Opinion | Yogi’s temple model and the economics of faith

Opinion | Yogi's temple model and the economics of faith

By Prof Anup Mishra

Uttar Pradesh is now reviving this forgotten tradition in a new language. Underlying this approach is Chief Minister Yogi Adityanath’s belief that faith is not an economic burden but a form of capital that, if recognised and nurtured, can become a source of employment, investment and confidence. This approach is as significant from an economic perspective as it is from an ideological one, and deserves to be examined with equal depth. Let us begin with the facts. This is no coincidence. “This is a shift in the economy from graveyards to temples. Chief Minister Yogi Adityanath’s words undoubtedly carry a political edge, but they also reflect a serious proposition: the path to development can run through a society’s own cultural memory. From this perspective, a village temple is a centre of collective memory where people come together, celebrate festivals and experience their shared identity. In rural and semi-urban Uttar Pradesh, temples serve as social and cultural hubs, and strengthening them deepens the government’s connection with the people. Economists call this social capital. Ayodhya offers a compelling example, having witnessed a historic economic surge following the consecration of the Ram Temple. With an average of more than two lakh devotees visiting daily, the hospitality industry has received a major boost. The way forward lies in maintaining this ideological balance. The Uttar Pradesh government is working in this direction. Modern amenities developed at these destinations have strengthened the government’s positive image among the public. The provision allowing every MLA to recommend the upgradation of one to three temples institutionalises this connection with the people.

Instead of treating temples as isolated projects, they should be integrated into pilgrimage circuits so that devotees stay for several days rather than visiting just one destination. Homestays, local handicrafts and regional cuisines should receive further encouragement so that employment opportunities reach an even larger number of local people. More than 950 temples and pilgrimage sites across Uttar Pradesh have been renovated, expanded or reconstructed since 2021, according to government data. More than 650 projects had been completed by 2025, while around 300 were at advanced stages of implementation. There is perhaps hardly any constituency among Uttar Pradesh’s 403 Assembly constituencies where work has not been undertaken at one to five religious sites. The number of domestic tourists has risen from 23 crore in 2017 to 156 crore by the end of 2025. More than 150 new hotels and homestays have been established, while online travel bookings have increased as much as fourfold.

The city has recorded substantial growth in tourism, investment, employment and revenue, according to a detailed case study by IIM Lucknow.

Now consider another dimension of the economy linked to faith. Jobs in tourism are often seasonal and informal. The faith-based economy can become sustainable only when it also provides decent incomes and opportunities to develop skills. Under the Yogi government, this has become possible.

Therefore, the real questions concern expenditure per visitor, length of stay and the income generated locally. The figure of 156 crore tourists includes repeat visitors and one-day travellers.