The Maha Impact of the Mahakumbh Mela: The Economics of India's Largest Gathering

Abstract

The Mahakumbh Mela, held every 144 years, is among the largest human gatherings on Earth, attracting millions of Hindu pilgrims and spiritual seekers from India and across the globe. This congregation primarily includes ascetics, saints, sadhus, sadhvis, and pilgrims from all walks of life. The Maha Kumbh Mela was held in Prayagraj, Uttar Pradesh, from January 13th to February 25th. Around 400 million people are said to have visited the Mela, making it the world's largest religious gathering and a collective act of faith.

This mass gathering generated significant economic activity, influencing sectors such as tourism, retail, public works, transport, and religious services. This 45-day event single-handedly increased the country’s GDP by 1%. Given the magnitude of its economic footprint, it’s crucial to study the Mahakumbh Mela not just as a cultural or religious phenomenon, but as a temporary economic ecosystem with long-term developmental implications.

This paper aims to explore the multifaceted positive impact the Mela had with a focus on key areas such as tourism, local businesses and MSMEs, infrastructural development, and digital services. The study also delves deeper into the challenges that accompanied these gains—including fiscal strain on public resources, environmental concerns, pressure on civic infrastructure, and the uneven distribution of benefits across stakeholders—while outlining policy recommendations to maximize long-term benefits and improve planning for future large-scale events of similar magnitude.

Introduction

What is the Mahakumbh Mela?

The Mahakumbh Mela is considered the most sacred among the Kumbh Melas and is held after 12 Kumbh Melas (which occur every 12 years). It is believed that bathing in the confluence of the Ganga, Yamuna, and Saraswati rivers in this fair destroys sins and leads to salvation.

In 2025, Prayagraj hosted the 45-day festival (January 13–February 25), drawing 400 million attendees—the largest religious convergence on Earth.

Why is it important to study its economic impact?

Studying the economic impact of the Mahakumbh Mela is crucial because it highlights how large-scale religious gatherings can act as powerful economic catalysts. These events generate significant revenue through tourism, retail sales, infrastructure development, and job creation, while also promoting cultural visibility and regional branding. They provide a unique opportunity to assess the multiplier effect on local economies, the efficiency of public spending, and the long-term benefits of infrastructure investments.

For developing economies like India, such gatherings play a critical role in supporting small businesses, boosting the informal sector, and attracting global attention, creating a lasting economic legacy. Additionally, understanding these impacts helps policymakers plan for future events, balancing economic growth with environmental sustainability and cultural preservation.

Over the Years

Mahakumbh 2025 marked a transformative shift from previous Kumbh Melas, blending scale with smart innovation while preserving deep cultural traditions. Unlike earlier events, it leveraged AI-driven crowd management, facial recognition, UPI-enabled cashless transactions, and real-time health monitoring to manage over 400 million visitors seamlessly. Digital apps, EV transport, and smart infrastructure enhanced the pilgrim experience, while sustainability efforts minimized environmental impact. Yet, rituals, spiritual practices, and the sanctity of the holy dip remained untouched. Mahakumbh 2025 showed how India can honor its ancient heritage while embracing modern technology, creating a safer, more inclusive, and memorable experience for pilgrims from across the globe.

While all these developments happened, there’s also a strong alternate camp which feels that Mahakumbh 2025, though technologically advanced, lost some of its traditional charm. The overwhelming presence of digital tools, surveillance, and structured logistics diluted the spontaneous, spiritual essence of past Kumbhs. For many, the simplicity, chaos, and raw emotional connection of earlier gatherings were replaced by a more sanitized, curated experience. It’s an interesting debate that reflects the need to balance the two worlds—the challenge going forward is to retain this spiritual core while scaling for a digital age.

The table below outlines some key differences observed across previous Kumbh Melas.

Export to Sheets

State of Affairs: Macroeconomic Impact and the Hidden Cost

Macroeconomic Impact

1. Tourism, Hospitality, and Revenue Generation

The Maha Kumbh Mela in Prayagraj gave a substantial boost to the city's tourism and hospitality sectors. Even after the completion of the "amrit snans," millions of devotees still flocked to the city, while demand for hotels, lodges, and luxury cottages remained exceptionally high, the UP government reported.

Reports stated that more than 400 million people visited the Maha Kumbh Mela throughout the 45 days, which is more than 1.5 times the number of tourists who visited the Kumbh Mela in 2019.

Union Culture and Tourism Minister Gajendra Singh Shekhawat, citing an analysis done by the Confederation of All India Traders, said the Maha Kumbh has generated trade worth 360 billion dollars (about ₹3 lakh crore). This unprecedented activity is likely to increase the country's GDP by 1%, and many other far-reaching economic effects will be seen.

