Union Budget 2026 Formally Recognizes Sanatan Economics, Says UP Development Forum President
In a significant statement, Pankaj Jaiswal, President of the Uttar Pradesh Development Forum (UPDF), has declared that the Union Budget 2026-27 represents a landmark moment by formally recognizing the principles of Sanatan economics. According to Jaiswal, the budgetary measures will play a crucial role in institutionalizing this traditional economic model, which is deeply rooted in India's cultural and civilizational heritage.
Budget Acknowledges India's Traditional Economic Model
Jaiswal emphasized that the budget has given India's traditional economic model — which revolves around festivals, temple tourism, and town-based economies — its first official policy recognition. "The Budget has given India's traditional economic model — rooted in festivals, temple tourism, and town-based economies — its first formal policy recognition," Jaiswal stated. He highlighted that this approach is inspired by the demonstrated economic impact of events like the Kumbh Mela, leading the government to focus on developing Tier-2 and Tier-3 towns and heritage cities.
Focus on Tier-2 and Tier-3 Towns as Economic Drivers
The budget proposes developing Tier-2 and Tier-3 towns as City Economic Regions (CERs), extending the ‘Viksit Town' vision. Jaiswal explained that strengthening these urban centres will have a ripple effect, benefiting surrounding villages, farmers, and artisans. Additionally, these towns are poised to become fulfilment hubs for larger metropolitan areas. "With the highest number of towns and urban centres, Uttar Pradesh stands to gain the most from these initiatives," he added.
Temple Tourism and Heritage Cities at the Forefront
For the first time, the term ‘Temple City' has appeared in a budget speech, underscoring the economic potential of temple towns. Key heritage and religious centres in Uttar Pradesh, such as Mathura, Varanasi, Ayodhya, Prayagraj, Hastinapur, Sarnath, and Kushinagar, are expected to benefit significantly from these measures. Jaiswal pointed to the Kumbh Mela under Chief Minister Yogi Adityanath as a prime example of how faith-based events can serve as powerful economic engines. "The Prayagraj, Varanasi, and Ayodhya circuits boosted local trade, employment, healthcare, logistics, and hospitality, forming a robust economic ecosystem," he noted.
Enhanced Connectivity and Logistics
Jaiswal also highlighted the proposed inland waterway from Varanasi to Patna, which is set to enhance logistics and revive river-based commerce. "With its extensive river network, UP can integrate road, rail, air, and inland water connectivity, emerging as a hub for India's new development model rooted in eternal economics, temple tourism, and town-led growth," he said. This integrated approach aims to leverage Uttar Pradesh's geographical advantages to foster sustainable economic development.
In summary, the Union Budget 2026-27 marks a pivotal shift towards embracing Sanatan economics, with a clear focus on leveraging cultural assets and urban development to drive economic growth. The initiatives outlined are expected to transform Uttar Pradesh into a key player in India's evolving economic landscape, benefiting both urban and rural communities alike.
