By IANS,
New Delhi:The Indian restaurant industry anticipates a rapid growth in business in the next five years that will provide employment to about two crore people and provide increased tax revenue to the government, according to a white paper of the National Restaurant Association of India (NRAI) released here Saturday.
“The market size and potential of restaurants are only expected to rapidly grow in the future. By 2030, we would have 350 million (35 crore) people in urban areas. The industry will generate tax up from Rs.1,050 crore to Rs.3,500 crore by 2015 to the exchequer,” said the white paper, read out by Vikram Bakshi, managing director of McDonald’s India.
Bakshi, a past president of the NRAI, said though the industry had a great potential, the government had not given it due encouragement.
“We continue with a lack of infrastructure, including cold chains, power and water supply and other constraints,” he said.
According to the white paper, brought out by management consultancy firm Technopak, the restaurant industry is growing at 5-6 percent per annum and its current revenues amount to Rs.43,000 crore.
“The restaurant industry could be a much larger source of tax revenue to the government if its growth potential is adequately tapped. Additional tax of upto Rs.4,200 crore can be generated by converting unorganised to organised players,” said Samir Kuckreja, NRAI president and managing director of restaurant chain Nirula’s.
The industry has urged the government to allow casinos across the country as these would bring in more revenues.