Ayodhya Ram Mandir Economic Impact: Growth Sectors & Stocks

Introduction

The construction of the Ram Mandir in Ayodhya has sparked significant discussions not only about its cultural and religious impact but also about its potential economic advantages. In this blog we will try to explore how the Ram Mandir may contribute to the Indian economy and which sectors and stocks could potentially benefit from this development. Additionally, we will look out for four stocks that experienced a significant rise following the inauguration of the Ram Mandir.

 

Ayodhya: A Temple for Growth in India

As the Ram Mandir's consecration ceremony concludes, Ayodhya, the holy city of India, is getting more and more economic activity. The Confederation of All India Traders (CAIT) reports that the ceremony alone generated business worth more than INR 100,000 crore across the country. Now, as the temple opens its doors to devotees from January 23, Ayodhya is expected to experience a significant increase in religious tourism. 

 

 

Here are four key points highlighting the impact of the Ram Mandir in Ayodhya's economy.

 

1- Massive Visitor Expectations:

The Ram temple is anticipated to attract around 100 million visitors annually. This surge in tourism is poised to make Ayodhya a major religious destination, emphasising its potential as a prominent center for spiritual seekers.

 

2- Boost to Temple Tourism:

India's tourism is a major contributor to the GDP, expected to grow from $194 billion in FY19 to $443 billion by FY33, despite COVID-19 setbacks. Religious tourism is a significant part, drawing millions despite infrastructure challenges. 

 

3- Economic Impact:

Ayodhya's tourism is improving with a new airport, expanded railway station, and a planned greenfield township. This development is set to boost various sectors, including hotels, airlines, hospitality, FMCG, travel, and cement, benefiting the economy.

 

4- Government Support for Tourism:

The Indian government's financial support to pilgrimage sites, including Ayodhya, is poised to boost tourism on a larger scale. Currently, India generates $200 billion (7% of the country's economy) in revenue from tourism, and this support is expected to further elevate these numbers.

 

 

 

4 Stocks that saw a major rise from Ram Mandir Inauguration

The recent consecration ceremony of the Ayodhya Ram Mandir has not only been a monumental event for the nation but has also led to a significant boost in the stock prices of certain companies. Here are four stocks that have experienced a notable rise in share prices due to their connections to business and tourism in Ayodhya:

 

1. Allied Digital Services:

   - Share prices have surged over 41% from October 2023 to January 2024. The rally began after the company secured the contract for the Ayodhya Smart City Project, aligning with the upcoming Ram Mandir ceremony.

 

2. Thomas Cook India:

   - Witnessing a spike of 35% in share prices since October, Thomas Cook India capitalised on the event by offering budget travel packages to Ayodhya ahead of the consecration ceremony.

 

3. Easy Trip Planners:

   - Early in announcing travel packages for Ayodhya, Easy Trip Planners witnessed a share price rally of over 20% since October 2023.

 

4. InterGlobe Aviation:

   - With an increase in holdings in IndiGo Airlines and the announcement of commercial flights to Ayodhya, InterGlobe Aviation experienced a stock spike of over 27%.

 

 

 

Ram Mandir Funding: Progress and Contributions

The construction of the Ram Mandir in Ayodhya, estimated to cost Rs 1,800 crore, is managed by the Shri Ram Janmabhoomi Teerth Kshetra Trust, created by the BJP-led Central government in February 2020. The trust collects funds from pilgrims, individuals, and organizations nationwide. 

 

In October of the previous year, the Central government allowed the trust to receive funds from abroad. As of January 19, 2024, the trust has gathered over Rs 3500 crore in donations. The funding primarily comes from people and organisations supporting the cultural and religious significance of the temple.

 

Indian Celebrities Contributing to Ayodhya's Ram Mandir

- Pawan Kalyan

- Akshay Kumar

- Anupam Kher

- Hema Malini

- Manoj Joshi

- Gurmeet Chaudhary

- Pranitha Subhash

- Gautam Gambhir

- Mukesh Khanna

- Manish Mundra

 

 

Advantages of making the Temple

The decision to invest in the construction of the Ram Mandir has been met with contrasting opinions, with very few criticising that building hospitals or educational institutions would have been a more prudent choice. However, it is essential to recognize the economic impact of religious and spiritual tourism.

1. Economics of Temples:

   - Temples and religious services have their own economic significance, historically serving as important economic centres. They attract tourism, leading to development in the surrounding areas and contributing to the local economy.

2. Employment Generation:

   - Temples, by virtue of their activities and modernization efforts, generate employment opportunities for a multitude of people. The construction, maintenance, and services associated with temples create jobs and contribute to livelihoods.

3. Tourism and GDP Contribution:

   - Religious and temple tourism is a substantial part of overall tourism in India. The government's efforts to strengthen the temple economy align with the goal of boosting tourism-related revenue and contributing to GDP growth.

4. Modernization and Infrastructure Development:

   - Investment in temples, including the construction of the Ram Mandir, can lead to the modernization and development of infrastructure, further enhancing the overall tourism experience.

 

 

 

Conclusion

The building of the Ram Mandir in Ayodhya is making a big impact on the economy, especially in Uttar Pradesh. More people visiting for spiritual reasons is changing tourism in the area, bringing in more taxes and helping the state's economy. This growth is benefiting various sectors like hotels, travel, security, and IT services.

Even though people may have different opinions on spending money on the temple, it's clear that the temple is helping the region and the country's economy. The government and the state are working together to boost the temple's economy, supporting economic growth through spiritual and cultural tourism.

 

Disclaimer: This Stock Analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor!