Mahakumbh 2025

The Mahakumbh 2025 in Prayagraj, scheduled to attract more than 400 million visitors, is not just a spiritual congregation but also an important economic event. It is anticipated that the retailers and hospitality players are preparing themselves for this event, which is estimated to involve an economic activity of Rs 2-3 lakh crores.

The event's budget for management and infrastructure development is ₹6,382 crore , or 72 percent more than in 2019 Kumbh budget. Expected to attract between 40 and 45 crores devotees, with 80 percent of this number likely to spend between ₹6,000–8,000 each, Confederation of All India Traders (CAIT) expects ₹2 - 2.5 lakh crore ($25–30 billion) in financial transactions over 45 days. It is estimated as ~0.8% of India's GDP.

Maha Kumbh 2025 as its name suggests also explains its growth over the last decade. Tourists are expected to grow by 5x with overall spending on the event expected to grow by 20x when comparing the current festive event with the one held in 2013.

The Uttar Pradesh government has strengthened security measures in preparation for 'Amrit Snan' on key dates .On January 29, 2025, as it is believed that 10 crore pilgrims visited the Maha Kumbh in a single day. So far, more than 15 crore pilgrims (Till 28 Jan) have taken the holy dip during the first 15 days of Maha Kumbh 2025.

Key Dates

On Mauni Amavasya, January 29, 2025, the railways ran special trains every four minutes from Prayagraj stations .The railways operated at least 150 special trains on Mauni Amavasya, which was more than the 85 trains operated in 2019 .

On 29 Jan 2025 , around 10 Crore people were set to visit Mahakumbh but how much is it ?

It’s almost twice the Population of Mumbai + Population of Delhi in 2024 , in just 1/10th the area ! The total area of Delhi in 2024 was 64854 acres and Mumbai was 34000 Acres . Whereas total area of Mahakumbh is just 10,000 Acres .Definitely something special is required to pull off such a mega event.

Historical Trends

As stock markets have a peculiar tendency to often follow seasonal patterns, one such seasonality analysis shows that Sensex has never given positive returns during any of the Kumbh Mela festivals held in the last two decades.

The average loss for Sensex during the last six Kumbh Melas held since 2004 is 3.42% with negative returns during all the festivals, according to an analysis done by SAMCO Securities.

Source : SAMCO Securities

Currently Returns ( 14 Days )

Impact on Industries

The Maha Kumbh 2025 is not just a religious gathering; it's a massive economic event with far-reaching consequences across various sectors. Let's delve deeper into each industry and its specific impact:

1. Tourism & Hospitality: A Surge in Demand

Accommodation: The sheer scale of 400 million pilgrims necessitates a massive increase in accommodation options.Major chains like Indian Hotels (owners of the Taj Group) will see a significant surge in bookings across their properties in and around the Kumbh Mela. Their luxury and mid-range hotels cater to a diverse range of pilgrims seeking varying levels of comfort and amenities.Chains like Lemon Tree Hotels , OYO , FabHotels and numerous smaller, budget-friendly options will be in high demand, accommodating the vast majority of pilgrims seeking more affordable stays.

Temporary Accommodations: The Kumbh Mela will witness a mushrooming of temporary accommodations like tents, camps, and ashrams, offering a range of options for pilgrims seeking basic and affordable lodging.

Transportation:

Railways: Indian Railways (IRCTC) will play a pivotal role, operating special trains to ferry pilgrims from across the country. These trains will require significant logistical planning and coordination to handle the massive influx of passengers.Special trains are being operated to meet the demand. Local tour operators will offer a range of services, including guided tours, sightseeing trips, and cultural experiences, to enrich the pilgrims' journey.

Aviation: Airlines like Indigo, SpiceJet , and Air India will see a surge in bookings for flights to cities near the Kumbh Mela, connecting pilgrims from distant locations.Airports near Mahakumbh are Ayodhya , Allahabad , Lucknow, Varanasi , Gorakhpur .

Road Travel: Road travel will be a significant mode of transportation, with increased demand for buses, taxis, and private vehicles. Companies like Ola and Uber will likely see a surge in ride requests, while intercity bus operators will witness increased passenger traffic.Along with them various state transport buses are providing special packages for Mahakumbh transport.

2. Transportation & Logistics

Infrastructure Development: The Kumbh Mela necessitates significant investment in infrastructure.

