathing days, all 44 super-luxury tents at Sangam Nivas are sold out, according to UP government officials.

The Uttar Pradesh State Tourism Development Corporation (UPSTDC) has four categories of tents — Villa, Maharaja, Swiss Cottage, and Dormitory — with prices ranging from ₹1,500 per night for dorms to ₹35,000 for the high-end ones, according to reports.

“The Mahakumbh-2025 is a huge world-level event where revenue generation in the hotel industry separately could not be calculated, Uttar Pradesh Hotel and Restaurants Association general secretary Garish Oberoi told Hindustan Times.

The highlight of services at the ‘Mahakumbh 2025’ is the helicopter service. The service is expected to earn about ₹3.5 crore per day on average, catering to 7000 pilgrims over a span of 45 days at a rate of ₹5000 per trip for each pilgrim. According to reports, the helicopter service would earn over ₹157 crore in 45 days.

Budget Allocations

The Uttar Pradesh government will spend an estimated ₹7,500 crore to organise the mega religious event.

In the 2024-25 state budget, the Yogi Adityanath-led UP government allocated ₹2,500 crore for organising the Mahakumbh. The amount was ₹2,500 in the 2023-24 budget and ₹621.55 crore for the financial year 2022-23. The Centre has approved a special grant of ₹2,100 crore for the Mahakumbh.

The UP government had allocated ₹4,200 crore for the 2019 Kumbh Mela while the previous state government had spent around ₹1,300 crore for organising the Mahakumbh in 2013.

Kumbh Mela Nodal Officer Vijay Anand said that the Uttar Pradesh government is projected to earn over ₹25,000 crore through taxes, rentals, and other charges from the event. However, the total financial transactions at the Mela site are anticipated to be significantly higher, ranging between ₹2 lakh crore and ₹3lakh crore.

“The earnings of small-scale vendors, such as tempo operators, rickshaw pullers, flower sellers at temple sites, those selling memorabilia, boat operators, and even hotels, will contribute significantly to the local economy. The entire ecosystem around the Kumbh Mela is expected to experience a massive economic boom,” Anand was quoted as saying by MoneyControl.

Key Trade Estimates of ‘Mahakumbh 2025’ by CAIT:

–Accommodation and Tourism: Local hotels, guesthouses, and temporary lodging arrangements are expected to generate ₹40,000 crore in trade.

-Food and Beverages: Packaged foods, water, biscuits, juices, and meals will likely contribute ₹20,000 crore to the economy.

-Religious Items and Offerings: Items like oil, lamps, Ganga water, idols, incense sticks, and religious books are estimated to yield ₹20,000 crore in trade.

-Transportation and Logistics: Local and interstate transportation, freight services, and taxis could contribute ₹10,000 crore.

-Tourism Services: Tour guides, travel packages, and related services are expected to add ₹10,000 crore.

-Handicrafts and Souvenirs: Sales of local crafts, clothing, jewelry, and souvenirs are projected at ₹5,000 crore.

-Healthcare Services: Temporary medical camps, Ayurvedic products, and medicines are expected to generate ₹3,000 crore.

–IT and Digital Services: E-ticketing, digital payments, Wi-Fi services, and mobile charging stations may see a business of ₹1,000 crore.

-Entertainment and Media: Advertising, promotional activities, and media-related services are likely to result in ₹10,000 crore of trade.