The Maha Kumbh Mela in Prayagraj, Uttar Pradesh, officially began on Monday (Jan 13) and is expected to draw an estimated 40 crore visitors over the next 45 days. Beyond its religious and cultural significance, the event has evolved into a significant economic event, offering a platform for diverse businesses to thrive.
Infrastructure and Investments
The Uttar Pradesh government has allocated a budget of Rs 69 billion ($814 million) for this year’s event, spanning 549 projects related to infrastructure, sanitation, and logistics. By comparison, the 2019 Kumbh Mela saw investments of Rs 37 billion ($430 million) across 700 projects. Various officials estimate the event will generate direct revenues of Rs 250 billion ($2.91 billion) and an overall economic impact of Rs 2 trillion ($23.26 billion) for the state’s economy.
Economic opportunities
The Confederation of All India Traders (CAIT) projects that Rs 5,000 crore will come from sales of religious items, Rs 40 billion ($465 million) from dairy products, and Rs 8 billion ($93 million) from flowers.
The hospitality sector is anticipated to contribute Rs 60 billion ($697 million). The luxury tent sector exemplifies this trend, with nightly rates for high-end options ranging from Rs 18,000 ($209) to Rs 0.1 million ($1,162). The state has facilitated this through the creation of 1.6 lakh tents, including 2,200 luxury units, alongside hotels, guesthouses, and dharamshalas.
Food and hospitality
The Mela grounds host a mix of food courts and branded outlets. For instance, RR Hospitality Pvt Ltd has spent over Rs 120 million ($1.4 million) setting up 14 outlets across the site. The company expects significant returns, driven by partnerships with brands like Starbucks and Domino’s.
Enhancing infrastructure
The city has implemented measures to handle the large influx of pilgrims. It includes floating jetties, expanded tent accommodations, and temple tourism. Special corridors have also been designed to manage crowd flow. Some corridors are also capable of accommodating up to 20,000 people simultaneously.
Broader impact
Over 7,000 small businesses and vendors are operating in the city, and over 2,000 areIndia trained in digital payment systems. The Kumbh Mela is expected to provide temporary employment for a wide range of workers, with an estimated earnings of Rs 2 billion ($23 million) from smaller businesses.