Mahakumbh 2025: 'Sangam' Of Faith And Commerce - Rs 25,000 Crore Economic Boom

Beneath the vibrant chaos of the Maha Kumbh Mela in Uttar Pradesh lies a significant economic force, driven by the faith of an estimated 400 million people, who are expected to gather on the banks of the Ganga in Prayagraj starting on January 13.

In the seventh century, Chinese traveller Xuanzang documented the fusion of faith and commerce at the Kumbh Mela, where rulers and wealthy merchants are said to have bathed in the sacred waters and made generous donations.

Photo Credit: PTI

This entrepreneurial spirit continues to shape the modern-day 40-day event, which attracts businesses from across India, transforming this stretch of the Ganga into a vast arena of spirituality and trade, reported the Indian Express.

The Mela is a sprawling, dynamic marketplace where every decision - whether it's setting up a food stall, leasing a tent city, or launching a floating jetty room - carries both opportunity and risk.

Under the leadership of Chief Minister Yogi Adityanath, the BJP government has initiated 549 projects, ranging from infrastructure development to sanitation, for the Maha Kumbh, with a budget of Rs 6,990 crore. In contrast, the 2019 Kumbh Mela had 700 projects costing over Rs 3,700 crore. Officials expect the event to generate Rs 25,000 crore in revenue and have an overall economic impact of Rs 2 lakh crore on the state's economy.

From luxury tents with nightly tariffs of up to Rs 1 lakh to lucrative corporate sponsorships, from the bustling puja market where small traders invest their savings with hopes of a 10-fold turnover to the boatmen of the Ganga, who rely on the event to stay afloat, Kumbh is as much about commerce as it is about faith.

A Festival of Opportunities

The historic city of Allahabad, now known as Prayagraj, has hosted numerous Kumbh Melas - since "anaadi kaal" (time immemorial), as locals say - and undergone many changes, including a name change. This year, as the government rolls out a massive campaign to prepare for what is expected to be a record turnout, the city and its economy hope to benefit from the event.

Officials say the government has focused on maximising the economic impact of the Mela. For the next 40 days, the Mela grounds, spanning 4,000 acres on the riverbanks, will host pilgrims in various types of tents - from basic to luxury - and offer numerous food options through various stalls.

As part of the space allocation process, the state government invited private entities to bid for spots, with the highest bidders being awarded the stalls. The first 50 per cent payment had to be made within seven days of allocation, with the remaining installments due within 45 days.

Additional District Magistrate Vivek Chaturvedi states, "We have received Rs 1-2 crore from each bidder to set up stalls at the Kumbh. The impact is immense."

On the expected large turnout, he added, "We sought the help of Allahabad University to enhance footfall by improving infrastructure. Special corridors have been created to manage an influx of 10,000 to 20,000 pilgrims at once. Floating jetties, water sports, and temple tourism have been introduced to increase the event's appeal while boosting tourism retention."

Professor A K Malviya, Dean of Commerce at the University of Allahabad, who has worked with the UP government to strengthen the economic impact of the Mela, explains, "We conducted a socio-economic impact study of the Kumbh Mela, and the government implemented many of our suggestions. The aim was to make it more tourist-friendly, with improvements in parking, ghat development, polite policing, multilingual signage, and better sanitation at temples."

Regional Tourism Department officer Aparajita Singh adds, "There has been a push to improve hotel infrastructure. We now have 100 homestays registered compared to just 15 last year. There are over 7,000 vendors in the city, 2,000 of whom have undergone skill development training for digital payments. We have set up a team of 1,000 guides and expanded food courts to provide tourists with modern facilities."

Food and hospitality are among the primary drivers of this pop-up economy.

Brothers Mitesh and Ashwin Thakkar, directors of RR Hospitality Pvt Ltd., have invested Rs 12-13 crore to establish food courts and outlets across 14 of the Mela's 25 sectors, employing over 500 workers. Their most expensive outlet was won after bidding Rs 1.23 crore for a food court near the Sangam area.

"We were competing for a tender worth Rs 7 crore but lost out to an amusement park vendor who bid Rs 11 crore," says Ashwin.

So far, they have managed to attract international brands like Starbucks, Coca-Cola, and Domino's and are aiming for a turnover of Rs 100-200 crore. Despite missing out on a contract with McDonald's due to "time constraints," they say they have already reached break-even with sponsorship backing from major brands.

In March last year, the brothers took a boat trip across the Ganga as part of their reconnaissance to scout locations for food stalls at the Mela.

