Ram Mandir and other tourism initiatives to add around Rs 25,000 crore to UP’s tax collections in FY25

Uttar Pradesh is set to earn an additional Rs 20,000-25,000 crore in tax revenue in FY25 from the completion of the Ram Mandir in Ayodhya and other initiatives taken by the state government to promote tourism, said SBI researchers Sunday.

UP's own tax revenue is expected to be Rs 2.5 lakh crore in FY24, according to its Budget.

The researchers noted that tourist spending in the state could nearly double in 2024 compared with 2022.


“Given the completion of Ram Mandir in Ayodhya and initiatives taken by the UP government to promote tourism, we believe that the total expenditure by tourists in UP may cross Rs 4 lakh crore mark by end of this year,” the report noted.



SBI calculations indicate that domestic tourists would have spent Rs 2.2 lakh crore in 2022, with foreigners spending another Rs 10,000 crore, as 32 crore domestic tourists—an increase of almost 200%--thronged the state. Ayodhya recorded 2.21 crore tourists in 2022.

“The state government can devise an encompassing travel itinerary that gives the discerning tourists a glimpse of the enchanting history across multiple places of importance in the state as also surrounding states on a hub and spoke model,” SBI researchers added as a further measure to boost tourism.

They also pointed out that India could collaborate with other countries to create a tourist map.

Going UP
The SBI report also lauded the state for its efforts on economic and socio-economic parameters, like improving female labour force participation, increasing innovation potential and growing exports. It noted that the state will likely cross the $500 billion mark as India becomes a $5 trillion economy in FY28.

Uttar Pradesh is expected to have a gross state domestic product of Rs 24.4 lakh crore ($298 billion) in FY24.

“UP is estimated to have second most weightage in Indian GDP by FY28, and its GDP could overtake Norway, the Scandinavian country with second position in Human Development Index (HDI),” it said.