India's processed food industry is celebrating the recent GST 2.0 reforms, which have seen tax rates reduced on nearly 300 items. Manufacturers like Mother Dairy, Allana Group, and Mr Makhana have pledged to pass these savings onto consumers through either direct price reductions or by increasing product sizes. These changes are expected to boost consumption and support the FMCG sector, with businesses also anticipating growth in export markets.
India's processed food industry has welcomed the recent GST 2.0 reforms, saying that the tax cuts will directly benefit consumers and drive higher consumption in the coming months. Speaking on the sidelines of the World Food India 2025 programme in New Delhi, leading companies including Mother Dairy, Allana Group, Mr Makhana, Marico and NAFED confirmed that they will pass on the benefits of reduced GST rates.
Passing on GST Benefits to Consumers
A senior executive from Mother Dairy said that t
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FAQ :
Effective September 22, 2025, approximately 300 processed food items have been moved from the 12% and 18% GST slabs to 0% and 5%.
Consumers will benefit either through direct price reductions on processed food items or by receiving larger product pack sizes for the same price.
Leading companies including Mother Dairy, Allana Group, Mr Makhana, Marico, and NAFED have confirmed they will pass on the benefits of reduced GST rates to consumers.
Yes, companies like Allana Group and Mother Dairy are planning to expand their export markets for various processed food and dairy products.
The reforms are expected to ease consumer expenses, stimulate economic momentum, boost sentiment during the festive season, and support long-term growth in the FMCG sector.