India’s Chief Economic Advisor (CEA) V. Anantha Nageswaran has cautiously acknowledged the potential economic contribution of the Maha Kumbh Mela to the country's fourth quarter consumption in FY25, even as he underlined the difficulty in assigning a precise number. “It can be said that the Maha Kumbh had a contribution (to consumption in Q4FY25), but to give a precise estimate of the contribution is difficult at this stage,” he said.
The remarks by CEA came while he was addressing a press conference post India's GDP growth announcement. India’s economic growth in Q4 beat estimates after accelerating to 7.4% but it couldn't save the economy from posting its slowest growth since Covid-era in FY25. The economy in 2024-25 hit a four-year low of 6.5 per cent, slowing down sharply from the 9.2 per cent growth recorded in FY24.
Nonetheless, New Delhi’s key officials have backed India’s growth potential and vouched that the country will retain its title as the fastest-growing major economy in the world.
Nageswaran’s comment also comes amid reports estimating that the 2025 edition of the Maha Kumbh Mela facilitated an eye-watering Rs 2.8 lakh crore in economic activity, turning the world’s largest religious gathering into an economic juggernaut.
The report, released by Dun & Bradstreet in April and cited by PTI, paints a staggering picture of consumption. The total estimated economic output includes Rs 90,000 crore in direct spending, Rs 80,000 crore in indirect economic activity, and a further Rs 1.1 lakh crore in induced impacts, driven largely by increased local consumption and economic circulation among vendors, workers, and service providers.
In terms of consumption alone, Rs 2.3 lakh crore of the total was attributed to everyday expenditures — transportation, food, accommodation, and tourism. The remaining Rs 50,000 crore was identified as capital expenditure, with significant outlays on infrastructure to accommodate the surge in footfall.
Transportation emerged as the star contributor, raking in Rs 37,000 crore, with the Indian Railways alone earning Rs 17,700 crore during the festival period. Recreation and spiritual tourism also saw significant gains, with pilgrims spending Rs 10,000 crore on everything from helicopter rides and hot air balloons to yoga sessions and guided tours.
The impact on small businesses was profound: 2 lakh vendors engaged in retail reportedly generated Rs 7,000 crore, while food services added another Rs 6,500 crore. The humble tea and puri stalls thrived, with some tea sellers earning up to Rs 30,000 a day, and puri vendors clocking Rs 1,500 daily in average sales.
Despite these eye-popping figures, the CEA maintained a cautious stance, citing challenges in definitively attributing macroeconomic growth figures to individual events like the Kumbh. “Given that India is a domestic demand-driven economy, private sector investment will continue — but it’s difficult to precisely anticipate how much they will grow amid the tough global environment,” Nageswaran added.
The remarks by CEA came while he was addressing a press conference post India's GDP growth announcement. India’s economic growth in Q4 beat estimates after accelerating to 7.4% but it couldn't save the economy from posting its slowest growth since Covid-era in FY25. The economy in 2024-25 hit a four-year low of 6.5 per cent, slowing down sharply from the 9.2 per cent growth recorded in FY24.
Nonetheless, New Delhi’s key officials have backed India’s growth potential and vouched that the country will retain its title as the fastest-growing major economy in the world.
Nageswaran’s comment also comes amid reports estimating that the 2025 edition of the Maha Kumbh Mela facilitated an eye-watering Rs 2.8 lakh crore in economic activity, turning the world’s largest religious gathering into an economic juggernaut.
The report, released by Dun & Bradstreet in April and cited by PTI, paints a staggering picture of consumption. The total estimated economic output includes Rs 90,000 crore in direct spending, Rs 80,000 crore in indirect economic activity, and a further Rs 1.1 lakh crore in induced impacts, driven largely by increased local consumption and economic circulation among vendors, workers, and service providers.
In terms of consumption alone, Rs 2.3 lakh crore of the total was attributed to everyday expenditures — transportation, food, accommodation, and tourism. The remaining Rs 50,000 crore was identified as capital expenditure, with significant outlays on infrastructure to accommodate the surge in footfall.
Transportation emerged as the star contributor, raking in Rs 37,000 crore, with the Indian Railways alone earning Rs 17,700 crore during the festival period. Recreation and spiritual tourism also saw significant gains, with pilgrims spending Rs 10,000 crore on everything from helicopter rides and hot air balloons to yoga sessions and guided tours.
The impact on small businesses was profound: 2 lakh vendors engaged in retail reportedly generated Rs 7,000 crore, while food services added another Rs 6,500 crore. The humble tea and puri stalls thrived, with some tea sellers earning up to Rs 30,000 a day, and puri vendors clocking Rs 1,500 daily in average sales.
Despite these eye-popping figures, the CEA maintained a cautious stance, citing challenges in definitively attributing macroeconomic growth figures to individual events like the Kumbh. “Given that India is a domestic demand-driven economy, private sector investment will continue — but it’s difficult to precisely anticipate how much they will grow amid the tough global environment,” Nageswaran added.
