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

Seeking religious aid in governance in India

India is known for its old and rich culture, and religion forms a substantial part of it. In India it is hard to find people who categorise themselves as atheists, unless we refer to the matrimonial or dating apps that now have a breed distancing themselves from any religion and categorise themselves as sp

Uneasy calm in riot-torn Delhi

No untoward incidents have been reported from the parts of the capital that witnessed communal riots this week, but the peace Thursday morning was still tentative and a number of those hospitalized for injuries were battling for life. Clashes began Sunday evening and engulfed parts of northe

Modi-Trump show gives India-US ties new dynamism

In the more than 40 hours of stay in India during his two-day visit, US president Donald Trump exhibited his talents as a politician and also a showman with acumen to provide the Indian audience and Americans back home enough opportunity to stay glued to his activities on the Indian soil. Whether it be his

People-to-people relations the real foundation of Indo-US friendship: Modi

On the second and last day of US president Donald Trump’s India visit, prime minister Narendra Modi said the real foundation of Indo-US friendship is people-to-people relations. Trump, meanwhile, sidestepped the contentious issues of the protests against the new citizenship law, telling a joint press

America loves India, America respects India: Trump

America loves India, America respects India, said US president Donald Trump as he and first lady Melania Trump began their short visit of India from Ahmedabad on Monday, welcomed by prime minister Narendra Modi. The US president was in Ahmedabad, in Modi`s home state of Gujarat, to attend th

2020 is crucial for CPSE: Arjun Ram Meghwal

"The year 2020 is going to be a significant year for India and especially for Central Public Sector Enterprises (CPSE), "said the Arjun Ram Meghwal, Minister of State for heavy industries and public enterprises on Wednesday at the 7th PSU Awards and Conference organised by Governance Now on 19th



Archives

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter