UP in Budget 2026: Inspired by Mahakumbh, Sanatan Arthashastra has been given policy identity in the Union Budget. There is an emphasis on temple tourism, festivity and town-based economy.
Lucknow: The major economic outcomes emerging from the Maha Kumbh and its contribution to the Gross Domestic Product (GDP) have prompted the Central Government to take a fresh look at India’s traditional economic structure. For the first time in the Union Budget 2026–27, India’s eternal economic form – festivity, temple tourism and town-based economy – seems to be getting recognition at the policy level. This is a sign that India’s development journey will no longer be limited to just industry and metros but will move forward by connecting with its cultural and civilizational roots.
Mahakumbh is a big model of economy with faith
According to UPDF President Pankaj Jaiswal, the Mahakumbh successfully organized under the leadership of Chief Minister Yogi Adityanath made it clear that faith-based events are not only religious but are also big economic catalysts. During the Maha Kumbh, hotels, transport, local trade, temporary and permanent employment, health services and logistics came together to form a strong economic ecosystem in the circuits of Prayagraj, Kashi and Ayodhya. This experience helped policy makers understand that faith-based events could boost the economy at the grassroots level.
New strength to towns from City Economic Region
The announcement in the budget to develop Tier-2 and Tier-3 cities as City Economic Regions (CERs) is being considered an extension of Chief Minister Yogi Adityanath’s vision of ‘developed towns’. This scheme will reinvigorate the towns, which have been the backbone of the supply chain of the Indian economy for centuries. The strengthening of towns will directly benefit the farmers, artisans and traders of their surrounding villages. Local products will get market and these towns will emerge as fulfillment centers for big cities. This will strengthen the middle link of the economy and the benefits of development will reach the last person. Uttar Pradesh is the state in the country which has the highest number of towns and urban areas. In such a situation, UP is also likely to get the biggest benefit from the City Economic Region Scheme.
The entry of the word ‘Temple City’ in the budget is a historical sign.
After the economic experience gained from Mahakumbh, the government has used the word ‘Temple City’ for the first time in the budget speech. Historically, temple towns have been major centers of India’s economy. The basis of tourism in India has been religious for centuries, where trade, cultural exchange and social engagement have come naturally with travel. The Prayagraj-Kashi-Ayodhya circuit gave a clear signal to the government that if plans are made keeping the temple towns across the country at the center, then holistic development of thousands of towns and small cities is possible.
UP benefits the most from Sanatan Economics
Uttar Pradesh is likely to benefit the most from the steps taken towards Sanatan Economics in the budget. Major centers of Sanatan and Buddhist traditions like Mathura, Kashi, Ayodhya, Prayagraj, Naimisharanya, Gorakhnath, Hastinapur, Sarnath and Kushinagar are located in UP. Development of tourism, service sector, local products and infrastructure in these areas will provide long-term strength to the state’s economy.
Inland Waterway gives new life to river based economy
The announcement in the budget to further develop the inland waterway between Varanasi and Patna will make the logistics system in UP cheaper and effective. This initiative will rejuvenate the river based economy. Due to UP having the largest network of many rivers including Ganga, Yamuna, Ghaghra, Rapti, the state can play a leading role in road, rail and air connectivity as well as inland water connectivity. This budget is an indication that in the coming years, Uttar Pradesh can become the center of India’s new development model through Sanatan Economics, Town Based Development and Temple Tourism.