Archive · 19 Dec 2025
Food Delivery Sector Drives Economic Growth
A recent study by NCAER and Prosus shows that food delivery platforms in India have grown rapidly, generating ₹1.2 lakh crore in 2023-24.
These platforms provide jobs for 1.37 million people directly and support many more jobs indirectly.
Restaurants using these platforms have seen more customers, higher footfall, and increased revenue.
The platforms also help small restaurants with digital tools and compliance, making their operations more efficient.
However, there are concerns about the working conditions of gig workers, who often work long hours for low pay.
The study suggests that policymakers should recognize the importance of these platforms and include them in national economic tracking.
Industry experts highlight that these platforms are crucial for connecting restaurants with customers and driving economic growth.
Food delivery platforms generated ₹1.2 lakh crore in gross output in 2023-24.
Direct employment by these platforms reached 1.37 million workers in 2023-24.
Each platform-linked job supports more than 2.7 additional jobs across the economy.
Restaurants using these platforms reported reaching new customers and increased footfall.
Platforms have enabled formalisation and operational efficiency for small restaurants.
- Who
- National Council of Applied Economic Research (NCAER) and Prosus
- What
- Study on the impact of food delivery platforms in India
- When
- 2023-24
- Where
- India, across 28 Tier I, II, and III cities
- Why
- To quantify the economic and employment impact of food delivery platforms
Proponents of Food Delivery Platforms
Critics of Food Delivery Platforms
Employment Growth
Proponents of Food Delivery Platforms
Food delivery platforms have significantly increased direct employment, providing jobs for 1.37 million workers in 2023-24, with a CAGR of 12.3%.
Critics of Food Delivery Platforms
The increase in employment hides job distress, with workers often working long hours for low incomes and facing declining wages due to pressure on platforms to generate profits.
Economic Impact
Proponents of Food Delivery Platforms
The sector generated ₹1.2 lakh crore in gross output in 2023-24, with a multiplier effect that supports additional jobs and economic activity.
Critics of Food Delivery Platforms
The economic benefits are offset by the poor working conditions and low wages of gig workers, who often turn to this work due to lack of better employment opportunities.
Worker Conditions
Proponents of Food Delivery Platforms
Food delivery work offers flexible employment and has become a full-time job for many, with improved net earnings due to falling fuel costs and EV adoption.
Critics of Food Delivery Platforms
Workers face abysmally low incomes, long working hours, and continuous cuts in rate cards, making it a less sustainable and desirable form of employment.
- Gross Output
- ₹1.2 lakh crore in 2023-24
- Direct Employment
- 1.37 million workers in 2023-24
- Employment Growth Rate
- 12.3% CAGR from 2021-22 to 2023-24
- Income Multiplier
- 2.48 in 2023-24
- Employment Multiplier
- 3 in 2023-24
- Restaurant Revenue from Platforms
- 29% in 2023, up from 22% in 2019
- Restaurant Benefits
- 59% reached new customers, 50.4% saw increased footfall
- Average Worker Income
- ₹20,000 to ₹25,000 per month
Sources
Food delivery key economic engine; it is now driving jobs and MSME growth
Food delivery key economic engine; it is now driving jobs and MSME growth
India's food delivery platform sector generated ₹1.2 lakh crore in gross output in FY24: Report
Food delivery sees 27% rise in employment, but experts flag a hidden malaise
India’s Food Delivery Platform Sector Emerges As Major Economic Engine, Generates ₹1.2 Lakh Crore Output: Report
Food delivery platforms employed 1.37 million workers, 1.2 lakh crore in GVO in 2023-24 : Report
Why 35% Of Restaurants In India Want To Quit Food Delivery Apps: Survey Reveals
