The Platform
Latest Articles
by Corentin Barré
by Mirza Abdul Aleem Baig
by Deepak M. Gupta
by Vince Hooper
by Ganesh Ashok Pandit
by Varnika Arun
by Taasha Mistry
by Wonderful Adegoke
by Rezaul Karim Reza
by Samuel Agbelusi
by Corentin Barré
by Mirza Abdul Aleem Baig
by Deepak M. Gupta
by Vince Hooper
by Ganesh Ashok Pandit
by Varnika Arun
by Taasha Mistry
by Wonderful Adegoke
by Rezaul Karim Reza
by Samuel Agbelusi
Is Kumbh Mela an Economic Scam?
03.08.2025
The Kumbh Mela primarily redistributes existing wealth, benefits corporations over local workers, and fails to create lasting prosperity for India’s poor.
The Kumbh Mela, a centuries-old Hindu pilgrimage, is one of India’s most celebrated spiritual and cultural spectacles. Held every 6, 12, and 144 years, it is the largest human gathering on Earth. In 2019, the Prayagraj Kumbh Mela attracted a staggering 120 million pilgrims. This time, Uttar Pradesh’s Chief Minister Yogi Adityanath claims the number could reach an unprecedented 400 million—making it one of the largest religious assemblies in human history.
For the state government, the event is more than a religious congregation; it is an economic engine. Officials tout its $26 billion impact, framing it as a vital force for growth. But in a country where the top 10% control 77% of the wealth while the bottom half holds a mere 5%, the question lingers: Does the Kumbh Mela truly generate wealth, or does it merely redistribute existing resources? And crucially, who benefits?
Yogi Adityanath’s oft-cited $26 billion figure reflects gross economic activity—every rupee spent, from a pilgrim’s 11-cent cup of tea to a $500-per-night luxury tent. But this metric is misleading. Most of the spending at Kumbh Mela is not creating new wealth; instead, it transfers existing savings.
Take, for instance, a small farming family from Bihar that saves $230 over a year to make the pilgrimage. That hard-earned money is spent on train tickets ($60), roadside meals ($35), a modest stay in a temporary shelter ($45), temple offerings ($22), and other miscellaneous expenses ($70). While these transactions are accounted for in GDP calculations, they do not generate new prosperity. Instead, they channel a year’s worth of a farmer’s savings into the pockets of railway operators, street vendors, and temple priests. The family returns home spiritually fulfilled—but financially drained.
A 2022 survey by the Centre for Equity Studies found that 68% of rural pilgrims borrowed money or drew from personal savings to attend, while 40% reported a decline in household income after the pilgrimage. The Kumbh Mela may boost short-term consumption, but it does little to uplift those at the bottom of the economic ladder.
Proponents argue that the Kumbh Mela fuels economic activity, generating employment for street vendors, sanitation workers, and boatmen. While this is true, these jobs are fleeting. A 2019 study by the Prayagraj Mela Authority revealed that 70% of workers hired for the event were unemployed or underemployed within six months of its conclusion.
India’s vast informal sector further mutes the economic impact. With 90% of Kumbh Mela workers lacking access to savings or credit, post-event entrepreneurship remains out of reach. According to a 2019 UNDP study, the multiplier effect of religious tourism in India is 40% weaker than in manufacturing—money circulates briefly but does not lead to sustained growth.
For millions of impoverished pilgrims, the trip is a lifelong aspiration, financed by sacrifices. A 2022 survey by Save the India Foundation found that 60% of attendees earned less than $115 per month, yet spent the equivalent of three to six months’ income to make the journey—many resort to borrowing from moneylenders at predatory interest rates.
Meanwhile, affluent visitors enjoy VIP services: $2,000-a-night tent accommodations, helicopter rides, and exclusive river access. These high-end services inflate economic impact figures, yet their benefits remain concentrated among a privileged few.
The real windfall from Kumbh Mela does not trickle down to the small vendors selling rudraksha beads or brass idols. It flows instead to corporate giants. In 2019, the Adani Group secured a $34 million contract to build temporary bridges and power grids. Local artisans, in contrast, barely scrape by.
A 2019 study by Prayagraj University found that for every $1 spent at the Kumbh Mela, 75 cents went to corporations and intermediaries, 40 cents reached informal workers, and less than 5 cents remained in the local economy over the long term.
The government justifies its massive spending on the event by citing long-term infrastructure benefits. Yet, systemic issues persist. Cities like Prayagraj, Haridwar, and Nashik see temporary upgrades—paved roads, sanitation facilities, and expanded transit—only to return to the status quo once the crowds disperse. A 2023 government audit found that 40% of Kumbh-related infrastructure in Prayagraj had deteriorated within two years of installation.
For the Kumbh Mela to align with India’s broader economic and social equity goals, policymakers must take deliberate steps. Revenue from the event should fund permanent infrastructure—hospitals, schools, and sanitation facilities—that benefit the city’s year-round residents. Small vendors and cooperatives should be prioritized over corporate conglomerates in government contracts. And impact assessments must distinguish between genuine wealth creation and mere wealth circulation.
The Kumbh Mela remains a testament to India’s rich spiritual tradition—a beacon of faith in a nation grappling with inequality. But celebrating its economic impact without scrutiny risks obscuring more profound injustices. Real progress lies not in boosting GDP figures but ensuring that the prosperity flowing through the Ganges reaches everyone, regardless of caste, class, or creed.
Ganesh Ashok Pandit is an LL.B. student at the University of Delhi with a distinction in Economics from Fergusson College. He served as a Privileged Judge for The Queen's Commonwealth Essay Competition (QCEC) 2023 and has experience in legal research, project coordination, and social advocacy.