Include tourism under PSL, AP Chambers appeals to RBI

Update: 2024-12-27 07:03 IST

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Vijayawada: Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has appealed to Sanjay Mal-hotra, Governor of the Reserve Bank of India, advocating for the inclusion of the tourism sector under the priority sector lending (PSL) framework, said president of AP Chambers Potluri Bhaskara Rao.

He highlighted in the appeal the immense potential of tourism to drive economic growth, create employment op-portunities and contribute significantly to foreign exchange earnings while fostering inclusive development across the nation.

He also stated that tourism is a vital component of India’s economy, serving as a major contributor to GDP 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 eco-nomic disruptions. Bhaskara Rao emphasised that the in-clusion of tourism under the PSL framework is essential to unlock its potential and ensure its sustainable growth.

Prioritising tourism under the priority sector lending (PSL) framework would drive widespread economic benefits. Tourism stimulates growth in ancillary sectors like trans-portation, hospitality and retail, while creating significant employment opportunities, particularly for youth and women. The sector also generates substantial foreign ex-change and supports infrastructure development, benefit-ing local communities and fostering rural progress.

The strategic financial support would help preserve cultur-al heritage, promote MSMEs, and enhance India’s global competitiveness. Highlighting success stories from coun-tries like Thailand and Maldives, he urged the RBI to prior-itise tourism for sustainable development and to achieve its goal of becoming a $5 trillion economy by 2025.

He also stated, “Tourism has the potential to transform India’s economic landscape. Inclusion under PSL will en-sure affordable credit and pave the way for sustainable development, aligning with India’s vision of becoming a developed nation by 2047.”

The Chambers appealed to the RBI, stating that the inclu-sion of tourism under the PSL framework would catalyse investments, create jobs and drive India’s overall growth trajectory.

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