The Mahakumbh is expected to boost India’s economic growth in the fourth quarter, Chief Economic Adviser V Anantha Nageswaran said Friday, citing increased spending on travel, consumption, and hospitality. Spending in January and February related to the Mahakumbh is expected to add significantly to nominal GDP, he said, pointing to a surge in travel, consumer spending, and hospitality during the event.
With an estimated 50-60 crore people travelling for the Mahakumbh, “it will have a sizeable impact on the consumption expenditure data in Q4,” he said. His comments came after government data showed India’s gross domestic product grew 6.2% in the October-December quarter, following 6.5% and 5.6% growth in the first two quarters of the fiscal respectively. Full-year GDP is projected to grow 6.5% as per the second advance estimates.
Nageswaran said the GDP estimate is supported by rising merchandise exports, higher public capital spending, and the economic impact of the Mahakumbh, a major religious gathering. Nageswaran added that the implied fourth-quarter growth rate appears reasonable based on purchasing managers’ index data and other high-frequency indicators. Digital transactions are rising, hotel occupancy rates have returned to usual levels, and port traffic and air cargo data suggest strong domestic and international activity, he said.
While domestic rural demand continues to improve, urban demand too is showing signs of a pick-up, he said. For the full year, adjusting the advance estimates for the average exchange rate so far, nominal GDP for fiscal 2025 translates into $3.924 trillion, which is close to the $4-trillion mark, he said.
Uttar Pradesh Chief Minister Yogi Adityanath chaired a high-level meeting at his residence on Wednesday night, directing officials to conduct a scientific evaluation of the economic impact of the recently concluded Prayagraj Mahakumbh Mela. He stressed the importance of documenting its economic and social effects in collaboration with the Indian government for inclusion in national sample surveys.
The meeting was attended by the Secretary of Statistical Planning and Implementation, Government of India, the Chief Secretary of Uttar Pradesh, and other senior state officials. During the discussion, CM Yogi highlighted that over 66 crore devotees from across the world participated in the Mahakumbh, making it the largest religious, spiritual, and cultural gathering.
He noted that this massive footfall has provided a significant boost to both organised and unorganised sectors, leading to increased employment opportunities across various industries.
The Mahakumbh’s economic contribution is estimated to be around Rs 3.5 to Rs 4 lakh crore, significantly enhancing Uttar Pradesh’s GDP. The mega event has also spurred large-scale infrastructure development worth thousands of crores and bolstered key sectors such as trade, hospitality, transport, MSME, and tourism.
CM Yogi emphasized that the economic benefits have extended to the grassroots level, positively impacting street vendors, boatmen, transporters, food vendors, and sellers of religious items. He described the Mahakumbh as a golden opportunity for the “New Uttar Pradesh of New India” and stressed the need to sustain the momentum generated by the event.