Hotels and accommodations, from basic tents to luxurious dome cities, were booked months in advance. Rates ranged from ₹7,000 to ₹1.1 lakh per night. With significant investments in airports, roads, and railways, the hospitality sector earned around ₹40,000 crore.

2. Impact on Local Businesses and MSMEs

The Mahakumbh Mela is a major economic driver, significantly boosting local businesses through religious tourism and trade. Retailers selling daily necessities, religious items, and souvenirs saw increased sales. The Kumbh Mela was a windfall for retailers. Devotees bought daily necessities like groceries, milk products, and edible oils, driving revenue in these sectors. Religious items, souvenirs, and clothing contributed to the ₹20,000 crore turnover, with an additional ₹5,000 crore from handicrafts.

The Maha Kumbh at Prayagraj provided a significant platform for artisans of Uttar Pradesh. Officials estimate a turnover of about ₹35 crore for the handicraft industry during the 45-day fair. After taking a dip in the Sangam, people also visited the 'One District, One Product' (ODOP) exhibition set up across a 6,000 square meter area. The exhibition showcased an array of exquisite handicrafts, including carpets of Kushinagar, zari-zardozi work, Firozabad's glass toys, and Varanasi's wooden toys, among other things.

3. Infrastructural Development

To accommodate the massive crowd, the Uttar Pradesh government allocated more than ₹5,500 crore for infrastructural upgrades, which will leave a lasting impact on the city beyond the festival. This included the construction of 10 new Road Over Bridges (ROBs), flyovers, permanent ghats, and riverfront roads, ensuring smooth and fast movement of devotees. Additionally, temporary roads have been extended by 35% to 400 km, facilitating easier access to the event grounds.

Maha Kumbh Nagar was transformed into a temporary city with thousands of tents and shelters, including luxury accommodations like the IRCTC's "Maha Kumbh Gram." This includes modern amenities, temporary shelters, and dining facilities to cater to the influx of pilgrims. Over 8,000 organizations had set up camps, with 4,500 focused specifically on promoting Sanatan Dharma, creating a spiritually immersive environment for devotees.

Some of the other key investments include:

• Roads & Bridges: Around ₹2,000 crore has been spent on the renovation of roads, construction of 30 pontoon bridges using 3,308 pontoons, and the beautification of major roads.

• Sanitation & Waste Management: The government deployed over 15,000 sanitation workers to ensure cleanliness throughout the event. A comprehensive plan was implemented, including jet spray cleaning systems, septic tanks, and soak pits. Furthermore, 55 vendors were empaneled to provide community toilets, and all sanitation facilities are monitored through QR codes. These measures, in tune with ₹1,200 crore, drastically minimized the need for open-air usage and ensured a hygienic environment for the millions of pilgrims.

• Water & Electricity Supply: ₹1,000 crore

• Security & Crowd Management: ₹800 crore

• Medical & Emergency Facilities: ₹500 crore

4. Advertising and Marketing

During the Maha Kumbh Mela 2025, major Indian brands leveraged the congregation’s footfall to amplify visibility and drive business growth. This boom spanned sectors—hospitality saw full-house bookings; retail sales of Kumbh-themed FMCG and pharma kits soared; EV and tech firms installed charging and digital-payment kiosks; transport operators sold more than 40 million tickets.

Companies like ITC, Hindustan Unilever, and Dabur secured branding rights across ghats, gates, and pilgrim paths, deploying stalls, product sampling, experiential zones, and interactive digital kiosks. Coca-Cola, Bisleri, and Emami launched themed packaging and on-site hydration stations. Reliance Consumer Products and the Adani Group showcased EV charging points and solar kiosks, while Bank of Baroda and digital payments firms introduced transaction booths. SpiceJet promoted pilgrimage travel packages through targeted hoardings and digital campaigns. With ₹3,600 crore invested, these activities significantly boosted consumer engagement and reinforced brand equity.

5. Digital Payments and FinTech

The Mahakumbh is more than a spiritual gathering; it is a testament to India's cultural and logistical prowess. It witnessed a significant transformation in its operations and pilgrim experience thanks to the contribution of digital payments and the fintech sector. With over 400-450 million devotees visiting the city of Prayagraj for this centuries-old festival, robust infrastructure and seamless services have been a top priority for the State Government. This is the first time that the devotees at the Mela have experienced digital services, right from AI technology and apps to chatbots and Google navigation.

