Ram Mandir unlocks new business opportunities for MSMEs: FIRST India study
The $10 billion investment-based transformation plan for Ayodhya is expected to have a positive multiplier effect, strengthening manufacturing and service-oriented MSMEs, and potentially creating employment opportunities for over 10 lakh people annually.
The unveiling of the Ram Mandir in Ayodhya, Uttar Pradesh has propelled micro, small, and medium enterprises (MSMEs) across India into a fresh era of economic growth, drawing in investments amounting to an impressive Rs 4-5 lakh crore, as per the Forum for Internet Retailers, Sellers and Traders India (FIRST India).
Additionally, FIRST India has highlighted a surge in business prospects, leading to a notable increase in overall business activity. The forum has also documented the return of more than 170 artisans and over 6,000 MSMEs involved in retail, manufacturing, and services, to Ayodhya from various other cities.
The $10 billion investment-based transformation plan for Ayodhya is expected to have a positive multiplier effect, strengthening manufacturing and service-oriented MSMEs, and potentially creating employment opportunities for over 10 lakh people annually. Hospitality chains, consumer goods companies, and food service chains are strategically broadening their footprint in the region, thereby fostering a rise in employment opportunities.
Ayodhya's newfound economic significance is expected to stimulate high growth within a 100-kilometre radius, benefiting a wide range of businesses, including small hotels, homestays, provision and confectionary stores, as well as small food vendors. There's been an increased demand online for products such as temple miniatures, lanterns, puja samagri, idols, stoles, scarves, shawls, diyas, flags, as well as horticulture items like flowers, bhog, and prasad (sweets), not only in India but also from NRIs all over the world.
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As per the announcement, utensil and metal craft shops in the city have experienced a 3X increase in their business. The inflow of visiting pilgrims has resulted in a significant upswing in demand for a wide range of goods and services from local businesses. This surge encompasses an expected enhancement for the region's Geographical Indication (GI) tagged product—the renowned 'Kala Namak rice.' Projections from FIRST India suggest that the additional business generated has already surpassed Rs 55,000 crore and could potentially reach Rs 90,000 crore by the end of the month.
Vinod Kumar, President, India SME Forum, and Trustee, FIRST India, shared his thoughts on this development, stating, “Over Rs 55,000 crore of trade has happened from January 1 till 26—all in the micro and small business (MSE) sector related directly to the Ram Mandir, which has presented a unique opportunity for MSMEs, not only in UP but across the country. As we move forward, it is important that government initiatives help MSMEs scale businesses online through collaborative efforts with ONDC nationally and marketplaces like Amazon and Ebay Internationally, ensuring their continued contribution to the nation's economic prosperity.”
Earlier this month, SMBStory had also spoken to Praveen Khandelwal from Confederation of All India Traders (CAIT) where he mentioned that MSMEs together had crossed Rs 1 lakh crore trade till January 22, on the day of the consecration of Ram Mandir.
Edited by Megha Reddy