India's Restaurant Industry Poised for Growth Amid Challenges

India's restaurant sector could create 1.5 crore jobs by 2028 if it receives industry status and GST input tax credit, according to NRAI's Vice President Zorawar Kalra. The NRAI, representing 5 lakh restaurants, faces competition from food aggregators and challenges with existing tax frameworks and service charges.

The restaurant industry in India has the potential to increase employment to 1.5 crore by 2028, rising from the current 85 lakh, if it gains the necessary support from the government, including being granted 'industry' status and input tax credit benefits on GST. This was stated by Zorawar Kalra, Vice President of the National Restaurant Association of India (NRAI) on Wednesday.

The NRAI represents approximately 5 lakh restaurants nationwide and faces disputes with food delivery giants like Swiggy and Zomato. The association argues that the aggregators' move into quick-commerce with private-label brands disrupts fair competition, affecting independent restaurants.

Kalra explained that lacking industry status is a significant issue for the sector, limiting its voice. Additionally, the inability to claim input tax credit under the current GST framework is problematic. The NRAI is in discussions aimed at addressing these challenges, seeking more dialogue with aggregators and resolution of issues to enhance growth prospects.

(With inputs from agencies.)