Budget 2025 Expectations and Impact on India’s Growing QSR Industry

Rahul Sehgal, Business Head, Bird Foods

The Quick Service Restaurant (QSR) industry in India continues to grow at an unprecedented rate, driven by rapid urbanization, evolving consumer habits, and an increasing focus on convenience and affordability. As we look forward to the upcoming financial budget, key trends and expectations will directly impact the growth of the QSR sector and its symbiotic relationship with the FMCG industry.

The QSR industry anticipates several key outcomes from the upcoming budget, including revisions in GST rates to ease cost burdens, as the current structure (5% without Input Tax Credit or 18% with ITC) poses challenges. Streamlined tax policies could also benefit FMCG suppliers by enhancing procurement and supply chain efficiency. With the government’s focus on 'Make in India' and self-reliance, incentives for collaborating with MSMEs for ingredient procurement, packaging, and logistics could reduce raw material costs and boost production partnerships. Investments in urban infrastructure and smart city projects are expected to create high-traffic zones ideal for QSR expansion, while also increasing demand for FMCG products tailored to these businesses. Additionally, budget allocations promoting eco-friendly practices, such as tax benefits for sustainable packaging and energy-efficient equipment, would encourage QSR operators to adopt greener initiatives and cater to the growing preference for environmentally conscious products.