India’s food delivery platform sector emerged as a major economic engine in fiscal year 2023-24, generating an estimated ₹1.2 lakh crore in gross output and expanding at a pace outstripping the broader economy, according to a joint report by the National Council of Applied Economic Research (NCAER) and Prosus.
The report highlights that the rapid rise of app-based food delivery services, led by platforms such as Zomato, Swiggy, and a growing number of regional players, is not just facilitating convenience for consumers but also driving sizeable economic activity. Services offered by these platforms encompass restaurant orders, logistics, payments, and technology services that have a multiplier effect across related sectors such as food production, hospitality and logistics.
In addition to the large gross output figure, the sector has been a significant employment generator. Direct jobs in the food delivery ecosystem increased sharply over the past two years, rising to approximately 1.37 million workers in FY24 from around 1.08 million in FY22, an increase of more than 27%.
The size of the sector’s output underscores its role in supporting restaurant revenues, delivery-partner incomes, and technology-related services. Beyond direct order fulfilment, food delivery platforms have helped many restaurants expand their reach to new customers and markets, often enabling smaller and independent eateries to participate in the organised food ecosystem.
The growth of the sector also aligns with broader trends in organised food services: research from industry bodies shows the Indian food services market, including restaurants, cafés, and cloud kitchens, is expected to continue expanding strongly in the coming years as urban consumption patterns evolve and digital adoption deepens.
India’s food delivery platform sector has moved well beyond its roots as a convenience service to become an important contributor to economic output and job creation. As the market continues to mature and platforms diversify into related services, how effectively companies balance growth with sustainable unit economics, particularly amid intense competition and cost pressures, will shape the next phase of this sector’s evolution.
