Introduction
India has thousands of temples which are not only sites for worship but also powerful economic generators of the country. Being culturally and religiously strong, temples attract millions of pilgrims and tourists every year and generate millions of dollars of offerings, donations, tourism, and business. The economic impact of the temple—much under-estimated—is a primary source of regional economies and, to a considerable extent, forms part of India’s Gross Domestic Product (GDP). With the Indian economy becoming diversified, it is important to consider the under-estimated economic power of India’s religious institutions and the manner in which they contribute to all aspects of economic growth.
Temple Economy: A Hidden Financial Powerhouse
Indian temples as a group administer hundreds of billions of rupees of wealth, some of which are among the wealthiest in the world. Andhra Pradesh’s Tirumala Tirupati Devasthanams (TTD), for instance, reported an estimated income of ₹4,400 crore in FY 2023–24 from donations by donors, sale of tickets, lodging, and selling divine offerings such as laddu prasadam. Others include Shirdi Sai Baba Temple, Vaishno Devi Shrine, Sabarimala, and Padmanabhaswamy Temple, which create astronomical economic streams every year.
Combined, India’s top 1,000 temples are estimated to make more than ₹50,000 crore (some $6 billion) annually in earnings. Although all of this is referred to as donations, the spill-over effect of economic activity that it creates—like hospitality, transport, trade, and tourism—has a humongous impact on the GDP.
Contribution to GDP and Economic Activity
Despite indirect accounting for temple revenues not being done during the calculation of GDP because of their religious, tax-free nature, indirect economic contribution is strong. Tourist arrivals based on temples alone contribute only a paltry 6.7% of India’s overall aggregate GDP as contribution from the hospitality sector, according to India Brand Equity Foundation (IBEF) reports. Religious tourism is a large niche in India’s $250 billion travel and tourism industry and a major growth driver in Tier-II and Tier-III cities.
Temples provide jobs to thousands of people in various capacities—priests, cooks, cleaners, security, administrative staff, and volunteers—and establishing a mini economy within each religious complex. TTD itself, for example, employs more than 20,000 people, and indirectly an ancillary employment base of more than 100,000 in the Tirupati town.
Secondly, infrastructure growth around and in temple towns—airports, hotels, bazaars, roads—bring government revenues as taxes in terms of commercial permits and service tax, even if temples are excluded. Therefore, temples contribute towards the growth of local GDP, enrich local people, and stimulate sustainable business ecologies.
Employment and Entrepreneurship
Temple economy creates jobs, both formal and informal. From flower sellers and handicrafts to taxi drivers and roadside restaurants, the whole chain of economic activity depends on temple centers. For instance, cities such as Madurai, Varanasi, Puri, Ujjain, and Haridwar are economically supported by pilgrim streams.
Temples also promote micro and small businesses. Incense sticks, diyas (lighting), textiles, and crafts with temple connections find good sales during festival periods, most of which are temple-related. Handloom industries in places such as Kanchipuram function extremely well on almost exclusive temple-based demand for silk, which is evidence of robust economic support derived from cultural heritage.
Real Estate and Infrastructure Development
Temple towns have seen heightened real estate activity. With more foot traffic and urbanization, the demand for accommodation, commercial property, and connectivity infrastructure has seen a sharp rise. This has provided high-value investment opportunities and increased state revenues from realty and tourism taxations. Government programs, such as the PRASHAD scheme (Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive), are initiated to improve pilgrimage infrastructure, thus indirectly driving economic growth.
Wealth Management and Financial Potential
Every temple has huge gold, silver, and cash offerings reserves. The Padmanabhaswamy Temple of Kerala, for instance, is said to have over ₹1 lakh crore ($12 billion) worth of treasure. If leveraged and operated transparently by trusts or public-private partnerships, part of these reserves can be utilized for developmental activities—education, healthcare, and sanitation—among temple-related populations.
Furthermore, temple trusts are also currently investing in domestic flow-generating financial instruments and capital formation, including fixed deposits, mutual funds, and infrastructure bonds. It is an arena of untapped financial resources which, if invested ethically and regulated effectively, could be diverted towards nation-building.
Challenges and the Need for Transparency
Though of economic significance, temple economy remains a behind-the-scenes business. Absence of accounting in proper standard, bureaucratic understanding, and spasmodic mismanagement are all contrary to openness. State government administration in most temples in the form of temple trusts is a case of political interference and diversion of resources. Computerization and audit of temple accounting is an hit-or-miss affair.
To induce temples to become more concretely productive as a part of GDP and national development, higher economic openness, online donations, and regulated investment channels must be initiated. Temple wealth schemes for use in public welfare—without abridging religious freedom—can balance religion and fiscal prudence.
Conclusion
India’s temples, though considered traditionally merely religious and cultural institutions, are in fact giant economic forces. Though their direct contribution to the GDP cannot be measured, their indirect contribution in terms of employment, tourism, real estate, and commercial services is massive. If temples are better handled financially and with more strategically created infrastructure, they can even be a stronger propeller of India’s socio-economic growth. As India strives to have a $5 trillion economy, it is only appropriate to locate temple economy within the national economic agenda and responsibly incorporate it for inclusive and sustainable national development.
Prepared by
Dr Balajee Maram,
Professor, School of Computer Science and Artificial Intelligence, SR University, Warangal, Telangana, 506371.
balajee.maram@sru.edu.in
