India, Sept. 19 -- In his Independence Day address, Prime Minister Narendra Modi committed to next-generation Goods and Services Tax (GST) reforms by Diwalis. From September 22, that promise will show up in grocery bills nationwide. This is the essence of these changes: It's a relief you can taste. The reforms build on continuity. GST created a single national market and revenue stability. With that foundation in place, the simplified rate structure centres on two slabs - the 5% and 18% ones. Ultra-pasteurised milk, packaged paneer and all common Indian breads are at 0% GST. Most processed foods, including biscuits, namkeens, breakfast cereals, and coffee, are at 5%. Key packaging, such as cartons and moulded paper trays, is also at 5%. The intent is to keep food affordable, provide clearer classification and rate certainty, and allow industries to focus on scale and quality. Crucially, these changes arrive as India's food sector enters a historic expansion, driven by rising incomes, urbanisation and a young, health- and convenience-seeking population. For households, the payoff is immediate. A wide basket at 0% or 5% lowers monthly spend without asking families to compromise on hygiene or nutrition. Lower indirect tax on everyday foods leaves more disposable income each month where it matters most - the recurring grocery basket. As competition adjusts prices, consumers can expect more choice in fortified, ready-to-cook and ready-to-eat options that fit modern routines. For MSMEs, a cleaner rate structure shrinks the arbitrage between informal and formal operations. Formalisation becomes a business decision rather than a leap of faith. A predictable 5% output tax, along with input tax credits, improves margins and cash cycles. The result is better bankability, cleaner contracts with organised retail and the confidence to serve larger geographies. This simplification also standardises contracts and pricing and speeds credit cycles, which helps MSMEs build inventory for peak demand and reduce stock-outs. Food processing ties incomes of farmers to the nation's nutrition. Affordable processed foods lift year-round offtake of milk, grains, fruits and spices, reducing wastage and supporting better price realisation. When processing across categories finds growth viable at the revised rates, primary producers benefit through predictable procurement, faster payments and more contracts with farmer producer organisations and cooperatives. This creates a dependable flow from procurement to retail, making farm-to-factory-to-fork a reality. Predictability attracts capital. Two slabs and a simplified GST schedule reduce planning risk for domestic and global firms. A stable 5% on most processed foods improves India's cost position for co-manufacturing, private-label production and export-oriented lines. Lower tax on standard packaging trims unit costs and simplifies pricing decisions. This positions industry for capacity expansions, brownfield upgrades and new plants in districts that were not previously on investor shortlists. For exports and Brand India, lower costs translate into sharper prices. The lower, simplified rates on most processed foods and packaging improve price points and simplify paperwork - making snacks, condiments, ready-to-cook items and dairy derivatives more competitive abroad. Some may note revenue foregone in the short term. However, it is better viewed as a strategic investment in growth. It is an investment in India's households, whose increased purchasing power will drive demand; in our industries, which will reinvest savings in capacity, innovation and jobs; and in our nation's future, where the long-term dividends of growth, jobs and exports outweigh initial fiscal costs. When MSMEs formalise, more transactions move into the GST net, widening the tax base and boosting collections. The GST reforms will drive four major transformations in the food processing sector. First, they will democratise demand by making processed food affordable for a larger section of society. Second, they will help MSMEs formalise, finance and expand. Third, they will drive innovation, encouraging companies to launch healthier, tastier and more convenient products. Fourth, they will strengthen India's edge in global markets, enabling food exports to grow and Indian brands to become household names worldwide. This is why the current GST changes must be seen not as a technical adjustment but as a bold reform that embodies the government's commitment to ease of living, ease of doing business and ease of investing. They reflect our belief that when we simplify systems, empower industries and put people first, India does not just grow, it transforms....