Almost a year after the consecration of Ram Lalla at the Ram Mandir, Ayodhya has undergone a remarkable transformation. The once-tranquil pilgrimage city, whose economy was reliant of fairs and religious gatherings, has become a bustling hub of economic activity, with the Ram Mandir serving as both a spiritual beacon and an economic powerhouse. The temple has emerged as a catalyst for the city’s economic resurgence, fostering a wave of growth that touches every sector, from small businesses to hospitality.
“The blessings of Ram ji have not only revived our faith but have also made people financially strong,” said Bhanu Pratap Singh, a local entrepreneur. “People who once relied on bicycles are now buying motorcycles, and some are even purchasing cars. It’s a new Ayodhya, where prosperity is palpable.”
Government figures show that between January 22 and September 30, 2024, Ayodhya welcomed 13.77 crore visitors, surpassing even the Taj Mahal in footfall. By December, the number is expected to cross 16 crore. The influx of pilgrims has set the stage for unprecedented economic activity in the city.
"Ayodhya's transformation from a nondescript town to a bustling city gained momentum after the groundbreaking bhoomi pujan ceremony of the Ram Mandir on August 5, 2020. The subsequent development push has turned Ayodhya into a destination of both spiritual and economic significance," said Ananya Sharma, a local tour operator.
Sharad Kapoor, president of the Faizabad Hotel Association (FHA), described the impact on the hospitality industry: “In last one year almost all the hotels reported 60-70% occupancy. On some important days like Ram Navami or Diwali hotels recorded 100% occupancy,”
The surge has also caught the attention of luxury hotel chains. Marriott International, Sarovar Hotels, Wyndham Hotels, and IHCL’s Taj Hotels and Vivanta brands are among those investing in Ayodhya. “The entry of these brands signals that Ayodhya is now on the global map as a destination of spiritual and economic importance,” Kapoor added.
Local Businesses Thrive
Small vendors and shopkeepers, long the backbone of Ayodhya’s economy, have seen their fortunes soar. Vendors selling Ram Lalla photos, lockets, sandalwood tilaks, and prasad report booming sales.
“I have earned over Rs 5 lakh in the past year just by selling pictures of Ram Lalla,” said Tilak Sharma, a vendor near the temple. “Ram ji ki kripa se, the demand keeps growing. I am now sourcing high-quality pictures from Delhi to keep up the demand.”
Sachin Verma, who sells puja materials, has seen his daily income jump from Rs 300–Rs 400 to Rs 2,500. Similarly, Rajkumar Gupta, who applies sandalwood tilaks for visitors, now earns Rs 500 daily, and Arjun Sahu, a wheelchair operator for pilgrims, reports earnings of Rs 1,200–Rs 1,500 a day.
Roadside eateries have also flourished. From traditional snacks like singhara (chestunut) and peanuts to trendy items like sweet corn, poha, and tandoori chai, vendors have set up shop along every route leading to the temple.
Mukesh Kumar, a prasad seller, said, “I opened my shop in January and earned Rs 3,500–Rs 4,000 daily during the peak period. Even now, I make Rs 1,500–Rs 2,000 a day.”
Ayodhya’s Service Sector Boom
The transformation is not limited to small businesses. National and international brands have established a foothold in Ayodhya. Global food chains like Pizza Hut and Domino’s, along with retail giants like Smart Bazaar and Reliance Trends, have opened outlets. Udupi, a renowned South Indian restaurant chain, has set up shop right outside the Ram Mandir gate to cater to the growing number of tourists.
“The service sector in Ayodhya is leading this economic boom,” said Dr. Srikant S. Asthana, an economist. “The redevelopment plans by the state government, involving Rs 85,000 crore, aim to handle a daily footfall of 3 lakh visitors. This will drive employment and further boost the district’s GDP.”
Dr. Asthana added, “People now have disposable income. They are spending more, upgrading their lifestyles, and investing in better vehicles and homes. This ripple effect is transforming the entire local economy.”
Jobs and Infrastructure Development
Over 1,000 people are directly employed by the Shri Ram Janmabhoomi Tirtha Kshetra Trust, receiving benefits like Provident Fund (PF) and gratuity. The construction boom has also created thousands of jobs in sectors like retail, transport, and food services.
“Ayodhya has become a land of opportunity,” said Prof. Vinod Srivastava, President of the Uttar Pradesh-Uttarakhand Economic Association. “The increase in tourism will create even more jobs in the coming years, contributing to the overall GDP growth of the state.”
New Markets Emerge
A vibrant new market has sprung up along Dantdhavan Kund Road, with shops selling Ramnami Gamchhas, prasad, and souvenirs. Small stalls offering refreshments and food have become a staple, catering to the ever-growing crowd of pilgrims and tourists.
“The transformation is visible everywhere,” said Bhanu Pratap Singh. “Ram ji ki kripa has made Ayodhya a city of prosperity. People have money in their pockets, and they’re spending it on better vehicles, branded clothes, and even luxury items. This is a new chapter for Ayodhya.”
With its blend of spiritual significance and economic dynamism, Ayodhya is fast becoming a model of religious tourism driving urban development. As the city prepares to handle even larger crowds, its transformation is poised to continue.
The Ram Mandir, a symbol of faith and devotion, now also stands as a testament to economic progress, promising a brighter future for Ayodhya and its people.
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