Road & Rail: Construction companies like Larsen & Toubro and Adani Group will be involved in projects to improve road connectivity, expand railway lines, and upgrade transportation infrastructure leading to and within the Kumbh Mela area. This includes building new roads, widening existing ones, and improving railway stations and platforms to handle the increased passenger traffic.

Airports: Airports in nearby cities will likely see upgrades to handle increased air traffic.The Directorate General of Civil Aviation (DGCA) approved 81 additional flights in January 2025 The terminal area has been upgraded to manage 1,650 passengers per hour.

Logistics & Supply Chain: The efficient movement of people and goods is crucial.Companies like Blue Dart, Delhivery, and FedEx will play a vital role in transporting goods, equipment, and supplies to the Kumbh Mela site. This includes food, medical supplies, construction materials, and other essential items.Companies providing warehousing and distribution services will be in high demand to store and efficiently distribute goods throughout the Kumbh Mela area.

3. Retail Market

Religious Items: Retailers selling religious items rudraksha, religious books, and devotional music will witness a significant surge in sales.

Handicrafts & Souvenirs: Artisans and vendors selling traditional handicrafts, souvenirs, and local products will benefit from the increased footfall.

Essentials: Companies like Hindustan Unilever (HUL), ITC, and Dabur will see increased sales of packaged food, hygiene products, and daily-use essentials due to the massive influx of pilgrims.

Fashion: Retailers selling traditional clothing, accessories, and footwear will also experience a boost in sales, as pilgrims often purchase new attire for the religious occasion.

Food Services: Restaurants, dhabas, and street food vendors will witness unprecedented demand, catering to the diverse culinary needs of the pilgrims.Shops selling religious items, souvenirs, handicrafts, and local products will experience a significant boost in sales.

4. Infrastructure Development: A Long-Term Impact

Construction & Utilities: The event necessitates significant investments in infrastructure, creating opportunities for construction and infrastructure companies.

Road & Bridge Construction: Building new roads, widening existing ones, and improving road connectivity will be crucial.Construction of new bridges and strengthening existing ones will be essential to facilitate smooth movement of pilgrims and goods.

Sanitation: Improved sanitation facilities, including toilets, water supply, and waste management systems, are crucial for the well-being of the pilgrims and the environment.

Electricity & Power: The Kumbh Mela will require a significant increase in power supply to meet the needs of lighting,Companies like Tata Power and Reliance Power will need to ensure adequate power supply to meet the increased demand during the event. 85 sub-stations have been installed to illuminate the Maha Kumbh area spread over more than 4,000 hectares, officials said. The officials concerned have estimated the electricity consumption during the 45-day event at Rs 30 crore. Nearly 2 lakh units of electricity will be consumed daily, they added.

As many as 52,000 electric poles, 70,000 LED lights and 2016 solar hybrid lights have been installed in the area. The solar hybrid lights, placed along the main roads, are programmed to automatically turn on in the evening and off in the morning.

5. Digital Infrastructure

Telecommunications: Companies providing telecommunications services will need to enhance their network capacity to handle the surge in data usage as millions of pilgrims connect with loved ones and access information.

Digital Payments: With a large number of transactions expected, digital payment platforms like Google Pay, PhonePe, and Paytm will see a significant surge in usage.

Conclusion

Mahakumbh 2025 is set to be a monumental event, attracting millions of pilgrims, boosting tourism, and driving significant economic activity. The stock market is likely to reflect this impact, with key sectors such as hospitality, infrastructure, FMCG, transportation, and healthcare experiencing a surge in demand. Companies involved in hotel chains, airlines, food services, and logistics may see increased revenues, while infrastructure development projects could attract investment interest.

Moreover, government initiatives and budget allocations for the event may provide additional momentum to related industries. Investors looking to capitalize on this opportunity should monitor companies engaged in these sectors and evaluate their growth potential in the lead-up to Mahakumbh 2025. While short-term gains are expected, long-term sustainability will depend on broader economic trends and post-event developments. Overall, Mahakumbh 2025 is not just a spiritual gathering but a significant economic catalyst with far-reaching effects on India's financial landscape.

Sources

The Hindu

Fortune India

DDNews.Gov

Moneycontrol

DeshGujarat

LogisticsInsider

World Population Review

Jagran Josh