PRICE ANALYSIS OF ḤAJJ: COSTS, SUBSIDIES, INFLATION, AND SOCIAL INFLUENCES IN INDIA

Abstract

The cost of the Ḥajj pilgrimage from India has seen a substantial rise from 2002 to 2024, primarily driven by economic factors like inflation, the introduction of Value-Added Tax (VAT) in Saudi Arabia, currency exchange rates, and the changing value of gold. Inflation has been a major factor, with rising prices and improvement of services like accommodation, transportation, and other essential services in Saudi Arabia, compounded by inflationary trends in India. Additionally, the weakening of the Indian Rupee (INR) against the Saudi Riyal (SAR) has significantly increased the cost of services, as pilgrims need to spend more INR for the same services in Saudi Arabia. While nominal costs have surged, when adjusted against the price of gold, the real value of the Ḥajj has somewhat stabilized, reflecting a lower burden when measured in gold equivalents.