Restaurant sector is third largest industry among India’s service sectors

The key problems in restaurant sector include multiple taxation, exclusion of liquor from GST, variations in excise policy in different states and limited foreign exchange benefits

yoshika

Yoshika Sangal | July 20, 2016 | New Delhi


#NRAI   #service sector   #Restaurant sector   #Amitabh Kant  
Amitabh Kant launches NRAI`s India Food Services Report 2016
Amitabh Kant launches NRAI`s India Food Services Report 2016

 The National Restaurant Association of India (NRAI) organised an event on Wednesday to launch the ‘NRAI India Food Services Report 2016’ (NRAI IFSR 2016). The chief guest was Amitabh Kant, CEO of NITI Aayog. Commissioned by the NRAI and compiled by Technopak, NRAI IFSR is a comprehensive trade report on the Indian food services sector.

Kant after releasing the report said that the restaurant industry alone will contribute 2.1 percent to the GDP of India by the year 2021. India’s exponential growth and consumption in terms of frequency of eating out and experimentation with cuisines and concepts has given the Food & Beverage services sector such a fillip that it is estimated to be worth $48 billion in terms of overall market size.
 
 “As we see rapid urbanisation in the country, the gastronomical sector is going to boom in India. Restaurant sector is going to have a very big share in growth. The food sector provides highest in manpower requirement in the hospitality sector, and a huge impetus to other sectors like agriculture, food processing, supply chain, logistics, real estate sector etc. Therefore there is an imperative need for a paper that documents the various developmental parameters of the industry,” he said.
 
 He pointed out that the restaurant sector is the third largest industry after retail and insurance in the service sector. The tourism ministry should ensure things are simple and easy for restaurants. This includes getting licenses which is currently very difficult and complex. “We at NITI Aayog will be happy to work with the tourism ministry as it is critical to provide assistance support and facilitation to the restaurant industry,” he added.
 
 Riyaaz Amlani, president, NRAI, said, “The total food services market today stands at Rs 309 lakh crore and has grown at 7.7 percent since the last report in 2013. This is projected to grow to Rs 500 lakh crore. This year alone, the Indian restaurant sector will create direct employment for 5.8 million people and contribute Rs 22,400 crore by the way of taxes to the Indian economy.”
 
Rahul Singh, secretary of NRAI, pointed at some problem areas of the restaurant sector like rising prices of onions and tomatoes, real estate (increasing rent for restaurants), liquor licensing, fat tax, and unpredictable demand of consumers. “The problem of licensing is an old one, going on since the British rule. There should be a registration process rather than licensing procedures. It takes up to 100 working days for restaurant owners to get licenses. Also there is a multiplicity and duplication of licensing at central, state and local levels. There should be a single window licensing system which is completely online and responsive.”
 
 He added that the restaurant sector does not come under one ministry but many like tourism, agriculture and finance and commerce ministries.
 
 The key problems highlighted at the conference were multiple taxation, high tax rates, exclusion of liquor from GST, variations in excise policy in different states and limited foreign exchange benefits.
 
The panelists recommended that there should be an early implementation of GST and that liquor should be included in GST. Not doing so will defeat the very purpose of bringing in a uniform single tax structure and result in double compliance.
 

Comments

 

Other News

BSNL unveils satellite phone service

Minister of state for communications (I/C) Manoj Sinha has launched BSNL’s satellite phone service that will be offered to government agencies in phase one and later opened for others.  While unveiling the new service, Sinha said BSNL works where no other network is present.

Govt to raise Rs 2,360 crore for renewable energy

The cabinet has given it’s green signal to raise bonds of Rs 2,360 crore for renewable energy. The bonds will be raised by the ministry of new & renewable energy (MNRE) through the Indian Renewable Energy Development Agency (IREDA), a Miniratna enterprise, during current fiscal.

CEA’s campaign against ‘poor standards’ finds some success

Chief economic advisor Arvind Subramanian’s campaign for some sense in country ratings has finally found some success. Global rating agency Moody`s Investors Service has downgraded China`s long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook to stable fr

Doubling farmers’ income challenging, yet attainable: Niti Aayog

The low level of farmers` income and year to year fluctuations in it are a major source of agrarian distress. This distress is spreading and getting severe over time impacting almost half of the population of the country that is dependent on farming for livelihood, said a Niti Aayog policy paper.

Governance, development no longer govt’s agenda: Civil society

The civil society has strongly criticized the Narendra Modi government that completes three years in office. Citizens’ Report: Promises and Reality tha

Parody of the health mission

Improving the availability of health workers, particularly at the sub-centre level, has been one of the thrust areas of the national rural health mission (NRHM).  Back in 2005, most of the sub-centres in the country were run by a single auxiliary nurse midwife (ANM). ANMs were overbu



Video

प्रभुनाथ सिंह को हत्याकांड में उम्रकैद की सजा

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter