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Read the following passage carefully and answer the questions: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 3000ml. 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 globalization, the mindset of the people is fast changing. This is because multi-national companies have set up a number of ice-cream parlors, 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 improvement 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 percent. 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. |
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Answer» 1. In India, traditional sweets are available, which are having more than 100 varieties. 2 .Due to globalisation, multinational companies have set up a number of ice-cream parlours with a lot of varieties and flavours. It helps to attract the younger generation of today. 3. In India Ice-cream industry has wider scope because there is an improvement in cold chain infrastructure, increase in disposable income, and changing lifestyle of the people. 4. The ice-cream sector is indirectly dependent on the primary sector. If the demand for ice cream increased then the income of cattle owners will grow. 18% GST on ice cream is high because ice cream is made from milk which is good for health as compared to tobacco, pan masala. Same GST (18%) is imposed on tobacco and pan masala but it is injurious to health and finally, the burden of GST will transfer to customers. |
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