Pilgrimage & Progress: Religious tourism fueling India’s economy?

India has long had a rich untapped potential for religious tourism, even as it continually draws millions of pilgrims and travelers seeking spiritual enrichment. With its vast network of temples, mosques, churches, gurudwaras, and sacred rivers, the country offers an immersive experience that blends faith, tradition, and culture. Religious tourism not only strengthens spiritual and communal bonds but also plays a vital role in economic development by generating employment, boosting local businesses, and driving infrastructure growth.

Recognizing its immense potential, the Indian government has made substantial investments in enhancing pilgrimage sites and tourism infrastructure. The Maha Kumbh 2025, the world’s largest religious gathering, stands as a testament to the transformative power of spiritual tourism, significantly contributing to employment generation and economic expansion. Additionally, initiatives such as the development of 50 top tourist destinations, the PRASHAD scheme, Swadesh Darshan Scheme 2.0, and enhanced travel facilitation aim to position India as a global leader in cultural and religious tourism. As the nation moves towards its 2047 vision, these strategic efforts will further cement India’s reputation as a spiritual and economic powerhouse.

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Religious tourism is vital as it strengthens spiritual and cultural bonds while significantly boosting the economy. With a rich heritage of temples, mosques, churches, and gurudwaras, India attracts millions of pilgrims and travelers seeking divine experiences. Destinations like Prayagraj, Varanasi, Amritsar, Rishikesh, and Ajmer among others foster communal harmony and showcase India’s diverse traditions.

Recognizing tourism’s potential for economic growth, the Union Budget 2025-26 has allocated ₹2,541.06 crore to enhance infrastructure, skill development, and travel facilitation. A key initiative includes developing 50 top tourist destinations with world-class facilities and connectivity, driving India’s vision of becoming a developed nation by 2047.

Effect of the Maha Kumbh 2025

The most auspicious and spiritual Kumbh mela that took place after a long period of 144 years concluded this week with Mahashivratri celebrated all over India. As India is the land of festivities and spiritual tourism, these events are emerging as a significant driver for economic growth in India.

The Maha Kumbh, which is the world’s largest religious gathering, has also emerged as one of the strongest economy boosters, specifically for the state of Uttar Pradesh. Initially an estimated 450 million people were expected to take a dip in the Triveni Sangam (confluence of the rivers Ganga, Yamuna and Saraswati). By the end of the event the total number of pilgrims swelled up to 660 million!

  • The festival generated approximately 1.2 million temporary jobsacross sectors like tourism, transportation, healthcare, and retail, significantly boosting both local and national economies.
  • Prayagraj, the host of Maha Kumbh 2025, underwent extensive upgrades to accommodate millions of pilgrims.
  • Over 200 roads were renovated, 300,000+ trees were planted, and several pontoon bridges were constructed for smoother movement.
  • Advanced technologies like AI-powered cameras and drones enhance crowd management and security. To ensure accessibility, digital darshans and snans allow devotees to participate remotely. These improvements not only enhance the pilgrimage experience but also contribute to long-term urban development, making Prayagraj a more connected and efficient religious tourism hub.
  • Trade in daily essentials is expected to have reached ₹17,310 crore, while the hotel and travel sectors are projected at ₹2,800 crore. Religious materials and flowers generated approximately ₹2,000 crore and ₹800 crore, respectively.

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In terms of employment, Maha Kumbh 2025 created an estimated 12 lakh gig and temporary jobs. The tourism and hospitality sector contributed 4.5 lakh jobs, including hotel staff, tour guides, and event coordinators. Transportation and logistics added 3 lakh jobs, employing drivers and supply chain managers. Retail and consumer goods saw record sales, driven by high demand. Maha Kumbh-themed products like diaries, calendars, jute bags, and religious stationery experienced a surge in sales, boosted by strategic branding efforts.

Travel companies like EaseMyTrip also played a crucial role in facilitating travel for the Maha Kumbh Mela 2025. With millions of devotees attending, EaseMyTrip provided seamless travel solutions, including flight bookings, customized pilgrimage packages, and guided experiences, ensuring a smooth spiritual journey for attendees. Even after the mela concluded the company continues to enhance religious tourism by offering customized travel solutions for upcoming spiritual events and destinations across India.

Growth in pilgrim-connected destinations search online in India in 2024, by city

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Source: Statista, figures in % *

Tourism: A key driver of development

In FY23, the tourism sector’s contribution to GDP rebounded to 5%, matching pre-pandemic levels. It generated 7.6 crore jobs, while international tourist arrivals (ITAs) in India also returned to pre-pandemic figures, accounting for 1.45% of global ITAs. Foreign exchange earnings from tourism reached US$ 28 billion, with India securing 1.8% of global tourism receipts. This placed the country 14th worldwide in tourism earnings for 2023.

Presenting the budget, Finance Minister Smt. Nirmala Sitharaman announced a landmark initiative to develop 50 top tourist destinations in collaboration with states through a challenge mode. This aims to enhance tourism infrastructure, ease travel, and improve connectivity. States will provide land for key infrastructure, including hotels, now classified under the Infrastructure Harmonized Master List (HML) to attract investment. Additionally, ₹3,295.8 crore in interest-free loans will support 40 projects across 23 states under the Special Assistance to States for Capital Investment, fostering globally recognized tourist destinations.

