The problem here is that you're looking at this from a very myopic view.
Poverty in india is not going to disappear overnight. In fact a very long time! But in the meantime, the Indian population needs these festivals such as holi, Diwali, Ramadan etc to give the poor a break from their existing problems. These festivals serve as their entertainment while the privileged like us can just pick up and leave or have options for entertainment as and when we choose.
In fact in my view Bollywood/regional film industries similarly are important for India as they provide the necessary entertainment for the under privileged.
I understand why the protests are happening and one cannot just say that on the totem pole of priorities, only the economic front is worth protesting over.
By banning Jallikattu, the govt. is taking away something dear to the people of those regions.
It is important to these people, so please don't trivialize their concerns.
PS: I'm not Tamil, so I have no bull in this race (pun intended), but I can comment as a neutral observer