Wednesday, July 20, 2016

Restaurant sector to contribute Rs. 22,400 cr in taxes in 2016


The Indian restaurant industry will contribute Rs. 22,400 crore by way of taxes and create 5.8 million direct jobs in 2016, Indian Food Services Report (IFSR), 2016, revealed today.
The report, prepared by industry body National Restaurant Association of India (NRAI), said the country’s food services market is worth over Rs. 3.09 lakh crore and is estimated to reach close to Rs. 5 lakh crore by 2021.
The report estimates that the restaurant industry will contribute close to 2.1 per cent to India’s GDP by 2021, NRAI Honorary Secretary Rahul Singh said here. “Total food services today stand at Rs. 3,09,110 crore and has grown at 7.7 per cent since our last report in 2013. It is projected to grow to Rs. 4,98,130 crore at a CAGR of 10 per cent by 2021,” NRAI president Riyaaz Amlani said.
He further said, “This year alone, the India 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.”
Releasing the report, Niti Aayog CEO Amitabh Kant 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 have given the F&B services sector such a fillip that the industry is currently estimated to be worth USD 48 billion in terms of overall market size,” he added.
The report also revealed that the organised sector accounts for just 33 per cent of the total market. “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 recognised by the government and it initiates immediate steps to unlock the true potential of this behemoth,” Amlani said.
The report said the industry faces challenges such as high real estate and manpower costs, inadequate supply chain, infrastructure and financing issues, among others.

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