Yearly performance of the PRASHAD scheme

Year No. of Sanctioned Projects Sanctioned Amount (₹ Crore) Released Amount (₹ Crore)
2015 8 171.22 41.72
2016 8 197.46 63.15
2017 5 186.58 130.09
2018 4 190.05 138.32
2019 3 99.58 131.70
2020 3 126.25 116.93
2021 6 252.25 134.85
2022 8 352.03 97.70
2023 1 45.71 122.37
2024 (till date) 2 41.79 60.13
Total 48 1646.99 1036.96

Source: Ministry of Tourism

The Swadesh Darshan Scheme 2.0 (SD 2.0), focusing on sustainable tourism, will expand, with 34 projects already approved, receiving ₹793.2 crore in funding. To boost employment, ₹60 crore is allocated for skill development in tourism, including training in hospitality management.

Recognizing the significance of religious tourism, the government will prioritize developing key pilgrimage and heritage sites. A special focus will be on destinations linked to Lord Buddha, positioning India as a major Buddhist tourism hub. The PRASHAD (Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive) scheme will continue enhancing infrastructure at major pilgrimage sites, ensuring world-class amenities and accessibility. By strengthening spiritual tourism, the government aims to establish India as a global cultural hub while driving economic growth and job creation.

Foreign tourist arrivals (FTAs) into India during 2024 

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Source: Ministry of Tourism, figures in lakhs *

While speaking to IBT, Rikant Pittie, CEO and Co-Founder, EaseMyTrip said:

“Spiritual tourism in India is witnessing significant growth as more travellers seek meaningful experiences at sacred destinations. In 2024, India’s religious tourism market was valued at US$ 202.8 billion, and is expected to grow to US$ 441.2 billion by 2032. Pilgrimage sites like Varanasi, Rishikesh, Tirupati, and Shirdi are attracting millions of devotees annually, contributing to both cultural preservation and economic growth. With improved infrastructure and digital advancements, accessibility to these sites has become easier, further fueling interest in spiritual travel.

A key factor driving this trend is the increasing desire for inner peace, wellness, and cultural connection, according to Rikant. More people are exploring meditation retreats, yoga centers, and temple circuits to rejuvenate spiritually.

To cater to this growing demand, EaseMyTrip has introduced Easy Darshan, a specialized service that streamlines pilgrimage travel. Easy Darshan provides curated packages, including transportation, accommodation, and guided temple visits, ensuring a hassle-free and enriching experience for devotees.

Employment-Led Growth Initiatives in Budget 2025-26

The 2025-26 budget introduces several measures to drive employment-led growth in the tourism sector, enhancing skill development, infrastructure, and accessibility. These initiatives aim to create job opportunities while improving the overall travel experience for domestic and international visitors.

Skill Development Programs: Intensive training programs will be launched to equip youth with industry-specific skills, particularly in hospitality management. Institutes of Hospitality Management will play a crucial role in training professionals to meet the growing demand in the tourism and service sectors.

Support for Homestay Entrepreneurs: To promote local businesses and community-based tourism, the government will facilitate “MUDRA loans” for individuals running homestays. This initiative will empower small entrepreneurs, boost rural and heritage tourism, and enhance travelers’ experiences with authentic local stays.

Enhanced Connectivity & Travel Infrastructure: The budget emphasizes improving transportation networks, ensuring better road, rail, and air connectivity to major tourist destinations. This will reduce travel time and increase accessibility to lesser-known locations, driving regional economic growth.

Performance-Based Incentives for States: States will receive “performance-linked incentives” for effectively managing tourist destinations. Key evaluation metrics include infrastructure development, cleanliness, safety, marketing efforts, and overall visitor experience. This will encourage states to adopt global best practices and create world-class tourism hubs.

Simplified Visa & Fee Waivers: To attract more international tourists, the government is planning to introduce “streamlined e-visa facilities” and offer visa-fee waivers for select tourist groups. This move is expected to ease entry barriers, boost foreign tourist arrivals, and contribute to higher foreign exchange earnings.

Contribution of tourism to employment between 2017-23

Year Share in jobs (%) Direct (%) Indirect (%) Direct + Indirect jobs (million)
2017-18 14.78 6.44 8.34 72.69
2018-19 14.87 6.48 8.39 75.85
2019-20 13.50 5.89 7.61 69.44
2020-21 12.91 5.63 7.28 68.07
2021-22 12.66 5.52 7.14 70.04
2022-23 12.57 5.48 7.09 76.17

Source: Ministry of Tourism

India’s religious tourism sector stands at the crossroads of cultural heritage and economic progress, playing a crucial role in national development. The remarkable success of Maha Kumbh 2025 underscores how spiritual events can drive massive employment, infrastructure advancements, and trade opportunities. With strategic government investments, including the ₹2,541.06 crore allocation in the Union Budget 2025-26, India is poised to transform its tourism landscape.

Key initiatives such as the development of 50 world-class destinations, enhanced connectivity, and skill-building programs are set to elevate India’s standing as a global tourism hub. The integration of digital innovations, sustainable tourism models, and streamlined travel policies will further boost domestic and international tourism. As India moves toward its 2047 vision, religious and heritage tourism will continue to be a powerful force boosted by various government initiatives, infrastructure push and active private sector participation; thereby fostering economic growth, cultural pride, and global recognition.

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