India’s food processing sector has pledged to ensure that the benefits of the recent Goods and Services Tax (GST) rationalization directly reach consumers, while also strengthening support for farmers, MSMEs, and small enterprises.
At a high-level roundtable hosted by the Ministry of Food Processing Industries (MoFPI) in partnership with the Confederation of Indian Industry (CII) on September 11, top executives from Amul, Britannia, Coca-Cola, Dabur, ITC, PepsiCo, Mondelez, and Bisleri committed to passing on reduced tax burdens to the public. The meeting was chaired by Union Food Processing Industries Minister Chirag Paswan.
The new GST framework streamlines the tax regime into two slabs—5% and 18%—with staples, dairy, bakery, and packaged foods now falling under lower rates. The reform is expected to cut costs, correct inverted duty structures, and simplify compliance, thereby boosting ease of business.
Paswan said the reforms go beyond tax relief, describing them as “a transformative step to strengthen the entire food processing ecosystem in line with the Prime Minister’s vision of ‘Reform, Perform, and Transform’.” He urged industry leaders to ensure that benefits flow “across the value chain, from farmers and MSMEs to end consumers.”
A.P. Das Joshi, secretary of MoFPI, added that companies must prioritize innovation and value addition, noting that while India leads in agricultural production, value addition remains low.
Industry representatives also pledged to back smaller players, enhance farmer incomes, promote import substitution, and align with the Make in India initiative. They identified opportunities in technology adoption, product diversification, and exports but called for further government support in enabling growth.
As part of the government’s broader push to unlock sectoral potential, MoFPI announced that the fourth edition of World Food India will be held from September 25–28, 2025, at Bharat Mandapam, New Delhi.