NEW DELHI– Top executives from major food companies have pledged to ensure that consumers directly benefit from the government’s newly announced Goods and Services Tax (GST) rate reductions.
The commitment came during a roundtable organized by the Ministry of Food Processing Industries in partnership with the Confederation of Indian Industry (CII). The meeting, chaired by Food Processing Industries Minister Chirag Paswan, brought together government officials and industry leaders to discuss the implications of the reforms.
Executives agreed not only to pass on the savings from tax cuts but also to work with smaller enterprises, improve value for farmers, and support the broader goals of import substitution and the Make in India initiative. They emphasized that lowering prices would help stimulate demand, boosting growth across the food processing sector.
The discussions centered on the government’s Next-Generation GST Reforms, which simplify the tax system into two slabs — 5 percent and 18 percent. The changes are designed to reduce complexity, correct inverted duty structures, and improve ease of doing business.
With staples, dairy products, bakery goods, and many packaged foods now taxed at 5 percent or exempted entirely, the reforms are expected to make everyday products more affordable while improving liquidity for businesses and strengthening their competitiveness in both domestic and global markets.
In his keynote address, Paswan reaffirmed the government’s commitment to fostering investment, innovation, and inclusive growth. He urged companies to ensure the benefits of tax rationalization reach every level of the value chain, from farmers and small businesses to end consumers.
Citing Prime Minister Narendra Modi’s vision of “Reform, Perform, and Transform,” Paswan described the GST changes as a corrective step that eliminates long-standing inefficiencies and opens new opportunities for the food sector. He also encouraged businesses to invest in technology, expand product lines, and pursue global markets.
Industry leaders used the platform to highlight opportunities in exports, product diversification, and technology adoption, while also pointing out areas where further government support would be helpful.
The ministry closed the session with an announcement that the 4th edition of World Food India will take place September 25–28, 2025, at Bharat Mandapam in New Delhi. The event is expected to serve as a premier platform for investment and innovation, featuring B2B and B2G meetings, international exhibitions, and buyer-seller engagements. (Source: IANS)