For Mitesh, speed and flexibility are key. "We were planning to set up a food stall near the Dome City (on Arial Ghat near Sangam), but construction is still ongoing, and the main Mela dates are almost here. So, we decided to move our food courts elsewhere," he says.

Space for All

What is truly striking is the investment in accommodation - for the next month and a half, every inch of the Ganga's banks is highly sought-after real estate.

The UP government has set up 1.6 lakh tents, including 2,200 luxury tents, with the remainder being smaller ones along the riverbank. Additionally, there are 218 hotels, 204 guest houses, and 90 dharamshalas across the city.

The super-luxury tents and villas, priced between Rs 18,000 and Rs 20,000 per night, include amenities such as private bathrooms, blowers, Wi-Fi, and even butler service. Premium accommodations, like those at Sangam Nivas Prayagraj on the riverbank, command tariffs of Rs 1 lakh per night for two guests, with en-suite bathrooms, heating, and high-end services. Demand is high, with all 44 super-luxury tents at the property fully booked on auspicious bathing days, according to UP government officials.

The Uttar Pradesh State Tourism Development Corporation (UPSTDC) offers four types of tents - Villa, Maharaja, Swiss Cottage, and Dormitory - with prices ranging from Rs 1,500 per night for dorms to Rs 35,000 for high-end options.

One of the highlights of the Mela stay is the Arial Dome City, operated by Evo Life Space Pvt. Ltd., in collaboration with the UP Tourism Department. Spread across 3.25 acres of riverbank at Arial Ghat, the 44 transparent domes, each 32 sq ft, claim to offer state-of-the-art comfort.

However, with only three days remaining until the Kumbh Mela begins, workers are still putting the finishing touches on the domes. Inside these igloo-like structures made from transparent plastic panels supported by metal frames, violet drapes hang loosely, some pooling onto the artificial grass floor below.

A night in these domes, which includes three meals, a bonfire, and a trip to the Sangam, is priced at Rs 61,000. "We are almost fully booked, but the preparations are still underway. We got the land very late," says Mukesh, who is overseeing the dome construction.

In addition to the tents on the riverbank, hotels near the Mela site, constructed over nine months, charge between Rs 10,000 and Rs 25,000 per night.

Shikhar Keshwani, owner of City Lights Inn, which opened a month ago, says, "Our hotel is 80 per cent booked for the entire month. On important dates, we're fully booked."

Private homestays have also flourished, with investments ranging from Rs 10 lakh to Rs 1 crore to accommodate visitors.

Dayanand Sharma, who spent over Rs 15 lakh on his homestay near Sangam, says, "We hope to triple our turnover. This will cover construction costs and repay the loan."

It's not just middle-class tourists who must pay a premium to stay in Prayagraj. Sadhus, allotted free land by their Akharas, have also complained about rising costs.

Naga sadhu Digambar Bhavani Giri's tent near the Sangam, propped up by poles, has an asbestos sheet roof and walls. He says he spent Rs 10,000 on a green carpet to line the tent and over Rs 2,500 on firewood.

Pancham Giri, another sadhu, shares that his savings of Rs 50,000 are running out quickly. "The government should provide free firewood and carpets. The tents are of poor quality and offer no shelter from the cold," he says.

An Opportunity for All

For businesses large and small, the Kumbh Mela represents both a gamble and an opportunity, where faith, hard work, and market dynamics meet.

Professor Badri Narayan, Director of the Govind Ballabh Pant Social Science Institute (GBPSSI) in Prayagraj, says the Maha Kumbh Mela impacts everyone - from rag-pickers to luxury hotel owners.

"According to estimates, the Kumbh Mela may generate around Rs 200 crore in business this year. Small vendors, informal sector workers, and those offering basic goods and services create temporary livelihoods during the event. Even rag-pickers benefit economically. This is a significant resource," he says.

Mahendra Kumar Goyal, president of the UP chapter of the Confederation of All India Traders, predicts a turnover of Rs 25,000 crore from the event, including Rs 5,000 crore from puja items, Rs 4,000 crore from dairy products, and Rs 800 crore from flowers. The hospitality sector, especially luxury hotels, is expected to generate a combined turnover of Rs 6,000 crore.

Alok Shukla, President of the UP chapter of the Confederation of Indian Industry (CII), describes the Maha Kumbh as a "golden opportunity" for local businesses, with "revenues equivalent to a year's worth of business compressed into two months."

At his food stall near Parade Grounds in the Sangam area, Ashish Mishra says, "For us, it's an opportunity to get orders for the whole year."

From donations to luxury goods, from temporary kiosks to global sponsorships, the Maha Kumbh Mela remains a unique convergence of commerce and devotion.