Demand for tourism in concurrent list

Demand for tourism in concurrent list

Subject: Indian economy

Context: The Federation of Hotel and Restaurant Associations of India (FHRAI) has urged the Union government to bring tourism under the concurrent list and to grant the ”industry” status to the hospitality sector in the wake of sector being the biggest causality in Covid-19 led slowdown in economy.

Concept:

• Currently tourism is not specifically mentioned in any of the list provided for by the constitution.
• However, currently it is found in state list as “Pilgrimages, other than pilgrimages to places outside India” is mentioned in the state list. Pilgrimage outside India comes under union list.
• Thus, currently tourism falls in the sphere of states. Earlier also demand for it to be in concurrent list was made (Both centre and state able to make laws with overriding power with the Union), but opposition by many states did not let it happen.
• The demand currently is to ensure recovery of sector by aligning tourism to national agenda.
• States does not want it as tourism has emerged as source of high revenue and employment generation.

Why “Industry” status is demanded?

• Conferring industry status basically entails an inclusion in the State/Central industrial policy.
• Ensure loans at lower interest rates
• Enabling large investors to be financing partners
• Allowing developers refinance their existing debts