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

Terrorising the terrorists

One year has passed since the Modi regime applied shock therapy to improve the functioning of the Indian economy through demonetisation on November 8, 2016. Thus, legal tender to rupee notes worth 1,000 and 500 denominations was withdrawn and 86 percent of the currency went out of circulation. It was claim

J&K to get additional electricity during winters

In a bid to meet the increase in electricity demand of Jammu & Kashmir during the winters, the centre has decided to allocate an additional 792 Megawatts to the state. The allocation of power to J&K from central generating stations (CGS) is 2,397 MW. The supply would be given by powe

IOCL, IDCO ink pact to set up plastic park at Paradip

Minister for petroleum and natural gas, skill development & entrepreneurship Dharmendra Pradhan has lauded the state run Indian Oil Corporation and IDCO (Industrial Development Corporation of Odisha) for signing a pact to establish a plastic park at Paradip in Odisha. Pradhan was speakin

RBI mulls whether to shift loan pricing system to external benchmark

An efficient monetary transmission is a sine qua non for the successful pursuit of its objectives by any central bank. Over the past two decades, it has been the endeavour of the Reserve Bank of India to strengthen the monetary transmission process, but these efforts have yet not yielded the desired result

Govt okays deputation of group A officers to TCIL

 The cabinet has approved the proposal for deputation of group A officers of department of telecommunications (DoT) and other ministries with telecommunication and information technology background to Telecommunications Consultants India Ltd. (TCIL). TCIL, a Miniratna PSU, is a premier telec

Indians want more military force in Kashmir: Pew

When it comes to dealing with the disputed border regions of Jammu and Kashmir, the Indian public favours an aggressive stance, said the Pew Research Center, a US based think-tank. A 63% majority believes the government should be using more military force. Few say India should use less force



Video

Gujrat election – 70 candidates in BJP’s first list

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter