The Economics of Religious India

India is a country filled with diverse cultures, languages, and religions so it is called a secular country. The multiple religions practiced in India, the conflicts which arise due to it, and the constant panic-harmony situations caused by it have intrigued me a lot which also led to further inquisitiveness about how religious India affects the economy of the country.

As a to-be economist, the question arises do these religions create a hindrance in the path of development or positively influence the economy arises in my mind.

To evaluate this, various economic theories and statistical tools are used by eminent researchers and economists. They note that the economy of a country is either adversely affected or positively influenced because of various factors, and religion is prominently one of them. Sriya Iyer, the author of the book ‘Economics of Religion’ explains the religion factor through the demand and supply theory wherein religion is considered to be the economic market, demand is created by disciples or worshippers, and the supply comes up from the church, temple, mosque deity, and its organizations.

According to the studies between the year; 1958-2018, GDP per annum progressed twenty-six times, but it could have increased if Indians were less rigid in their religious views. The efficient utilization of resources doesn’t take place as there is a huge amount of diversion of resources to the religious sector. Furthermore, various other aspects like net effect, social capital aspect, and impact of religious organizations affect the economy of the nation. The National Sample Survey Office reported that people from the rich, as well as the poor sector of India, pay out more money on religious things than on hygiene.

On the other hand, few researchers have also claimed that religion acts as a catalyst, positively altering the economy of the country as religious practices nurture human capital leading to a triumphant economy. Also, the revenue incurred from various religious organizations and in the case of India the religions practiced exceeding more than one which creates greater revenue generation.

Hence, by considering both sides of the coin, it is quite evident that religion hugely affects the economy of our nation adversely as well as favorably. The University of Bristol and the University of Tennessee USA stated that if there is a huge deal of material development in the country then the religious aspect gets sidebar but the prominent question still lies, will it be possible as more than half of the masses in India keep a strong faith in the deity and this overpowers everything!!!!

 By- Sharvi Mulay
        SY BSc Economics 
        MIT-WPU