Is the Statue of Unity an Essential Investment for India?

India's decision to construct the Statue of Unity has sparked considerable debate, with many questioning the necessity of such a large-scale project. While the statue has generated significant public interest, it is important to delve into its details and economic impact to assess its real value.

Details of the Statue of Unity

The Statue of Unity is a towering monument located in Kevadiya, Narmada District, Gujarat. It is a tribute to Shri Sardar Vallabhbhai Patel, a prominent figure in India's struggle for independence and the architect of the modern Indian state. The statue stands at 182 meters (approximately 600 feet), making it one of the world's tallest statues.

The construction of the statue began in October 2013 and was completed in October 2018. The construction was awarded to one of the world's largest construction companies, Larsen and Toubro. The total cost of the project was approximately 2989 crore Indian Rupees, which is equivalent to about 540 billion US dollars in 2013.

The majority of the funds, 1347 crore rupees, were allocated for the actual construction of the statue. Additional funds were utilized for related infrastructure, such as an exhibition hall, a convention center, a bridge, and maintenance for the following 15 years, amounting to 44 crore rupees per year.

The Economic Impact

While the initial cost seems substantial, it is essential to consider the long-term benefits. The statue has not only generated direct economic benefits but also provided indirect benefits through tourism and job creation.

In its first year of operation, the Statue of Unity attracted 29 lakh (29,00,000) visitors and generated 82 crore (820 million) in ticket revenue. Over the years, it is projected to maintain a certain level of revenue and profitability.

A simple calculation reveals that after 20 years, the annual revenue the statue generates would be over 200 crore (2 billion) rupees, considering a 5% growth rate. Even after accounting for maintenance costs, the statue is expected to run at an approximate profitability of 100 crore (1 billion) rupees per year, beginning in 2038.

Moreover, the construction of the statue created employment opportunities for over 3000 permanent workers and 250 engineers, alongside the procurement of 250,000 cubic meters of cement and 25,000 tonnes of steel.

The Tourism and Economic Contribution

Tourism plays a significant role in India's economy, accounting for over 10% of total jobs and generating approximately 250 billion rupees (USD 34 billion) in 2018. The Statue of Unity has the potential to boost this sector significantly, generating both direct and indirect employment.

Directly, the statue will generate thousands of jobs during its construction phase, and indirectly, it will create tens of thousands of jobs through the associated tourism and hospitality industries. The steel and cement industries will also benefit from this significant infrastructure project.

Comparatively, the attention garnered by the Statue of Unity is remarkable. It has received more attention than other substantial development projects in India, such as the under-construction 1-lakh crore Mumbai-Delhi expressway, the 80,000 crore dedicated freight corridor, the 750 crore governmentbuild SVP hospital in Ahmedabad, the 1.2-lakh crore Bullet train, and numerous other critical projects.