Question

Q5. Read the following passage and answer the questions given
below
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 processing industry.
1) Identify the reason for 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 ice-cream industry in
India.
4) Express your views about the implications of higher GST on ice-cream
industry in India​

Answer 1

Answer:

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