Industry Leaders Commit to Transmitting GST Benefits to Consumers
The Ministry of Food Processing Industries (MoFPI) held a significant roundtable discussion today with prominent CEOs from the food processing sector, facilitated by the Confederation of Indian Industry (CII). Chaired by Minister Shri Chirag Paswan, the event aimed to foster open dialogue between government officials and industry leaders. The discussions centered on the recent GST reforms, which are expected to enhance the sector’s growth by simplifying tax structures and improving affordability for consumers.
Industry Leaders Pledge to Pass on GST Benefits
During the roundtable, executives from major companies such as Amul, Coca-Cola, and ITC expressed their commitment to passing on the benefits of the newly implemented GST rate reductions to consumers. They also emphasized the importance of supporting smaller enterprises within the food processing ecosystem. The leaders acknowledged that these reforms would not only lower prices but also stimulate demand, ultimately driving growth across the sector. Their collective pledge aims to ensure that farmers receive better value for their products and that the goals of import substitution and the “Make in India” initiative are advanced.
Next-Generation GST Reforms Explained
The discussions highlighted the recently announced Next-Generation GST Reforms, which streamline the tax structure into a simplified two-slab system of 5% and 18%. These reforms are designed to reduce complexity, address inverted duty structures, and enhance the ease of doing business. With essential staples, dairy, bakery, and packaged food products now falling under the 5% or nil tax bracket, the food processing sector is expected to experience increased consumer affordability and improved liquidity for enterprises. This shift is anticipated to bolster competitiveness in both domestic and global markets.
Government’s Commitment to the Food Processing Sector
In his keynote address, Minister Chirag Paswan reiterated the government’s dedication to fostering an environment conducive to investment, innovation, and inclusive growth within the food processing sector. He urged industry leaders to ensure that the benefits of GST rationalization are equitably distributed throughout the value chain, from farmers and micro, small, and medium enterprises (MSMEs) to consumers. Quoting the Prime Minister’s vision of “Reform, Perform, and Transform,” Paswan emphasized that these reforms correct long-standing tax anomalies and create new growth opportunities for the sector.
Future Prospects and Upcoming Events
The session concluded with a commitment to strengthen the partnership between the government and industry to unlock the full potential of the food processing sector. Industry leaders shared insights on opportunities for exports, product diversification, and technology adoption, while also identifying areas needing further support. Additionally, the Ministry announced that the fourth edition of World Food India will take place from September 25 to 28, 2025, at Bharat Mandapam in New Delhi. This premier global platform for the food processing sector will feature various events, including B2B and B2G meetings, sectoral roundtables, and international exhibitions, providing significant opportunities for investment and collaboration.
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