Chirag Paswan, Industry Leaders Hail GST Reforms at Food Processing Roundtable

The Ministry of Food Processing Industries (MoFPI), in partnership with the Confederation of Indian Industry (CII), convened an exclusive CEO roundtable today with leading food industry giants to deliberate on the impact of Next-Generation GST reforms. The high-level dialogue, chaired by Shri Chirag Paswan, Minister of Food Processing Industries, provided an open forum for industry and government to collaborate on strategies to strengthen the food processing ecosystem.

CEOs Commit to Passing Benefits to Consumers

Top executives from Amul, Britannia, Coca-Cola, Dabur, DS Group, ITC, PepsiCo, Rasna, Mars, Orkla Foods, Mondelez, Bisleri, Cremica Foods, Mrs. Bector, Srinivasa Farms, Hyfun Foods, and other companies pledged to pass on the benefits of GST rate reductions directly to consumers.

Industry leaders also promised to:

• Support MSMEs and smaller enterprises through awareness and compliance support.

• Ensure farmers get better value for their produce.

• Promote import substitution by strengthening domestic capacity.

• Advance the goals of Make in India by boosting value addition and competitiveness.

Executives expressed optimism that lower consumer prices would stimulate demand, leading to higher growth across the food processing chain.

Next-Generation GST Reforms: A Game Changer

The government’s GST rationalisation has streamlined the system into two simplified slabs of 5% and 18%, replacing the complex multi-slab structure. For the food sector, the reforms are particularly significant:

• Key staples, dairy, bakery, and packaged foods have been placed under the 5% or nil bracket, improving affordability.

• Correction of inverted duty structures removes long-standing inefficiencies.

• Enterprises now benefit from greater liquidity and easier compliance, enhancing competitiveness in both domestic and export markets.

The reforms, industry leaders noted, represent a major boost for consumer welfare, farmers’ income security, and sectoral growth.

Minister’s Call for Collective Responsibility

In his keynote, Minister Chirag Paswan reaffirmed the government’s commitment to creating an enabling environment for investment, innovation, and inclusive growth in the food processing sector.

Quoting Prime Minister Narendra Modi’s vision of “Reform, Perform, and Transform,” Paswan said:

“GST reforms have rationalised the tax structure, corrected anomalies, and opened fresh opportunities for growth. Food processing is among the biggest beneficiaries—this is a transformative step that will enhance value addition and reduce dependence on imports.”

He urged CEOs to:

• Ensure benefits are equitably distributed across the value chain—from farmers to consumers.

• Enhance product quality and formalise unorganised segments of the sector.

• Embrace technology, innovation, and sustainability to achieve long-term competitiveness.

• Candidly share challenges with government for timely resolution.

“With honest intent and sincere commitment, let us perform with dedication and together realise the vision of Viksit Bharat,” Paswan concluded.

Government’s Reform Agenda and Industry Feedback

A.P. Das Joshi, Secretary of MoFPI, highlighted that GST reforms would substantially improve the ease of doing business while rationalising tax compliance. He stressed the importance of industry feedback to ensure smooth implementation and called for collaborative efforts to spread awareness across the food processing ecosystem.

He further encouraged companies to focus on innovation, exports, and value addition as future growth drivers.

Industry leaders responded by sharing perspectives on:

• Export opportunities for Indian processed foods.

• Product diversification to meet evolving consumer demand.

• Technology adoption for efficiency and global competitiveness.

They also flagged areas where additional facilitation may be required, particularly in supply chain infrastructure and regulatory simplification.

World Food India 2025 Announced

On the sidelines of the roundtable, the Ministry announced that the 4th edition of World Food India will be held from 25–28 September 2025 at Bharat Mandapam, New Delhi.

The event will feature:

• B2B and B2G meetings.

• Sectoral roundtables and exhibitions.

• Buyer-seller meets connecting domestic producers with international markets.

• Showcases of cutting-edge innovation, investment opportunities, and partnerships.

World Food India is positioned as the country’s premier global platform for the food processing industry, expected to attract top investors, entrepreneurs, and innovators from around the world.

A Sector at the Cusp of Transformation

The roundtable reaffirmed that the food processing industry, one of India’s largest job creators and a key driver of rural incomes, is set to emerge stronger under the simplified GST framework. With government support, industry commitment, and consumer benefits aligned, the sector is poised to play a central role in India’s growth journey and global competitiveness.