India: A Rising Market Poised for Development
By Sanjeev Oak
The Indian economy has received a significant boost from the recent Mahakumbh Mela, with Chief Economic Adviser V. Anantha Nageswaran projecting a growth rate of 7.6 per cent in the fourth quarter of FY 2024. This surge, he said, could help the country achieve an annual growth rate of 6.5 per cent for 2024–25. In parallel, the World Bank has stated that India must maintain a growth rate of 7.8 per cent annually over the next two decades to realise its ambition of becoming a developed nation by 2047.
“The Mahakumbh has acted as a powerful engine for economic expansion and sustainable development,” said Nageswaran.
Held in Prayagraj, the Mahakumbh witnessed the arrival of over 660 million pilgrims, generating substantial economic activity. Spending on travel, lodging, food, handicrafts, and various services surged, catalysing local and regional economies and creating millions of jobs.
Economic Multiplier of a Faith-Based Gathering
The Mahakumbh, held once every 144 years, was not just a spiritual congregation but an economic phenomenon. Pilgrims created an unprecedented demand across sectors — transport, hospitality, food services, and artisanal crafts.
“Over 50–60 crore pilgrims spent freely during the event, significantly stimulating economic activity,” said the CEA.
The third quarter GDP growth was reported at 6.2 per cent, an improvement over the previous quarter’s 5.6 per cent. The January pilgrim influx proved pivotal in sustaining momentum, making the Kumbh a veritable economic catalyst.
Despite criticism from certain quarters questioning the relevance of the Kumbh in the 21st century, its tangible financial outcomes are difficult to ignore. In a country still grappling with economic disparities, such massive public gatherings drive job creation and boost consumption across formal and informal sectors.
Temporary Jobs, Lasting Impact
The event created both short- and long-term employment. From tent workers and food vendors to sanitation staff and transport operators, the demand for human resources skyrocketed.
Additionally, the Uttar Pradesh government, under Chief Minister Yogi Adityanath, implemented 549 infrastructure and sanitation projects worth ₹6,990 crore in preparation for the Kumbh. Experts estimate that the event could generate revenue upwards of ₹25,000 crore, with a total economic impact potentially exceeding ₹2 lakh crore.
“The investments made for the Kumbh will continue to benefit local populations through improved infrastructure long after the pilgrims have departed,” said an official from the state planning department.
Improved roads, public sanitation, water supply, healthcare, and security systems are expected to provide lasting benefits to residents, apart from giving a further push to cultural and religious tourism.
The Road to 2047: Challenges and Aspirations
In its latest outlook, the World Bank has cautioned that for India to attain developed-nation status by 2047, a consistent growth trajectory of 7.8 per cent annually is essential. Any deviation from this path could derail the dream of a fully developed India.
While India has demonstrated resilience and agility post-pandemic — emerging as the world’s fastest-growing major economy — the road ahead is dotted with challenges. Structural reforms and strategic investments in key sectors such as manufacturing, services, and technology remain crucial.
“Economic transformation involves more than just GDP growth; it requires qualitative improvements in living standards, education, health, and infrastructure,” said an economist from the Indian Institute of Development Studies.
India’s demographic dividend — a large and youthful population — presents both an opportunity and a challenge. Skill development, entrepreneurship, and employment generation must go hand in hand.
Building an Inclusive and Resilient Future
The government has introduced several initiatives to bolster self-reliance and reduce import dependence, including the ‘Atmanirbhar Bharat’ programme. Infrastructure investments in transport, energy, and urban development are driving job creation and enhancing productivity.
India’s export strategy, coupled with a supportive monetary policy from the Reserve Bank of India, continues to create a favourable environment for growth.
“India has emerged as an attractive destination for international investors and economic observers. Its resilience post-COVID is being increasingly recognised globally,” said a senior RBI official.
As India transitions from a low-middle-income to a high-income nation, it must simultaneously address income inequality, infrastructure gaps, regulatory hurdles, and environmental concerns. Sustainable development, therefore, remains both a goal and a necessity.