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The brokerage firm suggests that a substantial $10 billion investment in infrastructure enhancements, including a new airport, upgraded railway station

Ram Mandir to draw 50 million annual tourists, will have significant economic impact: Brokerage Jefferies

<h2>The brokerage firm suggests that a substantial $10 billion investment in infrastructure enhancements, including a new airport, upgraded railway station</h2>

According to brokerage Jefferies, the Ram temple in Ayodhya is anticipated to generate a significant economic impact, transforming the region into a major tourist attraction capable of drawing over 50 million visitors annually. The brokerage firm suggests that a substantial $10 billion investment in infrastructure enhancements, including a new airport, upgraded railway station, township development, and improved road connectivity, could trigger a multiplier effect by fostering the establishment of new hotels and stimulating various economic activities. This development is seen as a potential model for infrastructure-driven growth in the tourism sector.
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Pre-pandemic, tourism significantly contributed $194 billion to FY19 GDP. Forecasts now predict an 8 percent Compound Annual Growth Rate (CAGR), projecting the sector to reach $443 billion by FY 2033. Despite this growth, India's current tourism-to-GDP ratio stands at 6.8 percent, placing it below many large emerging and developed economies by 3-5 percentage points.
The ongoing transformation aims to turn the ancient city into a global hub for religious and spiritual tourism, with the new Ram temple costing $225 million. Jefferies anticipates a surge in tourism, benefiting various sectors such as hotels, airlines, hospitality, FMCG, travel ancillaries, and cement.
Ayodhya's infrastructure development includes the operational Phase 1 of Ayodhya Airport, costing $175 million, and an upcoming international terminal by 2025. The railway station capacity has doubled to accommodate 60,000 passengers daily. Additionally, a 1,200-acre greenfield township and improved road connectivity are in the works.
Jefferies notes that India's G20 presidency provided a unique platform to showcase the country's tourism, attracting thousands of delegates. Forbes ranked India as the 7th most beautiful country in 2022, boasting 42 UNESCO World Heritage sites and a global 6th position. As the world's largest democracy, India stands among the three countries with both hot and cold deserts.

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