In India, pilgrimage tourism is a major force behind both economic growth and cultural preservation, especially in Tamil Nadu, which is home to some of the most well-known holy sites in the nation, including Madurai, Rameswaram, Palani, and Thiruvannamalai. With an emphasis on the trading opportunities it creates in both rural and urban settings, this study investigates the relationship between pilgrimage tourism and indigenous entrepreneurship. The study shows a significant correlation between visitor influx and business growth, based on primary data from 100 indigenous entrepreneurs and statistical methods including the Chi-square test, independent samples t-test, and ANOVA. Compared to rural pilgrimage destinations, urban cities provide higher and more reliable commercial potential since they have stronger infrastructure and policy support. The results highlight the critical need for inclusive tourist policies that support regional crafts, improve rural infrastructure, and incorporate sustainability and innovation into native trade practices. The report provides evidence-based recommendations to promote equitable and culturally sensitive economic growth in pilgrimage zones by highlighting the imbalance between urban and rural areas and the transformative potential of pilgrimage tourism.