India’s food delivery sector has experienced rapid expansion over the past two years, emerging as a significant engine of economic growth and employment, according to two new studies jointly conducted by the National Council of Applied Economic Research (NCAER) and global technology investor Prosus.
The comprehensive research, titled Impact of Food Delivery Platform on the Indian Economy: GDP, Employment and Taxes and Impact of Food Delivery Platforms on Restaurants, analysed input–output data from 640 restaurants across 28 cities, spanning Tier-1, Tier-2 and Tier-3 markets. The findings complete a three-year research programme examining the structural role of food delivery platforms in India’s economy.
Key Economic Growth Metrics
The studies show that India’s food delivery platform sector generated ₹1.2 trillion in gross output during the fiscal year 2023–24, nearly doubling in size compared with the 2021–22 period. This growth rate outpaced overall national economic expansion, highlighting the sector’s rising contribution to GDP.
Direct employment within the sector increased to approximately 1.37 million workers in 2023–24, up from about 1.08 million in 2021–22. The research also revealed strong employment multipliers: each job linked to food delivery platforms supports roughly 2.7 additional jobs across the broader economy.
Impact on Restaurants and Market Access
Beyond macroeconomic indicators, the studies highlighted tangible benefits for restaurants participating in digital delivery ecosystems. Around 59 percent of restaurant owners reported expanded access to new customers, while roughly half said they had introduced new menu items and witnessed increased customer volumes through platform engagement. The share of revenue derived from food delivery platforms rose from 22 percent in 2019 to 29 percent by 2023, underscoring growing reliance on digital channels for business growth.
Policy Implications and Sector Outlook
Experts involved in the research noted that the rapid expansion of food delivery platforms offers insights for policymakers considering digital economy metrics and labour frameworks. The studies point to opportunities for targeted incentives to help small restaurants adopt digital tools and amplify market reach, particularly in smaller cities. They also emphasise the need for regulatory frameworks that balance innovation with protections for workers and small businesses.
As India’s digital infrastructure continues to evolve, the food delivery sector’s growth trajectory underscores its increasing influence on jobs, consumption patterns and economic activity nationwide.
Source: fnbnews