Andhra Pradesh Chambers requests RBI to include tourism in its priority sector credit framework

The Andhra Pradesh Chambers of Commerce and Industry Federation (AP 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 Chairman Potluri Bhaskar Rao highlighted the immense potential of the tourism sector to boost the economy by creating jobs and contributing to foreign exchange earnings.

He emphasized that tourism is an important part of India’s economy, serving as a major contributor to the Gross Domestic Product and a major driver of employment in both urban and rural areas. However, the sector has been greatly affected by challenges such as the Covid-19 pandemic and global economic disruptions.

Shri Bhaskar Rao emphasized the need for tourism to unlock its potential under the PSL framework and ensure its sustainable development.

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

He said strategic financial support to the tourism sector would help preserve cultural heritage, promote MSMEs and enhance India’s global competitiveness.

Highlighting success stories from countries like Thailand and Maldives, Shri Bhaskar Rao urged the central bank to give due priority to tourism to achieve sustainable growth and make India a $5 trillion economy by 2025.

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