Question

Read the following passage and answer the questions given below:

The Indian ice cream industry is one of the fastest-growing segments of the dairy and food processing sector. India has a low per capita consumption of ice cream of 400 ml whereas in the USA it is 22,000 ml and in China, it is 3000 ml.     The per capita consumption of ice cream is low in India because it is a country filled with traditional sweets of more than 100 varieties. In developed countries, people have either pastries or ice-creams for dessert. In the era of Globalisation, the mindset of the people is fast changing. This is because multi-national companies have set up a number of ice-cream parlours, with a lot more varieties and flavours that attract the younger lot. Besides this, there are better delivery systems.      The ice cream sector has great potential for growth in the country due to improvements in the cold chain infrastructure, increasing disposable income, and changing the lifestyle of the people. However, it is taxed higher with 18 percent GST while other dairy products in the same basket such as butter and cheese are taxed at 12 per cent.      The ice cream industry has generated revenue of more than $1.5 billion in 2016-17. With the employment of 15 lakh people directly or indirectly, it is also considered one of the largest employers of the dairy and food processing industry.

1. Identify the reason for the low per capita consumption of ice cream in India.
2. Explain the impact of Globalisation on the Indian ice cream industry.
3. Find out the factors that could lead to the growth of the ice cream industry in India.
4. Express your views about the implications of higher GST on the ice cream industry in India.

Answer 1

1. The reason for the low per capital consumption of ice cream in India is the availability of traditional sweets of more than 100 varieties.
2. People's attitudes have shifted as a result of globalisation. As a result of globalisation, multinational corporations have established a number of ice cream parlours throughout the country. More variety and quantity of ice cream parlours in the country. More varieties and flavours of these MNCs are appealing to India's young population. These elements have helped the Indian ice cream industry.
3. The ice cream industry in India is expanding due to improvements in cold chain infrastructure, an increase in disposable income, and a shift in people's lifestyles.
4. 18 per cent GST on ice cream discourages entrepreneurs from investing in the ice cream industry. To boost the ice-cream industry, like other dairy products viz. butter, cheese, etc. ice cream too Should be taxed at 12 percent GST.