Reeling under over-regulation coupled with complex process of approvals and licences, only 33 per cent of the food services industry is organised in India, Riyaaz Amlani, President of the National Restaurants Association of India (NRAI), said here on Wednesday.
"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," Amlani said at the launch of 'NRAI India Food Services Report 2016' here.
The report states that the share of the organised market in India was just 33 per cent.
"The total food services market today stands at Rs 309,110 crore and has grown at 7.7 per cent since our last report in 2013. This is projected to grow to Rs 498,130 crore at a CAGR (compound annual growth rate) of 10 per cent by 2021," he added.
"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," he added.
Speaking at the launch of 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 has given the food and beverages services sector such a fillip that this industry is currently estimated to be worth $48 billion in terms of overall market size," Kant said.
Despite the food services industry's steady growth over the last three years, the report said it 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.
--IANS
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