Maha Kumbh Mela at Prayagraj, billed as the world’s largest congregation, would be one of the major drivers of consumption demand especially in sectors of specific interest to MSMEs including transport, FMCG and hotels, said industry body Assocham on Tuesday. The six-week spiritual gathering expected to be visited by 400 million devotees, said Assocham, is already witnessing a critical impact not only on the economy of Uttar Pradesh but also across different states.
“While clear data is expected to be shared by state and central organizations at the conclusion of the grand spectacle, a visible impact is seen in sectors including transportation – road, rail and air, hotels, restaurants, roadside eateries, construction and maintenance of civic infrastructure amongst others in terms of brisk demand,” said Manish Singhal, Secretary General, Assocham in a statement.
Singhal said such gatherings create catalysts also in sectors like fast-moving consumer goods, footwear, winter wear, automobile and telecom.
Increased transactions take place across different financial products particularly payment gateways and microfinance in a spiralling way, he said. For instance, devotees may be extended microfinance while eateries would be able to circulate funding fast creating a unique economic opportunity.
“Lakhs of additional man hours will be utilised amongst cab drivers, hotel staff, construction and maintenance workers, utility and security services.”
According to traders’ body CAIT, Mahakumbh is estimated to generate trade worth more than Rs 2 lakh crore and is likely to boost local and the state economy with goods and services worth approximately Rs 40,000 crore anticipated to be supplied from Delhi.
Breaking down the segment-wise revenue expectations, CAIT estimated that accommodation and tourism are expected to generate Rs 40,000 crore trade; Rs 20,000 crore by food and beverage market; Rs 20,000 crore by religious items and offerings such as oil, lamps, Ganga water, idols; Rs 10,000 crore by transportation and logistics; Rs 5,000 crore by handicrafts and souvenirs; Rs 3,000 crore by healthcare services; Rs 1,000 crore by IT and digital services; Rs 10,000 crore by entertainment and media; and more.