While Roots Café laid the foundation with fresh, mindful food, Anahata Café expands the vision beyond nourishment of the body to nourishment of the heart and energy. The name Anahata — derived from the Sanskrit term for the heart chakra — symbolizes love, compassion, balance, and emotional well-being. The transition represents both a brand evolution and a deeply personal journey — from building a café to building a space that holds presence and intention.

On the brand revamp, Meenakshi Kumarr, Chef & Founder of Anahata Cafe, said, “Roots Café was where we learned to nourish people. Anahata Café is where we learned to hold space for them. This transition is not just a rebrand; it is a reflection of inner growth, deeper intention, and our commitment to creating food and spaces that truly come from the heart. To every guest who has supported Roots, this journey exists because of your love and trust. Anahata is not a goodbye to Roots; it is Roots growing deeper and blooming wider. The warmth, honesty, and care you experienced with us will only become stronger.”

What’s New at Anahata Café

• A more wellness-forward, sattvic-leaning menu
• Seasonal, farm-linked specials and chakra-inspired offerings
• Cleaner ingredients and mindful cooking techniques
• Expanded range of functional beverages, fresh juices, and herbal infusions
• Elevated presentation and storytelling around dishes
• A calmer, sensory-driven dining environment

Location:- E 140, ground floor, block E, Amar Colony, opposite Tagore International School, Lajpat Nagar IV, New Delhi, 110024

The new location has been intentionally designed to support this evolved vision. Featuring biophilic elements, mindful seating layouts, and natural materials, the space encourages guests to slow down and reconnect.

With its new name, new home, and renewed purpose, Anahata Café invites guests to step into a dining experience that feeds both appetite and awareness.

The post Roots Café rebrands as Anahata Café, embraces conscious dining vision appeared first on Business of Food.

The sharper shift came through GST realignment. Zero-rating daily staples such as chapatis, rotis, paneer, and UHT milk, alongside a consolidated 5 percent slab for dairy, processed foods, snacks, personal care, and baby products, altered cost structures across FMCG and food service. With consumer inflation projected to ease by up to 1.1 percentage points, the budget created consumption headroom at a time when MSME financing, women-led entrepreneurship, and green infrastructure were being actively encouraged—particularly across Tier II and Tier III markets.

What FMCG Leaders Are Really Asking from Budget 2026

As Union Budget 2026 approaches, the FMCG leaders’ expectations are narrowing to a few decisive asks: fix GST inefficiencies, revive consumption, and enable manufacturing at scale. The intent is acknowledged, but delivery will be the real test.

GST remains the most immediate friction point. Ramesh Bafna, Chief Financial Officer, Zepto, calls unutilised input tax credit “taxes already paid by businesses,” arguing that allowing these credits to be used against reverse charge liabilities and TCS would “meaningfully improve ease of doing business” while reducing cash outflows and unlocking working capital “without revenue loss to the government.” Nikhil Doda, Co-Founder and Chief Operating Officer, Lahori Zeera, flags the same issue from the factory floor. With most FMCG products now taxed at 5 percent, he notes that higher GST on services, advertising, and machinery leads to continuous accumulation of credits, adding to “the overall cost of manufacturing and selling” and dampening appetite for fresh investment in plant and equipment.

On the demand side, industry leaders are looking to Budget 2026 to reignite consumption momentum. Ishita Malpani, Managing Director, Amruta Tea, says targeted fiscal support that boosts disposable incomes and brings clarity to GST implementation will be “crucial for stimulating consumer spending and improving affordability.” Continued investment in rural infrastructure and logistics, she adds, will strengthen the backbone of India’s consumption story while helping homegrown brands scale. A spokesperson for DS Group echoes this, urging a “consumption-driven framework” backed by higher capital expenditure, corporate tax rationalisation, and targeted manufacturing support to strengthen both household spending power and the ‘Make in India’ mission.

Food processing and frozen foods, which gained policy visibility in Budget 2025, are now seeking sharper execution. Haresh Karamchandani, Managing Director and Group CEO, HyFun Foods, believes Budget 2026 can “accelerate India’s food processing ecosystem” through PLI schemes, export-oriented incentives, cold-chain investments, and support for backward integration, helping India emerge as a dependable global supplier of value-added foods. From a startup lens, Ekansh Garg, Co-Founder and CEO, Cravicious Foods, points to gaps between policy and reality. The current Rs 1 crore subsidy cap for expansions, he says, is inadequate for capital-intensive frozen food projects, and a single-window clearance system is essential to cut through multi-departmental approvals. Easier, collateral-free access to credit would further enable companies to invest in technology and meet rising demand.

Collectively, these views underline a clear industry message: Budget 2026 must move beyond broad assurances to targeted fixes: resolving GST distortions, unlocking working capital, strengthening consumption, and backing manufacturing with policies aligned to on-ground realities.

