PHDCCI Welcomes ₹5,000 Cr Emergency Credit Support For Airlines
Share
Welcoming the Government’s announcement, Rajeev Juneja, President, PHDCCI, said, “The Government’s swift intervention through the ?5,000 crore emergency credit scheme demonstrates strong policy responsiveness towards one of the most critical pillars of India’s services economy. Aviation is the backbone of tourism, trade and business mobility and supporting airline stability at this juncture will have a cascading positive impact across the broader economy, including hospitality, travel services and employment generation.”
Anil Parashar, Chair – Tourism & Hospitality Committee, PHDCCI, said, “The recommendations outlined in the PHDCCI Tourism & Hospitality Resilience Report specifically emphasised the importance of financial resilience mechanisms and liquidity support for aviation and tourism stakeholders during periods of geopolitical uncertainty. This announcement is therefore a very positive step towards safeguarding connectivity, sustaining tourism flows and maintaining economic stability across the sector.”
Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI, added, “The current geopolitical situation has highlighted the deep interdependence between aviation connectivity and tourism growth. Timely financial support measures such as this will help airlines maintain operational continuity, preserve consumer confidence and minimise disruptions across the travel ecosystem. Going forward, continued collaboration between government and industry will be essential to strengthen long-term resilience and competitiveness.”
The report also observed that higher operating costs and limited seat availability could impact inbound tourism demand from long-haul markets such as Europe and North America, where travellers are increasingly sensitive to airfare levels and travel duration.
PHDCCI further stated that continued policy support in areas such as ATF cost rationalisation, reduction in VAT on aviation fuel, strengthening travel facilitation mechanisms including e-Visas and improving liquidity support for tourism MSMEs will remain important for sustaining India’s long-term tourism competitiveness.
