PHD Chamber of Commerce and Industry (PHDCCI) expressed appreciation for the government’s approval of a Rs 5,000 crore emergency credit support scheme for airlines under ‘ECLGS 5.0’. Rajeev Juneja, President of PHDCCI, praised the swift intervention, citing it as a crucial step for India’s services economy. The move aims to alleviate financial and operational challenges stemming from the ongoing West Asia crisis.
The President highlighted the significance of aviation in driving tourism, trade, and business mobility. Juneja emphasized that ensuring airline stability during this period would positively impact various sectors like hospitality, travel services, and employment generation. The decision aligns with recommendations from the PHDCCI’s ‘Tourism and Hospitality Resilience Report’, emphasizing the need for targeted support to stabilize India’s aviation and tourism sectors amid geopolitical disruptions.
The report underscored potential impacts on inbound tourism demand due to higher operating costs and limited seat availability. It specifically called for financial resilience mechanisms and liquidity support for aviation and tourism stakeholders during periods of uncertainty. Anil Parashar, Chair of the Tourism and Hospitality Committee at PHDCCI, reiterated the importance of such support measures for the industry’s resilience.
PHDCCI emphasized the necessity of ongoing policy backing, including cost rationalization for Aviation Turbine Fuel (ATF) and VAT reduction on aviation fuel. The organization stressed the importance of strengthening travel facilitation mechanisms and enhancing liquidity support for tourism Micro, Small, and Medium Enterprises (MSMEs) to sustain India’s long-term tourism competitiveness. Dr. Ranjeet Mehta, CEO and Secretary General of PHDCCI, highlighted the critical role of financial support in maintaining operational continuity and consumer confidence in the travel sector.
