Andhra Pradesh chambers requests RBI to include tourism in its priority sector lending framework

The Andhra Pradesh Chambers of Commerce & Industry Federation (A.P. Chambers) appealed to the Reserve Bank of India (RBI) to include the tourism sector under its Priority Sector Lending (PSL) framework. 

In a letter to the RBI governor on Thursday (December 26, 2024), Andhra Pradesh Chambers president Potluri Bhaskar Rao highlighted the tremendous potential of the tourism sector to drive economic growth by generating employment and contributing to foreign exchange earnings.

He insisted that tourism was a vital component of India’s economy, serving as a major contributor to Gross Domestic Product and a key driver of employment across urban and rural regions. However, the sector has been significantly impacted by challenges such as the COVID-19 pandemic and global economic disruptions. 

Mr. Bhaskar Rao emphasised that the inclusion of tourism under the PSL framework was essential to unlock its potential and ensure its sustainable growth.

“Tourism stimulates growth in ancillary sectors such as transportation, hospitality and retail, while creating significant employment opportunities, particularly for youth and women,” he observed.

He said a strategic financial support to tourism sector would help in preserving cultural heritage, promoting MSMEs and enhancing India’s global competitiveness. 

Highlighting success stories from countries such as Thailand and Maldives, Mr. Bhaskar Rao urged the Central bank to give due priority to tourism for the sake of achieving sustainable development and making India a $5 trillion economy by 2025.

Published – December 26, 2024 04:17 pm IST

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