Ayodhya as a Laboratory of Dharmic Economics: Integrative Models of Wealth, Welfare and Spiritual Capital

Samdish Sharma (Jaypee Institute of Information Technology, Noida, India)

BJHTCR
Vol. 3 No. 2 (2026): Economic, Social, and Environmental Tourism in Bali

This research explores the relationship among spiritual capital, well-being outcomes, and community prosperity in the context of Ayodhya's urban redevelopment following the construction of the Ram Mandir. The paper suggests a multidimensional framework for development within the broader context of Dharmic Economics, encompassing material welfare, cultural identity, social cohesion, and spiritual well-being. The research is cross-sectional and uses a quantitative research design, with survey data collected from 767 residents between January and March 2025. To evaluate the construct reliability, validity, and structural relationships among the key latent variables, partial least squares structural equation modeling (PLS-SEM) was used with the SmartPLS 4.0 software package. The analytical framework consists of three main constructs: Wealth Index (WI), Welfare Index (WFI), and Spiritual Capital Index (SCI), which account for variation in perceived Overall Community Prosperity (OCP). The results show that spiritual capital and cultural identity are important factors that affect feelings of welfare and community success. Spiritual engagement was shown to be related to life satisfaction, which was mediated by social cohesion and institutional trust. The findings also indicate that spiritual and cultural aspects play a role in community health and wellness, alongside economic factors. The results are also consistent with recent literature that highlights the importance of non-material aspects of capital in creating resilient and inclusive urban communities. The research emphasizes the need to incorporate cultural heritage, community involvement, and spiritual health into urban development and planning for a heritage city. In a culturally meaningful urban context, this could contribute to more inclusive growth, building social cohesion and sustainable welfare outcomes. This paper contributes to the growing literature on spiritual capital and multidimensional development by empirically examining the interconnections among wealth, welfare, and spirituality in a heritage-city context. It positions Ayodhya as a contemporary case of culturally embedded urban transformation in which material and non-material dimensions of development interact to shape community prosperity.