India's food delivery platform sector generated Rs 1.2 lakh cr in gross output in FY€“24: Report

New Delhi, Dec 18 (PTI) India's food delivery platform sector generated Rs 1.2 lakh crore in gross output in 2023-“24 and has been expanding at a rate faster that of the overall economy, thus emerging as a powerful economic engine according to an NCAER-Prosus report.

Direct employment by the sector increased to 1.37 million in 2023-24 from 1.08 million workers in 2021-22.

This formed a 0.2 per cent share of total workers in both 2021-22 and 2023-24, said the report titled 'Impact of Food Delivery Platform on the Indian Economy: GDP, Employment and Taxes'.

Employment in the sector grew at a CAGR of 12.3 per cent between 2021-22 and 2023-24, compared to all-India CAGR of 7.9 per cent, it added.

In terms of multiplier effect, the report noted that for production worth Rs 1 million (Rs 10 lakh) in the food delivery platform sector, it generated production worth Rs 2.05 million (Rs 25 lakh) in the entire economy in 2021-22.

Similarly, for every Rs 1 million (Rs 10 lakh) of income generated in the food delivery food delivery sector, it generated Rs 2.48 million (Rs 24.8 lakh) in the entire economy in 2023-24.

The report further said when it comes to tax multiplier, "for production worth Rs 1 million in the food delivery platform sector, it generated Rs 40,000 in 2023-24." As for employment, the report said, "For production worth Rs 1 million in the food delivery platform sector, it generated 3 jobs in the entire economy in 2023-24." Moreover, "for production worth Rs 1 million in the food delivery platform sector, it generated, Rs 0.7 million in the economy via consumption channels".

Commenting on the findings, NCAER Professor Bornali Bhandari said, "The sector's contribution to output, employment and indirect taxes is not only measurable but growing at a pace far exceeding that of the broader economy." At the restaurant level, she said the evidence of expanded market access, higher compliance and improved operational capabilities points to a structural shift in how food services businesses participate in the economy.

According to another report, 'Impact of Food Delivery Platforms on Restaurants', there have been meaningful gains for restaurants on the food delivery platforms.

As many as 59 per cent restaurant owners reported expanded reach to new customers, while 52.7 per cent added new menu items and 50.4 per cent witnessed an increase in customers, it said.

Restaurants' revenue share from platforms increased from 22 per cent to 29 per cent in 2019-2023 period, the report noted. PTI RKL TRB