Union Budget 2025 | 'Restaurant sector has high expectations from government,' says Sandeep Jain, Founder & MD, Desi Masala

With Finance Minister Nirmala Sitharaman set to present the Union Budget on February 1, 2025, industry leaders are waiting with bated breath to see what the Centre has planned for their respective sectors.

Sandeep Jain, Founder & MD, Desi Masala has noted that over the past few years, the restaurant industry has not only contributed substantially to economic growth but has also been a steadfast source of employment generation, as he expressed that the restaurant sector has high expectations from the government.

"One critical aspect that needs urgent attention has been reinstating input tax credit (ITC) for the industry. The budget needs to revisit the input tax credit on GST for the sector as this would help reduce operational costs and improve profitability. Other key areas include tax incentives, easier credit access, rationalising licences and regulations, and other policy support to promote business growth," he noted.

He also added that another prominent demand of the restaurant sector is industry status, as this will enable them to get financial benefits such as loans at lower interest rates, special schemes, subsidies, fast track clearance processes for licenses etc.

"An industry status to the food service sector will also encourage entrepreneurship. Overall, these measures will definitely boost sustained growth of the restaurant industry, which contributes significantly to economic activity," he believes.

Meanwhile, even the National Restaurant Association of India (NRAI) had earlier this month asked the government to grant industry status to the food services sector while seeking an equitable and fair e-commerce policy to provide a level-playing field to protect restaurants, delivery partners and consumers from potentially exploitative practices of platforms.