India's food services sector to hit Rs 7.76 lakh cr by 2028: NRAI Report
food services sector is expected to be worth Rs 7.76 lakh crore by 2028 up from Rs 5.7 lakh crore currently, as per a new food services report released Tuesday by the National Restaurant Association of India (NRAI).
As per the India Food Services Report 2024 released by NRAI, the growth of the sector at a CAGR of 8.1% over the next four years will beat the overall GDP growth estimates forecast by RBI. RBI estimates real GDP growth of India at 6.7% in 2024-2025 and 6.5% in 2025-2026. The size of the sector was Rs 4.23 lakh crore in 2019 as per the report and will grow to Rs 6.12 lakh crore in 2025.
It is the third largest industry after retail and insurance and will employ about one crore people in the next four years, up from 85.5 lakh currently.
Among the suggestions and recommendations cited in the report, the industry is seeking a seperate food services industry, an industry status and longer operating hours, even being allowed to operate 24/7, in cities with a 'vibrant' night life. It is also seeking a standardized licence and permit policy across the country.
«Two options for GST slabs, a 12% GST rate with input tax credit, and a current 5% GST rate without input tax credit should be made available to all restaurants. With input tax credit being made available, restaurants will be able to pass on the benefits to the customers,» NRAI stated in the report. It also stated other recommendations also include an 'equitable' e commerce policy and imposing reasonable caps on commissions charged to restaurants and
