AP Chambers Appeals to RBI for Tourism as Priority Sector

Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has submitted a formal appeal to Sanjay Malhotra, Governor of the Reserve Bank of India, advocating for the inclusion of the tourism sector under the Priority Sector Lending (PSL) framework.

AP Chambers highlighted the immense potential of tourism to drive economic growth, create employment opportunities, and contribute significantly to foreign exchange earnings while fostering inclusive development across the nation. In its representation, AP Chambers stated, 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 economic disruptions.

AP Chambers emphasized that the inclusion of tourism under the PSL framework is essential to unlock its potential and ensure its sustainable growth. AP Chambers emphasized that prioritizing tourism under the Priority Sector Lending (PSL) framework would drive 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 progress. AP Chambers noted that strategic financial support would help preserve cultural heritage, promote MSMEs, and enhance India’s global competitiveness.

Highlighting success stories from countries like Thailand and Maldives, the federation urged India to prioritize tourism for sustainable development and to achieve its goal of becoming a $5 trillion economy by 2025. In the letter, the 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 Chambers appealed to the RBI, stating that the inclusion of tourism under the PSL framework would catalyze investments, create jobs, and drive India’s overall growth trajectory. Potluri Bhaskara Rao President