At a time when consumption has gone down, pulling the GDP growth rate to 6.4% in FY 2024-25, compared to 8.2% a year before, a congregation of about 45 crore people spread over 45 days has begun in the most populous state of Uttar Pradesh.
Hindu’s most sacred religious congregation began in Prayagraj on Monday or the Poush Purnima with an expected number of 1.65 crore of devotees bathing in the Ganges.
The authorities have claimed that about 3.50 crore people took dips during the Makar Sankranti on Tuesday. These two data can help us understand the economics operating behind Maha Kumbh 2025.
Will Maha Kumbh 2025 Generate Rs. 2 Lakh Crore?
The religious congregation that has begun with an estimated budget of Rs 7,500 crore is expected to generate a business of Rs 2 lakh crore.
Claiming that the Maha Kumbh 2025 will become the largest hub of the religious economy in the world, the Confederation of All India Traders (CAIT) has estimated this whopping amount.
It has been estimated that local hotels, restaurants, lodges, guest houses and others that may provide temporary lodging facilities for the devotees may generate Rs 40,000 crore. Besides, devotees may spend about Rs 20,000 crore on packaged foods, water, and meals.
According to the CAIT, religious items like lamps, idols, incense sticks, and religious books may fetch another Rs 20,000 crore.
While tour guides and travel packages may earn Rs 10,000 crore, local handicrafts, jewelry, and souvenirs may be sold for Rs 5,000 crore.
The CAIT has estimated that while temporary medical camps and Ayurvedic products may generate Rs 3,000 crore, e-ticketing, digital payments, and WiFi services may bring Rs 1,000 crore.
How Many Jobs Will Maha Kumbh 2025 Create?
According to a study by the Confederation of Indian Industry (CII), the last Kumbh Mela, held in 2019, generated a whopping Rs. 1.2 lakh crore. As many as 6 lakh people got temporary jobs during the mela.
If reports are to be believed, helicopter service may fetch Rs. 157 crore over 45 days of Maha Kumbh. It will charge Rs 5,000 from every passenger and may ferry about 7,000 people per day, thus garnering Rs. 3.50 crore per day.
The festival is most likely to benefit local small-scale vendors, tempo operators, rickshaw pullers, boat operators, flower sellers at temple sites and those selling memorabilia.
The advertisement sector will make a business of Rs 36,000, out of which 25% will be generated from outdoor advertisements.
Maha Kumbh To Boost UP Economy!
Big FMCG firms like the ITC, Coca-Cola, Hindustan Lever, Dabur, Bisleri, Emami, Reliance, SpiceJet and some banks have brought branding rights.
Dettol!
FMCG brand Reckitt will use the opportunity to promote it flagship hygiene brand Dettol by supporting nearly 15,000 sanitation workers. It will train them how to make soaps accessible to them at Kumbh.
It will also deploy its hygiene volunteers across all 25 sectors of the Kumbh, and offer guidance to the pilgrims.
Dabur
Dabur has planned a series of consumer-engaging activities to connect with people.
It will also display its products like Dabur Chyawanprash, Dabur Honey, Dabur Red Paste, Dabur Amla Hair Oil, Vatika, Hajmola, and Honitus at the Kumbh Mela.
Coca-Cola, Pepsico
Coca-Cola has planned to pair its portfolio of beverages with local foods and flavours.
It rival Pepsico has installed a 30-foot-tall illuminated Mountain Dew bottle. It has also set up over 500 charging points under its carbonated energy drink brand Sting.
ITC
The ITC has activated its Mangaldeep agarbatti and packaged food brand Bingo.
Reliance
Mukesh Ambani-owned Reliance Consumer Products Ltd (RCPL), has offered services and products to enhance the pilgrim journey.
It will provide refreshments to pilgrims, and put up signage and directional boards to assist pilgrims.
The entire ecosystem of Prayagraj and to some extent the state of UP will reap rich dividends from the Maha Kumbh 2025.
The Maha Kumbh will also boost the overall economy and may boost tourism, infrastructure, FMCG, consumer goods, and transportation sectors. It will kickstart the growth that may support more infrastructure for development as the state government will earn revenue in the form of taxes.
