India's restaurant sector can create 15 million jobs by 2028: National Restaurant Association of India (NRAI)

India’s restaurant sector has the potential to generate employment for 1.5 crore people by 2028, up from the current 85 lakh, if it receives appropriate policy support, according to Vice President of the National Restaurant Association of India (NRAI), Mr. Zorawar Kalra. Key demands include granting the sector ‘industry’ status and allowing input tax credit (ITC) under the Goods and Services Tax (GST) framework. Presently, restaurants are taxed at 5% GST without ITC or at 18% with ITC, a structure the industry considers restrictive. The NRAI, representing over five lakh restaurants, is also discussing with the government to address this issue— Mr. Zorawar Kalra, who also heads Massive Restaurants Pvt. Ltd highlighted that the lack of ITC is a significant challenge and expressed optimism that it will be resolved soon. Tensions persist between the NRAI and food delivery aggregators such as Swiggy and Zomato, particularly over the latter’s entry into the quick-commerce space with private-label brands, which NRAI claims threatens fair competition. He called for greater dialogue between aggregators and the restaurant industry to ensure mutual benefit, adding that aggregators must understand the sector’s challenges. On the service charge issue—currently subjudice and scheduled for hearing in the Delhi High Court on May 9, 2025—he declined to comment but reiterated that the levy is globally accepted and remains optional. He believes the sector can exceed current employment projections and play a critical role in India's economic growth with the right regulatory support, including industry recognition, GST ITC eligibility, and a balanced relationship with aggregators.