Digital payment systems like UPI, mobile wallets, and cashless gateways helped in reducing the reliance on cash and streamlining transactions for pilgrims. Fintechs enabled these contactless payments through UPI QR code-based transactions and Aadhaar-enabled Payment Systems (AePS) services. This eliminated the need for physical debit cards or mobile apps, which many might not have possessed or found challenging to use. Over 75% of all transactionsduring the Mahakumbh were cashless, reducing cash-handling risks and long queues.

Firms such as Paytm and the Uttar Pradesh government partnered to set up over 1,000 "Digital Seva Kendras" to assist pilgrims with recharges, payments, and lodging queries. Razorpay provided backend infrastructure for donation platforms used by religious trusts. Pine Labs offered PoS machines to food courts and retail stalls across the venue with zero onboarding fees during the event. This shift not only enhanced convenience but also reduced the physical handling of currency, ensuring a safer and more efficient happening. Aligned with India's digital economy push, these solutions offer secure, transparent transactions while promoting financial inclusion for those without traditional banking access. As per a survey conducted:

• Digital vendor adoption saw an uptick from 45% to 85% during Mahakumbh.

• There was a 3x increase in the volume of UPI transactions in the Prayagraj region.

• Daily fintech app downloads increased by 200% during the event.

• MSME loan disbursement via fintech increased 3.5x to around ₹180 crore/month during the event.

6. Digital Snan

At the Maha Kumbh Mela in Prayagraj, a man offered a "Digital Snan" service, where devotees who could not physically attend sent their photos, which were then printed and immersed in the holy Triveni Sangam waters. This service, priced at ₹1,100, sparked debate online, with some seeing it as an innovative way to participate in the sacred ritual, while others viewed it as a commercialization of faith.

The service has been described as "Salvation now available on WhatsApp" and has been criticized for potentially mocking religious traditions. The "Digital Snan" service reflected the shift towards digital transactions at the Kumbh, promoting financial inclusion through UPI payments. This not only generated local revenue but also reduced on-ground congestion, easing the strain on physical infrastructure and public services.

Hidden Cost of a Grand Celebration

While Maha Kumbh 2025 was a grand success in many ways, it also brought several challenges that cannot be overlooked. The massive scale of the event led to labor shortages in nearby areas, affecting local businesses and overall productivity. Reports of scams, corruption, and inflated costs surfaced, raising concerns about transparency. Public safety became a growing worry due to the high footfall, and managing crowd behavior was a constant struggle. Additionally, local residents faced disruptions in daily life—ranging from traffic congestion to limited access to public services. These issues highlight the need for more balanced and people-friendly planning.

1. Labor Shortages and Productivity Loss

With many workers leaving for the Mela, especially from nearby regions, businesses faced a shortage of labor, leading to reduced productivity and increased operational costs. This disrupted supply chains, delayed production, and forced companies to pay higher wages to retain staff, impacting overall economic efficiency.

• Key government hospitals were running with approximately a 25% vacancy in doctor positions, impacting emergency and everyday healthcare during peak pilgrim influx.

• Local industries frequently faced labor gaps of 10–35% during large events, driving a 5–8% increase in operational costs.

2. Financial Strain on the Government

The MahaKumbh 2025 led to a significant cash drain in the economy due to increased public spending, high cash usage during the event, and liquidity absorption in informal sectors. A recent report suggested that this large-scale outflow disrupted financial liquidity, prompting calls for the RBI to consider a temporary CRR (Cash Reserve Ratio) cut to ease cash flow and support banking operations.

3. Scams/Frauds

The Maha Kumbh 2025 witnessed not only grand spiritual gatherings but also a disturbing rise in scams and frauds. Several reports highlighted issues such as inflated vendor contracts, ghost workers on payrolls, misuse of funds in sanitation and tent allocations, and fake IDs being used to claim benefits. Some fake NGOs even posed as service providers to siphon government grants. These malpractices prompted authorities to tighten audit trails and initiate inquiries. The scale of the event made monitoring difficult, exposing loopholes in oversight mechanisms and raising urgent questions about transparency and public accountability.

4. Corruption/Misallocation of Funds

Despite the massive scale and significant investments, several issues related to misallocation of funds and potential corruption have been reported. Incidents such as water quality concerns, overspending, and fund misallocation—both unaccounted expenditures and delays in work completion—were reported during audits of the Namami Gange project. Other overspending examples include ₹25 crore for facade lighting of six prominent points in the city and the ₹21 crore water laser show at Kaali Ghat. The lack of stringent financial oversight and transparency in such a large-scale event has also led to a misallocation of resources, with funds meant for long-term development being diverted for short-term gains, ultimately reducing the overall economic benefits of the event.

