VIJAYAWADA: Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has submitted a formal representation to Sanjay Malhotra, Governor of Reserve Bank of India, advocating for the inclusion of tourism in the Priority Sector Lending (PSL) framework.
AP Chambers highlighted the immense potential of tourism sector to drive economic growth, create employment opportunities, and contribute significantly to foreign exchange earnings, while fostering inclusive development across the nation.
In its representation to the RBI Governor, AP Chambers stated that tourism is a vital component of India’s economy, serving as a major contributor to the 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 economic disruptions.
AP Chambers felt that the inclusion of tourism in the PSL framework is essential to unlock its potential and ensure sustainable growth. It emphasised that prioritising tourism under the PSL framework will result in widespread economic benefits. Tourism stimulates growth in ancillary sectors like transportation, hospitality, and retail, while creating significant employment opportunities, particularly for youth and women. The sector also generates substantial foreign exchange, and supports infrastructure development, benefiting local communities and fostering rural development.
AP Chambers noted that strategic financial support will help preserve cultural heritage, promote MSMEs, and enhance India’s global competitiveness. Mentioning the success stories of countries like Thailand and Maldives, it urged India to prioritise tourism for sustainable development and to achieve its goal of becoming a USD 5 trillion economy by 2025.
In the letter, AP Chambers stated, “Tourism has the potential to transform India’s economic landscape. Inclusion under PSL will ensure affordable credit, and pave the way for sustainable development, aligning with India’s vision of becoming a developed nation by 2047.”
The inclusion of tourism in the PSL framework will catalyse investments, create jobs, and drive India’s overall growth trajectory, said AP Chambers president Potluri Bhaskara Rao, in a statement issued on Thursday.