India’s food delivery platforms generated ₹1.2 lakh crore output in FY24: NCAER-Prosus report

BY - Opportunity India Desk
Editor Dec 21, 2025 /

220 / 3 Min Read

India’s food delivery platforms generated ₹1.2 lakh crore output in FY24: NCAER-Prosus report

Direct employment in the sector rose to 1.37 million workers in FY24 from 1.08 million in 2021–22.

India’s food delivery platform sector generated gross output of ₹1.2 lakh crore in financial year ended on March 31, 2024 (2023–24) and is growing at a pace faster than the overall economy, underscoring its emergence as a significant economic driver, according to a joint report by NCAER and Prosus.

Direct employment in the sector rose to 1.37 million workers in FY24 from 1.08 million in 2021–22. Despite the increase in absolute numbers, employment in food delivery platforms accounted for around 0.2 per cent of India’s total workforce in both periods, the report titled Impact of Food Delivery Platform on the Indian Economy: GDP, Employment and Taxes said.

Between 2021–22 and 2023–24, employment in the sector grew at a compound annual growth rate (CAGR) of 12.3 per cent, significantly higher than the all-India employment growth rate of 7.9 per cent.

The study highlighted strong multiplier effects associated with the sector. For every ₹10 lakh worth of production in food delivery platforms, an additional ₹25 lakh of output was generated across the broader economy in 2021–22. Similarly, every ₹10 lakh of income generated within the sector led to ₹24.8 lakh of income creation economy-wide in 2023–24.

In terms of fiscal contribution, the report noted that for every ₹10 lakh of production in the food delivery platform sector, ₹40,000 was generated in taxes in FY24. On the employment front, the same level of production supported the creation of three jobs across the wider economy. Consumption linkages were also significant, with ₹7 lakh generated in the economy through consumption channels for every ₹10 lakh of sectoral output.

Commenting on the findings, NCAER Professor Bornali Bhandari said the sector’s contribution to output, employment and indirect taxes is expanding at a rate well above that of the broader economy. She added that at the restaurant level, greater market access, improved compliance and stronger operational capabilities signal a structural shift in how food service businesses participate in India’s economy.

A separate report, Impact of Food Delivery Platforms on Restaurants, pointed to tangible benefits for restaurant partners. About 59 per cent of restaurant owners reported expanded access to new customers, while 52.7 per cent introduced new menu items and 50.4 per cent saw an increase in customer volumes.

The share of restaurant revenues derived from food delivery platforms also rose steadily, increasing from 22 per cent to 29 per cent during the 2019–2023 period, the report said.

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India’s food delivery platforms generated ₹1.2 lakh crore output in FY24: NCAER-Prosus report