NewsStocksFood Delivery Sector Employment Grows at 12.3% CAGR, Outpaces National Average: NCAER StudyFood Delivery Sector Employment Grows at 12.3% CAGR, Outpaces National Average: NCAER Study
NCAER research shows India's food delivery sector employed 13.7 lakh people in FY24, growing at 12.3% CAGR versus 7.9% national average. The sector demonstrated strong employment multiplier effects, ranking second among service sectors, with each job creating 2.7 additional economy-wide positions by 2023-24. These findings emerge amid ongoing gig economy debates following recent worker strikes.
*this image is generated using AI for illustrative purposes only.
The food delivery platform sector has emerged as a significant driver of employment growth in India, outpacing national averages and generating substantial multiplier effects across the economy, according to a comprehensive study by the National Council of Applied Economic Research (NCAER). The research, titled 'Impact of Food Delivery Platform Sector on the Indian Economy,' analyzed various government and private sector data to assess the sector's economic contribution.
Employment Growth Outpaces National Average
The food delivery sector demonstrated remarkable employment expansion, growing from 10 lakh people in 2021-22 to 13.7 lakh people in financial year 2023-24. This growth trajectory significantly exceeded national employment trends across the same period.
| Employment Metric | Food Delivery Sector | National Average |
|---|---|---|
| CAGR (2021-22 to 2023-24) | 12.3% | 7.9% |
| Employment FY 2021-22 | 10.00 lakh | - |
| Employment FY 2023-24 | 13.70 lakh | - |
While the sector's proportion in the country's total workforce remains relatively small, its growth rate substantially outperformed the broader economy's employment generation.
Significant Multiplier Effects Drive Broader Economic Impact
The study revealed substantial employment multiplier effects, demonstrating how growth in the food delivery sector creates additional jobs throughout the economy. The employment multiplier decreased from 3.40 in 2021-22 to 3.00 in 2023-24, indicating that every ₹10 lakh increase in sector output generated 3.4 and 3 jobs respectively in the broader economy.
| Employment Multiplier Analysis | 2021-22 | 2023-24 |
|---|---|---|
| Employment Multiplier | 3.40 | 3.00 |
| Employment to Output Ratio | 1.70 | 1.10 |
| Additional Jobs per Direct Job | 1.90 | 2.70 |
The employment to output ratio showed interesting dynamics over the period. In 2021-22, the ratio stood at 1.70 jobs per ₹10 lakh of output, meaning each direct job in the food delivery sector created 1.90 additional jobs in the broader economy. By 2023-24, while the employment to output ratio decreased to 1.10, each direct job generated 2.70 additional jobs economy-wide, indicating improved efficiency in job creation linkages.
Strong Performance Among Service Sectors
The food delivery platform sector demonstrated competitive performance within the services economy. Among service sectors, it achieved seventh position in terms of output multiplier effects. More notably, the sector secured second place in employment multiplier rankings, surpassed only by the hotels and restaurants sector.
Research Emerges Amid Gig Economy Debate
These findings come during heightened discussions about working conditions in the gig economy. Food delivery workers employed by major platforms including Swiggy and Zomato recently conducted strikes demanding higher wages and improved working conditions. The research provides quantitative context to ongoing debates, with industry leaders emphasizing employment generation while acknowledging the need for continued improvements in worker contract policies and benefits.
The NCAER study offers data-driven insights into the food delivery sector's economic contribution, highlighting both its role as an employment generator and its broader economic linkages across India's service economy.
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