From the inauguration of the Ram Mandir in Ayodhya last year to the ongoing Maha Kumbh Mela 2025 in the sacred city of Prayagraj, Uttar Pradesh, religious tourism has become a significant force within India’s tourism industry. It is emerging as a key growth driver, attracting millions of visitors every year.
During the New Year celebrations in January 2025, religious destinations were the most visited places in India, as reported by CNBC.
In this article, we explore the current landscape of religious tourism in India, government initiatives supporting its expansion, and what this means for investors.
What’s Happening?
Religious tourism in India has witnessed remarkable growth in recent years, with Uttar Pradesh emerging as a leading destination for pilgrims and travellers. The ongoing Maha Kumbh Mela 2025 is a testament to this trend. On the first day alone, over 1.5 crore devotees took a holy dip, according to the Government of India. The event is expected to contribute approximately Rs 2 lakh crore to the economy, as per the Confederation of All India Traders (CAIT).
Uttar Pradesh recorded a staggering 64.90 crore tourists in 2024, reflecting an increase of over 17 crore compared to 2023, according to Tourism and Culture Minister Jaiveer Singh as mentioned in The Times of India. From January to September 2024 alone, UP welcomed a record-breaking 47.61 crore tourists.
Among the most visited sites was Ayodhya’s Shri Ram Temple, which saw 13.55 crore domestic visitors and 3,153 international tourists between January and September 2024, surpassing even the Taj Mahal in Agra, as mentioned in Moneycontrol. By comparison, Agra recorded 12.51 crore visitors, including 9.24 lakh international tourists.
Other religious cities such as Varanasi, Prayagraj, Mathura, and even Mirzapur have experienced substantial growth in visitor numbers. For instance, Varanasi witnessed 6.2 crore domestic tourists and 1.84 lakh foreign visitors. While Mathura attracted 6.8 crore visitors, including 87,229 from abroad
This trend highlights the rising significance of spiritual tourism in India’s broader tourism industry.
Sectors Benefiting from Religious Tourism
- Hospitality & Accommodation: With a surge in visitors, hotels, guesthouses, lodges, and homestays near religious sites are witnessing higher occupancy rates.
- Transportation: Increased travel demand boosts air, rail, and road transportation revenues.
- Tourism Services: Online ticketing platforms, tour operators, and transport services see increased traffic and bookings.
- Food & Beverages: The rising footfall at religious sites fuels demand for packaged food, water, restaurants, and meal services.
Government Initiatives
- PRASHAD Scheme: Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD) was launched in 2014-15 to enhance pilgrimage site development and boost domestic religious tourism.
- Swadesh Darshan 2.0: Focused on developing sustainable tourism destinations, the government has sanctioned Rs 793.20 crore for 34 projects under this initiative.
- Increased Budget Allocation: In the Union Budget 2024-25, the tourism sector saw a 3.3% rise in capital expenditure, with an allocation of Rs 2,479.62 crore, a 58% increase over the past decade.
- RCS UDAN Tourism: The Ministry of Tourism and the Ministry of Civil Aviation have collaborated to launch 50+ new air routes to enhance connectivity to major tourist destinations.
Stocks to Add to Your Watchlist
With the rapid expansion of religious tourism, these companies stand to benefit:
These companies are well-positioned to capitalise on the rising influx of religious tourists in India.
What’s Next?
According to the World Travel and Tourism Council (WTTC), India’s travel and tourism GDP is projected to grow at an average annual rate of 7.1% over the next decade. Religious tourism will continue to play a crucial role in this expansion.
By 2028, the sector is expected to generate $59 billion in revenue while also creating millions of jobs by 2030.
The government’s focus on developing religious sites is set to boost sectors such as infrastructure, hospitality, transportation, and tourism services. With domestic travellers increasingly favouring spiritual destinations, religious tourism presents a massive growth opportunity in the coming years.
*The companies mentioned in the article are for information purposes only. This is not an investment advice.
*Disclaimer: Teji Mandi Disclaimer
