Mahakumbh 2025: Uttar Pradesh Receives ₹500 Crore Economic Windfall, Massive Surge in Tax and Fuel Sales

Mahakumbh 2025: Prayagraj – The 45-day long Mahakumbh 2025, held in Uttar Pradesh, was not just a monumental spiritual gathering but also a significant economic booster for the state. According to government data, in just the months of January and February 2025, a tax collection of ₹239.47 crore was generated directly from sectors linked to the event. Over the entire duration, the state treasury received nearly ₹500 crore in additional GST and VAT revenue.

Kumbh: Not Just a Crowd, But an Economic Powerhouse

Although traditionally seen as a massive religious fair, this year’s Mahakumbh turned into an economic spectacle. The participation of nearly 660 million (66 crore) devotees invigorated Uttar Pradesh’s economy. Prayagraj alone contributed ₹146.4 crore in tax revenue, making it the leading district. However, the economic impact extended far beyond Prayagraj—cities like Varanasi, Ayodhya, and Noida also witnessed a notable surge in tax collections.

A senior official remarked, “Events like Mahakumbh are not just spiritual; their economic dimensions are equally significant. This gathering has proven that religious tourism can be a powerful catalyst for development and revenue generation.”

Revenue Breakdown by Sector

Sector-wise data reveals strong economic performance across multiple industries due to Mahakumbh:

1. Indian Railways: ₹124.6 crore in tax contributions
2. Hotel Industry: ₹7.12 crore
3. Tent and Advertising Sector: ₹9.38 crore
4. Air Travel-related Tax: ₹68.37 crore
5. TDS from Prayagraj-based Enterprises: ₹2.15 crore (with ₹9.3 crore more expected)
6. Municipal Corporation and PWD: Notable tax contributions

In Noida, hotels and online booking platforms contributed ₹12 crore in taxes. Varanasi generated ₹8.42 crore and Ayodhya ₹2.28 crore.

Historic Spike in Fuel Consumption

The unprecedented fuel consumption during Mahakumbh was a clear indicator of the event’s economic dynamism. According to Indian Oil Corporation (IOC):

1. Petrol Sales in January 2025: Rose from 5,253 KL to 7,157 KL
2. Petrol Sales in February 2025: Rose from 6,058 KL to 11,022.5 KL (81.95% increase)
3. Diesel Sales: Increased by 24.56%

IOC operated 123 petrol stations 24x7 along key routes and in Prayagraj, offering facilities like clean toilets, drinking water, air pumps, and first-aid kits.

What Does the Data Say?

Dr. Narendra Nath Mehrotra, economist at Allahabad University, said, “The sharp spike in petrol usage indicates that a large number of devotees traveled in private vehicles. It reflects increasing participation of the middle class in such events.”

He added, “Families from faraway states like Maharashtra, Gujarat, and Delhi drove themselves. This trend showcases not just religious fervor but a mindset of self-reliant travel.”

Lifeline for Small Businesses

The economic impact wasn’t limited to formal sectors. Small dhabas, budget hotels, fuel stations, and local vendors in Prayagraj, Ayodhya, Varanasi, and along highways benefited immensely from the influx of travelers. While these gains may not be visible in tax records, their on-ground economic impact was substantial.

Government Planning and Vision Pay Off

A senior official from the State Planning Department stated:

“Mahakumbh is no longer just about faith. It has become the economic backbone of the state. It showcases Uttar Pradesh’s capabilities in infrastructure, logistics, and administrative management on a global stage.”

Pre-event infrastructure upgrades—such as road expansions, hotel enhancements, traffic systems, and sanitation projects—not only made the event seamless for visitors but also economically profitable.

Key Figures at a Glance

1. Total Additional GST/VAT Revenue: ₹500 crore
2. Tax Collection from Prayagraj (Jan–Feb 2025): ₹146.4 crore
3. Railway Tax Contribution: ₹124.6 crore
4. Petrol Sales Growth (Feb 2025): 81.95%
5. Diesel Sales Growth (Feb 2025): 24.56%
6. Total Fuel Sales Growth (Jan–Feb 2025): 11,809 KL
7. Tax from Air Travel: ₹68.37 crore
8. Revenue from Varanasi: ₹8.42 crore
9. Revenue from Ayodhya: ₹2.28 crore

Mahakumbh 2025 has proven that spiritual gatherings and economic development can go hand in hand. From massive public participation to sharp administrative execution, the event has elevated Uttar Pradesh socially, spiritually, and economically. It now stands as a shining example of how religious tourism can become a pillar of sustainable economic growth.