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Chain and standalone market to contribute Rs 22,400 crore in tax revenue: NRAI IFSR 2016

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India Food Services Report 2016 estimates that the total contribution of the restaurant industry alone will contribute 2.1 per cent to the GDP of India by the year 2021.

Chain and standalone market to contribute Rs 22,400 crore in tax revenue: NRAI IFSR 2016
The total food services market today stands at Rs 3,09,110 crore and has grown at 7.7 per cent since 2013

President, NRAI, said, “The total food services market today stands at Rs 3,09,110 crore and has grown at 7.7  per cent since 2013. This is projected to grow to Rs 4,98,130 crore at a CAGR of 10 per cent by 2021. This year alone, the Indian restaurant sector will create direct employment for 5.8 million people and contribute a whopping Rs 22,400 crore by way of taxes to the Indian economy.” As per the NSDC, restaurants contribute the maximum manpower requirement within the hospitality sector.

The report states that the share of the organized market is just 33 per cent. Expressing distress on this, he remarked, “This is largely due to over regulation of our industry, the complex maze of approvals and licenses required and high tax brackets. It is about time that our industry’s socio-economic impact is recognized by the government, and it initiates immediate steps to unlock the true potential of this behemoth.”

While the food services industry has seen a steady growth over the last three years, the report reveals that the industry has its fair share of roadblocks and challenges like high real estate and manpower costs, inadequate supply chain, infrastructure, financing issues and majorly policy formulation. The main aim of the report is to aid entrepreneurs and investors take informed decisions and unite the industry under one banner.

CEO, , released the report and said, “India has been on a high growth trajectory over the last couple of years. India’s exponential growth and consumption in terms of frequency of eating out and experimentation with cuisines and concepts has given the F&B services sector such a fillip that this industry is currently estimated to be worth US$ 48 billion in terms of overall market size.”

Honorary Secretary, NRAI, said, “Food services market in India has triggered growth across a wide range of ancillary industries, thus providing a boost to the entire ecosystem. Key allied industries which support food services and have benefited from its growth are agriculture and food processing, supply chain and logistics, real estate, kitchen equipment, and commissary.”