Read the following passage carefully and answer the questions.
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 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 improvement in the cold chain
infrastructure, increasing disposable income and changing
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 an employment of
15 lakh people directly or indirectly, it is also considered
one of the largest employers of the dairy and food
1) Identify the reason for low per capita consumption
of ice-cream in India.
2) Explain the impact of Globalisation on the Indian
3) Find out the factors that could lead to the growth of
ice-cream industry in India.
4) Express your views about the implications of
higher GST on ice-cream industry in India.
1. The reason for low per capital consumption of ice-cream in India is availability of traditional sweets of more than 100 varieties.
2. 18 per cent GST on ice-cream discourages entrepreneur to invest in ice-cream industry. To boost the ice-cream industry, like other diary products viz. butter, cheese, etc. ice-cream too Should be taxed at 12 per cent GST.