Ayodhya witnesses economic surge after Ram Mandir consecration: IIM-L study

Lucknow: The consecration of the Ram Temple in Ayodhya has triggered a historic transformation in the city’s economy, with over 11 crore devotees visiting in the first six months and local traders reporting a five-fold increase in income, according to a new study.

Titled “The Economic Renaissance of Ayodhya, India: A Case Study on Sri Ram Mandir”, the study was conducted by Indian Institute of Management Lucknow (IIM-L). It presents a comparative analysis of Ayodhya’s economic condition before and after the construction and consecration of the temple.

Five-fold rise in traders’ income:

The report states that more than 110 million devotees visited Ayodhya in the first six months following the temple’s consecration. During this period, local traders witnessed a five-fold surge in their earnings.

Small businesses, including shops selling religious items, food outlets, transport operators and tour services, have experienced unprecedented growth.

Real estate values soar:

Property values in areas surrounding the temple have reportedly increased five to ten times, while overall real estate prices in Ayodhya have risen by 25 to 40 per cent. The study notes that more than 150 new hotels and homestays have been established in the city to accommodate the rising influx of pilgrims and tourists.

Online bookings have surged by nearly 400 per cent, reflecting the rapid expansion of the hospitality sector. The report further estimates that tourism-related activities could generate tax revenues in the range of ₹20,000–24,000 crore.

Sectors such as hospitality, construction, transportation and allied services have seen significant employment growth.

1.2 lakh jobs expected:

According to the findings, Ayodhya is currently witnessing an average footfall of nearly two lakh devotees per day. Over the next four to five years, approximately 1.2 lakh direct and indirect employment opportunities are expected to be created across hospitality, transport, tourism and related sectors.

The study underscores that the Ram Temple has not only emerged as a spiritual landmark but also as a catalyst for large-scale economic revitalisation in the region. Experts believe that sustained infrastructure development and effective urban planning will be key to ensuring long-term economic stability amid the surge in pilgrim-driven growth.

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