Top CEOs of large food businesses on Thursday voluntarily committed to transferring the gains of GST rate cuts to consumers.
The commitment was made at a meeting organized by the Ministry of Food Processing Industries, in association with the Confederation of Indian Industry (CII). The roundtable, hosted by Chirag Paswan, Food Processing Industries Minister, offered a valuable forum for free discussions among government and industry leaders.
The business leaders also pledged to sensitise smaller enterprises throughout the ecosystem, deliver greater value to farmers, and promote the objectives of import substitution as well as Make in India. Industry captains stated the reforms would not merely reduce prices but also generate demand, eventually triggering growth throughout the industry.
The forums were centered on the just-released Next-Generation GST Reforms, which simplify the tax structure into a easy two-slab arrangement of 5 per cent and 18 per cent.
The reforms, the goal of which is simplicity, elimination of inverted duty structures, and ease of doing business, are expected to have a big impact on the food processing ecosystem.
With major staples, dairy, bakery, and packaged food items now included in the 5 per cent or nil tax slab, the industry is likely to see increased consumer affordability, enhanced liquidity for business, and better competitiveness in domestic as well as international markets.
The minister reiterated the government's pledge to establishing an investment, innovation, and inclusive growth-conducive environment in the food processing industry in his keynote speech. He asked industry captains to ensure that the advantages of GST rationalisation are equitably transmitted throughout the value chain, from farmers and MSMEs to the consumers.
Citing the vision of "Reform, Perform, and Transform" given by the Prime Minister, the Minister highlighted how the reforms in GST have streamlined the tax regime, plugged long-standing distortions, and unlocked new opportunities for growth. He highlighted the fact that food processing is one of the largest gainers from the reforms, saying that it's a game-changer for an industry that has the potential not only to be a driver of value addition but also to make India less dependent on imports.
The Minister emphasized that today's meeting aimed at intensifying collective responsibility for the smooth roll-out of GST reforms. He urged industry to make a concerted effort to pass on benefits to customers, improve product quality, organize the unorganized sector, and provide greater income assurance to farmers.
Referring to India's international position as the world's largest producer of numerous farm products, the Minister described that low value addition continues to be a challenge. He urged industry to regard the reforms as a chance to invest in technology, diversify product mixes, and move into overseas markets.
Industry captains presented their views on exports opportunities, diversification of products, and technology upgradation, apart from highlighting areas that need further ease of doing business. The session ended on an assertion of government-industry collaboration to realise the full potential of the industry.
The Ministry also revealed that the 4th edition of World Food India would take place between 25th–28th September 2025 at Bharat Mandapam in Delhi.
Being India's most international platform for the food processing industry, the event will comprise B2B and B2G meetings, sectoral roundtables, and international exhibitions, buyer-seller meets and many more, providing unprecedented opportunities for investment, innovation, and partnership.
Read also| India-US Trade Talks Progressing; First Tranche Expected by November, Says Piyush Goyal
Read also| India’s Resilience Amid Global Trade Impact from Tariffs: Report
