Voices from Kashi – How Tourism, SMEs and MSMEs are Powering Purvanchal’s Growth

When you wander through Varanasi’s narrow lanes, the scent of incense mingles with the hum of bustling workshops – a testament to a city that is quietly reinventing itself. As the city celebrates its ancient heritage, a new engine of growth is humming louder: tourism, backed by a vibrant network of small and medium enterprises.

"Tourism has grown at a pace we never imagined a decade ago," says Rajendra Goenka, National Vice‑President of the All India Federation of Traders, Varanasi. He points to the glittering Banarasi silk sarees that now flood markets far beyond Uttar Pradesh, while noting that artisans who make minakari work, wooden toys and even artificial pearls are still waiting for their share of the limelight.

Banking voices echo the optimism. Mithlesh Kumar, General Manager of Bank of Baroda in Varanasi, observes that demand for credit among MSMEs has risen steadily, especially for firms in hospitality, food processing and renewable‑energy components. "Our loan book is swelling because entrepreneurs see real opportunities," he adds.

Across the table, Lanka Ramesh, Assistant General Manager at Canara Bank, stresses that the city’s industrial parks are becoming magnets for engineering, packaging and agro‑based units. "Strategic location, easy access to raw material corridors and improved road, rail and inland‑waterway connectivity are the main draws," he explains.

Numbers, though sometimes quoted with a hint of pride, paint a striking picture. According to the bank’s internal estimates, Varanasi alone contributed close to ₹1.3 trillion to India’s GDP and welcomed a record 72.6 million tourists in 2025. Whether every visitor is logged correctly is debatable, but the trend is unmistakable: more people, more money, more business.

The consensus among the round‑table is clear – Purvanchal needs a dedicated tourism board. Such a body could package the region as a seven‑ to eight‑day circuit, weaving together not just Varanasi but also Prayagraj, Mirzapur, Sonbhadra, Gorakhpur and the historic site of Kushinagar. "A multi‑day itinerary would keep the tourist spend flowing across the region, rather than concentrating it in one city," Goenka suggests.

For SMEs, this broader vision is welcome news. Hospitality providers would see longer stays, local food processors could supply fresh meals for tour groups, and transport firms would benefit from intra‑regional shuttles. Meanwhile, artisans could tap into new demand for authentic souvenirs, especially if the tourism board promotes niche crafts in its marketing material.

All three speakers agree that the momentum must not be allowed to fizzle out. They call for better last‑mile infrastructure, skill‑development programmes tailored to tourism‑linked jobs, and a streamlined credit‑disbursement process for micro‑enterprises. "If we can align policy, finance and promotion, Purvanchal could become the next big tourism‑SME hub in India," says Kumar.

In short, Varanasi’s age‑old ghats are now sharing the stage with modern factories and co‑working spaces. The city’s future, it seems, will be written not just in ancient verses but also in the stories of entrepreneurs turning the tide of growth for the entire Purvanchal belt.