Divine and Dollar

For more than 1000 years, temples have played a crucial role in the development of India as a nation. A very few people know how temples have actually transformed this beautiful country. I am not talking about the spiritual aspect. That's not my cup of tea. Rather, I am talking about the economics behind the workings of a temple. I always wondered: why would anyone spend millions of dollars on an architectural masterpiece that kept minting money but never paid taxes? I also wondered why evildoers like Allaudin Khilji went after breaking our temples instead of looting some kingdom. Well, I must say. Khilji understood temple economics, and that's what we are going to talk about in today's blog. I request that you all read this blog from an economics perspective and not a spiritual perspective. I don't want this to be my last blog. So, without further ado, let's dive deep into the fascinating history of temples, economics, and economic development. 

India has a rich mosaic cultural heritage where Hindu temples stand as architectural marvels, spiritual sanctuaries, and symbols of the resilience of the Hindu community. The recent Ram Mandir Pratistha has shown how Hindu mandirs are beyond their religious significance as they play a pivotal role in boosting the nation's economic landscape. Hindu temples contribute significantly to local economics and foster community development. Interestingly, living and working in a holy Hindu city is beneficial for everyone from an economic point of view, as mandirs generate income for everyone irrespective of caste, religion, race, and gender. 

Let's consider the ram mandir, for that matter. Before the historic decision of the Supreme Court of India in 2019, where the apex court handed over the disputed land to Hindus to build the mandir, Ayodhya was not a developed city. There were no airports, the railway station was in shambles, and the prices of land were similar to those in a small city. In short, Ayodhya was more of a Tier-2 or Tier-3 city. Yes, the headcount of devotees was good, but it wasn't great enough because of a lack of transport services and an underdeveloped area. When the judgment came in favor of Hindus, the land prices skyrocketed overnight. The state and central government announced several projects to bring Ayodhya back to its lost glory. In less than five years, the airport will be ready and functional in Ayodhya and will soon become an international airport. The railway station got a massive facelift. Roads become broader and cleaner. New residential and commercial projects mushroomed in the city and around it. In short, Ayodhya has become one of the most happening places in India because of one Hindu temple. 

The mandir was constructed using Rs 3500 crore in donations from devotees. Let me explain to you how banks and borrowers benefited from this. As the money is in the bank, the banks will lend it to borrowers in the form of loans. Furthermore, the construction of the mandir was a massive project that gave employment to thousands of construction workers, contractors, and skilled workers. If you heard the speech of the main pujari over there, he said that the rocks and marbles were imported from different parts of India. This gave employment to people from different states, not to mention boosting the logistics sector as well. Now that the mandir is open to the public, people across India and abroad will come to Ayodhya, boosting the local economy. Hotels, restaurants, taxi services, gift shops, guides, and other service providers will generate more income, adding to the local economy. 

As the income of people living in Ayodhya increases, it will result in more taxes for the state, making it possible for the state to spend more on welfare schemes. The influx of religious tourists creates a vibrant economic ecosystem. It provides employment opportunities for the local population and stimulates the growth of secondary industries. 

According to data released by the National Statistics Organization (NSO), 55% of Hindus who travel to religious places stay in mid- and small hotels. Religious travel costs Rs 2717 per day or per person. Social travel costs Rs 1068 per day per person. And educational travel costs Rs 2286 per person. This equates to a daily expenditure of Rs 1316 crore and an annual expenditure of Rs 4.74 lakh crore on religious travel. The temple economy is worth over Rs 3.02 lakh crores, or about $38 billion dollars and 2% of GDP. Flowers, lamps, oil, perfumes, bangles, sindur, images, and puja dresses are all included. The vast majority of unprotected informal labor propels it. It is estimated that travel and tourism alone employ more than 80 million people in India, with a year-on-year growth rate of more than 19% and revenue of more than $234 billion in last year alone. Indian tourists are not that well off. For example, someone living in Pune won't visit the Ram Mandir just because he wants. We won't travel for no reason. But we will definitely visit the mandir if we have some work around and time to spare. 

Whenever a new temple is taken up for construction, a common question is flung across: “What is the need for so many temples? Instead, would it not be better if a new school was constructed?” In reality, a reverse question is worth asking. Today, scores of schools have closed down. Dozens of management institutions stand locked. In many places, there is a shortage of students. In many places, there is a shortage of teachers, and in many places, the teaching staff isn't qualified. Still, if economic output is the criteria, let us proceed on the same track. Ever since the foundation of a temple was laid, hundreds of people have gotten their livelihoods until the construction was complete. After the temple is constructed, several persons’ livelihoods, such as those of poojari, security guards, flower vendors, servants doing cleaning and maintenance work in temples, guards, staff in the offices of temples, etc., depend on the day-to-day activities in the temple.

According to a rough estimate, the number of employees in Jain temples across just Mumbai would exceed 8,000 (the suppliers of various materials to the temples are not included in this count). While the economic benefits of Hindu temples are limitless, it is essential to balance commercialization and preserve the sanity of these sacred places. It is necessary to plan and govern religious places with full transparency. It would be awesome if we could treat a mandir like any other Indian company, generating millions of dollars in profits, undertaking CSR measures, and at the same time, providing serenity. Maybe, someday, the SEBI would allow Mandirs to get themselves listed on the exchanges or create a whole new exchange just for Mandir's to get listed. Just like the BSE SME exchange. Maybe. 

In the years to come, Ram Mandir is expected to contribute more than Rs 25,000 crore to India's trade and tourism sectors. This is me being on the conservative side. Imagine if one Ram Mandir could strengthen the economy with a few thousand crores every year, what would happen if every state got one such temple that shared the same importance, beauty, and economic benefit? 

Happy Investing.