Food Delivery Platforms: The New Economic Powerhouse in India

India's food delivery platform sector contributes significantly to economic growth and employment, with a report showing increased output, jobs, and tax revenues. The 2023-24 period saw 1.2 lakh crore in gross output and 1.37 million direct jobs. Restaurants also benefited from expanded reach and revenue growth.

In a striking revelation, India's food delivery platform sector has emerged as a substantial economic force, generating Rs 1.2 lakh crore in gross output for the 2023-24 fiscal year, as per the recent NCAER-Prosus report. Notably, this sector's growth surpasses the overall economic expansion.

The sector's direct employment soared to 1.37 million, up from 1.08 million in 2021-22, marking a 0.2% share of the total workforce, even as it outpaced the all-India employment growth rate with an impressive 12.3% CAGR.

Furthermore, the report highlighted the sector's multiplier impact, where Rs 1 million in production generated Rs 2.05 million in the economy. For the same production value, it contributed Rs 40,000 in taxes and created three jobs in 2023-24. The restaurant industry's market access and operational improvements reflect a broader structural shift.

(With inputs from agencies.)