India's Booming Food Services Sector: A Resilient Post-COVID Comeback

India's food services sector is projected to grow by 8.1% to reach Rs 7.76 lakh crore by FY28, recovering from the COVID-19 pandemic slump. The National Restaurant Association of India (NRAI) highlights the sector's resilience and calls for governmental recognition and support to unlock its full potential.

India's food services sector is expected to grow by 8.1 per cent, reaching Rs 7.76 lakh crore by FY28 from Rs 5.69 lakh crore in FY24, according to the National Restaurant Association of India (NRAI) on Tuesday.

The India Food Services Report 2024 by NRAI forecasted the organised segment to grow at a Compound Annual Growth Rate (CAGR) of 13.2 per cent by FY28.

The sector saw major recovery post the COVID-19 pandemic, moving from Rs 2 lakh crore in FY21 to Rs 5.69 lakh crore in FY24. The NRAI predicts the sector will touch Rs 6.13 lakh crore by FY25, making India the third-largest food services market globally by 2028.

The NRAI President Kabir Suri emphasized the sector's rapid recovery and urged government support to unlock its potential. The sector, being the second largest employer, provided employment to 85.5 lakh people in FY24, projected to increase to 1.03 crore by FY28 with a tax contribution reaching Rs 55,594 crore by 2028.

Nitin Saluja, Chairman of the NRAI Report Steering Committee, called for a dedicated ministry for the sector and reiterated the need for industry status to promote entrepreneurship. He also advocated for simplified licensing policies and longer operational hours for restaurants.

(With inputs from agencies.)