5. Public Health and Safety Concerns

The massive crowds at the Mahakumbh Mela strained local healthcare systems, requiring substantial public spending on medical camps, emergency response teams, and disease control. Outbreaks of waterborne diseases or respiratory infections reduced labor productivity, increased healthcare costs, and disrupted local businesses, leading to significant economic losses.

Additionally, high security costs, including police deployment and disaster management, added to the financial burden. Accidents and stampedes resulted in costly compensation claims and legal battles, while negative media coverage of health crises damaged the region’s long-term tourism potential, reducing future economic gains.

6. Environmental Degradation

The arrival of millions of pilgrims at the Mahakumbh Mela placed immense pressure on local ecosystems, particularly the Ganges and its surrounding areas. The large-scale disposal of waste—plastic, food, and human waste—led to increased pollution in water bodies, raising the cost of cleanup and waste management for local authorities. This environmental stress not only threatened aquatic life but also had ripple effects on agriculture and fisheries, as polluted water sources affected crop irrigation and fish populations.

The Ganges and Yamuna rivers, revered as sacred, suffered from severe pollution during the event. The Central Pollution Control Board (CPCB) reported alarming levels of fecal coliform bacteria—up to 49,000 MPN/100 ml at Sangam—vastly exceeding the safe bathing limit of 2,500 MPN/100 ml. Notably, the Jondhwal Drain and Sasur Khaderi river exhibited contamination levels approximately 4,000 times higher than permissible, indicating significant untreated sewage discharge.

Long-term damage to soil and water quality can significantly reduce agricultural yields, impacting the livelihoods of farmers in surrounding regions. The additional burden of restoring ecological balance after the event further strained public finances. Moreover, environmental degradation risks diminishing the region’s natural and cultural appeal, negatively affecting future tourism and the associated revenue.

The Way Forward and Policy Recommendations

Despite its overwhelming success, Maha Kumbh 2025 also posed several challenges. Crowd management remained a major concern, with reports of a tragic stampede underscoring the need for better safety measures. Environmental concerns, particularly waste management and water pollution, must be addressed through sustainable policies. Additionally, ensuring the efficient allocation of funds for long-term infrastructure improvements is crucial for maximizing the benefits of such large-scale events.

Policy Recommendations:

• Integrate urban planning with long-term goals: Ensure that investments in roads, sanitation, water supply, and public transport continue to benefit local communities after the event concludes.

• Leverage public-private partnerships (PPPs): Use structured PPP models to enhance waste management systems and ensure post-event asset utilization (e.g., housing, transport hubs).

• Embed technology across operations: Implement digital solutions for crowd control, sanitation tracking, resource allocation, and emergency response to improve safety and efficiency.

• Strengthen financial transparency: Mandate independent audits and ensure transparent budgeting processes to prevent the misallocation or misuse of public funds.

• Promote eco-conscious behavior through awareness: Launch culturally sensitive sustainability campaigns to encourage responsible pilgrim practices, especially around waste and water use.

• Institutionalize learnings from mega-events: Create a national repository of case studies, policies, and lessons from events like the Kumbh to inform planning across states, ministries, and civic bodies.

Conclusion

The Maha Kumbh 2025 became a turning point for Uttar Pradesh, giving a big boost to the state’s economy through tourism, job creation, improved infrastructure, and increased revenue. It showed how a balance between preserving tradition and driving development can bring lasting benefits to people and places. With careful planning and strong teamwork, the event turned into a global showcase of what India can achieve.

Maha Kumbh 2025 will be remembered not just for its scale and spiritual energy, but also for the smooth execution that made it a model for the future. Behind the scenes, countless individuals worked day and night to ensure everything ran well. Their commitment, often unseen, was the backbone of the entire event. This edition raised the standard for future Kumbh Melas, showing how tradition and technology can come together to deliver a meaningful and well-organized experience for millions of pilgrims.

References

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2. UNCED, UNCRD. https://uncrd.un.org/sites/uncrd.un.org/files/12th3r_sa-2-kapoor.pdf

3. Dr. Manoj Kumar Pandey, "Maha Kumbh 2025 and Its Global Appeal: Attracting International Pilgrims and Tourists to Prayagraj."

4. Indian Digital Payments Landscape. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2149372

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8. SPMRF. "Case Study: Economic and Digital Impact of Maha Kumbh on Uttar Pradesh's Economy and Role of the Unsung Heroes." https://spmrf.org/case-study-economic-and-digital-impact-of-maha-kumbh-on-uttar-pradeshs-economy-and-role-of-the-unsung-heroes/

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10. Entrepreneur. "How Fintechs Seized the Day at Mahakumbh." https://www.entrepreneur.com/en-in/news-and-trends/how-fintechs-seized-the-day-at-mahakumbh/487480