India’s food delivery platform ecosystem has emerged as a significant contributor to the national economy, generating an estimated Rs 1.2 lakh crore in gross output during FY24, according to a new study by NCAER and Prosus. The sector is expanding at a pace well ahead of the broader economy, underlining its growing role in output generation, employment creation and tax contribution.
The report, titled Impact of Food Delivery Platform on the Indian Economy: GDP, Employment and Taxes, highlights a sharp rise in direct employment. Workforce numbers increased to 1.37 million in 2023–24 from 1.08 million in 2021–22. While the sector continues to account for about 0.2 per cent of India’s total workforce, its employment growth rate stands out. Between 2021–22 and 2023–24, jobs in the segment grew at a compound annual rate of 12.3 per cent, significantly higher than the all-India employment growth rate of 7.9 per cent during the same period.
Beyond direct impact, the study points to strong multiplier effects. For every Rs 10 lakh worth of production generated by food delivery platforms, the wider economy benefited from output worth Rs 25 lakh in 2021–22. On the income side, each Rs 10 lakh earned within the sector translated into Rs 24.8 lakh across the economy in FY24. Tax contributions also scaled alongside growth, with every Rs 10 lakh of production yielding Rs 40,000 in indirect taxes during the year.
The sector’s influence on job creation extends beyond its own workforce. For every Rs 10 lakh of output, three additional jobs were supported across the broader economy in FY24, while consumption-driven spillovers added Rs 7 lakh in economic activity.
NCAER Professor Bornali Bhandari noted that the sector’s rising contribution reflects a deeper structural shift. Restaurants operating on platforms are gaining wider market access, improving compliance and strengthening operational capabilities. A companion study found that 59 per cent of restaurant owners reported access to new customers, over half expanded menus, and platform-led revenues rose from 22 per cent to 29 per cent between 2019 and 2023, reinforcing the sector’s growing economic footprint.
