Uttar Pradesh is celebrating with great enthusiasm as the construction of the Ayodhya Ram Mandir reaches its completion. Prime Minister Narendra Modi hoisted the Bhagwa (Saffron) flag atop the mandir tower to mark the historic moment, in the presence of RSS Param Poojaniya Sarsanghchalak Dr Mohan Bhagwat and several other dignitaries. The event not only signifies a cultural milestone but also highlights Ayodhya’s rapid rise as an economic powerhouse in the state.
Since the beginning of the Mandirs construction, Ayodhya has been steadily rewriting the economic map of Uttar Pradesh. Under the Ayodhya Master Plan, the state aims to invest Rs 85,000 crore in the city’s development by 2031. Of this, Rs 2,150 crore has already been spent in the past five years, generating an 18 per cent tax return for the state government. With a dramatic boom in real estate and an unprecedented rise in spiritual tourism, Ayodhya is quickly becoming one of Uttar Pradesh’s biggest drivers of growth. The city has already surpassed iconic destinations such as the Taj Mahal and Varanasi in total tourist footfall. In 2023, Ayodhya recorded 5.75 crore visitors; this surged to 16 crore in 2024 and an astounding 23 crore in just the first six months of 2025. The recently held Mahakumbh Mela also drew massive crowds, further boosting local economic activity.
Tourism currently brings Ayodhya an estimated Rs 10,000 crore annually. This figure is expected to rise to between Rs 18,000 and Rs 20,000 crore by 2028. Uttar Pradesh’s total tourism revenue is projected to cross Rs 70,000 crore by the same year, with Ayodhya contributing nearly one-fourth of the total. Both the central and state governments are jointly investing around Rs 5,000 crore to transform Ayodhya into a world-class global tourism hub. The city’s population, currently around 11 lakh, is expected to exceed 24 lakh by 2031 and rise further to 34 lakh by 2047. Ayodhya’s accelerated growth has also triggered major interest in the real estate and hospitality sectors. In recent months alone, over 70 national and international hotel chains, including Indian Hotels, Marriott, Radisson, and Lemon Tree, have opened or announced projects in the city. The massive tourist inflow has provided significant benefits to local traders, including those involved in food services, puja items, souvenirs, handicrafts, and related businesses.
Ayodhya’s advancement has also strengthened Uttar Pradesh’s green energy profile. The city’s progress in solar installations has helped the state become India’s third-largest solar power producer, behind Maharashtra and Gujarat. Ayodhya leads all 17 smart city projects in the state, and the Yogi Adityanath government aims to make it fully solar powered by 2031. With Uttar Pradesh targeting a trillion-dollar economy, about Rs 89 lakh crore by 2029, Ayodhya is expected to play a significant role in achieving this goal. The city currently contributes 1.5 per cent to the state’s GDP, a figure that is projected to rise sharply in the coming years.