Food Service Sets Its Budget Agenda

As Budget 2026 comes into view, food service and hospitality leaders are sharpening their demands around three themes: tax clarity, formalisation, and the removal of structural bottlenecks that slow expansion despite clear consumer demand.

For food-tech and processed traditional foods, GST remains the first hurdle. Sanket S, Founder, Scandalous Foods, says the sector is looking for “GST simplification and more balanced tax rates on processed traditional foods” to ease pressure on MSMEs and bring unorganised players into the formal economy. He links tax reform directly to growth levers such as cold-chain infrastructure and household purchasing power, arguing that targeted support for automation and easier access to credit—aligned with Atmanirbhar Bharat—can help India emerge as “a global centre for preserved traditional foods.”

Women entrepreneurship is another area where industry voices want Budget 2026 to move from rhetoric to decisive support. Meenakshi Kumarr, Chef and Founder, Anahata Cafe, calls the Budget a potential “turning point” for women-led enterprises, particularly in food and hospitality. Despite rising participation, she notes that women founders continue to face barriers in finance, mentorship, and compliance. “Many women-led ventures are operating at the grassroots level and require flexible funding models that recognise their realities rather than traditional balance sheets,” she says, advocating collateral-free credit, interest subvention, and simpler formalisation. Investment in skills, digital enablement, food safety, and sustainability training, she adds, is essential to help women entrepreneurs in Tier II and III cities scale responsibly.

From an operator’s lens, the focus is squarely on structural alignment. Pulkit Arora, Director, CYK Hospitalities, says the industry is hopeful that Budget 2026 will finally address long-pending issues such as restoration of input tax credit, recognition of hospitality as an industry, and simpler licensing. These changes, he argues, would allow businesses to focus on “quality, innovation, and consistency rather than dealing with inefficiencies.” His colleague, Simran Jeet Singh, Director, CYK Hospitalities, links policy clarity directly to expansion, noting that brands are ready to grow and markets are ready to consume. What’s missing, he says, are “clearer leasing frameworks, single-window approvals, and uniform commercial policies” that make expansion predictable rather than fragmented.

At an industry level, the National Restaurant Association of India has flagged rising cost pressures. NRAI President Sagar Daryani points to Notification No. 09/2024 on reverse charge mechanism for commercial leases, stating that it has increased costs for smaller restaurants and MSMEs. The association is calling for its review, along with reinstatement of the SEIS scheme, targeted subsidies on essential inputs, better access to debt financing, and industry status for food services. Daryani also reiterates the long-standing demand for a dedicated food services ministry to support growth, sustainability, and employment across the sector.

Together, these perspectives reinforce a consistent message to policymakers: food service and hospitality do not need incremental tweaks in Budget 2026. They need clarity, correction, and commitment to convert demand momentum into durable, nationwide growth.

What the Food Ecosystem’s Enablers Expect from Budget 2026

Beyond the food and beverage industry, the ecosystem that enables it—from protein innovation and logistics to energy infrastructure—is also lining up clear asks from Union Budget 2026. These solution providers argue that India’s next phase of food-sector growth will hinge on integrated policy support for technology, sustainability, and large-scale infrastructure.

At the intersection of food, science, and sustainability, Sneha Singh, Managing Director at GFI India, positions smart proteins as a strategic priority. With demand rising for affordable, high-quality nutrition, she says the budget must reduce capital risk through public–private partnerships and institutional procurement pilots to help alternative proteins reach price parity and scale. Singh also calls for deeper investment in agricultural R&D for underutilised pulses and indigenous crops, alongside dedicated processing infrastructure for plant-based value chains to lift farmer incomes. Linking food innovation to India’s broader bioeconomy ambitions, she notes that sustained funding under the BioE3 policy and RDI Fund—especially for shared biomanufacturing infrastructure, Bio-AI, and workforce skilling—could accelerate India’s path to a $300 billion bioeconomy and position it as a global hub for next-generation proteins.

Logistics players, meanwhile, are focused on execution and efficiency. Dipanjan Banerjee, Chief Commercial Officer at Blue Dart, says Budget 2026 must build on PM Gati Shakti by prioritising seamless physical and digital integration across air, road, rail, and multimodal corridors. Reducing dwell times, simplifying customs, and enabling smoother intermodal transfers, he argues, are critical to lowering logistics costs to global benchmarks—especially as India scales exports and e-commerce simultaneously. Banerjee also flags cross-border e-commerce reforms for MSMEs, cleaner mobility incentives, and faster adoption of EVs and Sustainable Aviation Fuel as essential to future-proof logistics while meeting climate goals.

A similar technology-first view comes from Dhruv Taneja, Founder and Global CEO of MatchLog, who stresses the need for digital innovation in inland container logistics. He points out that incentives for AI-driven freight platforms, EV trucking corridors, and multimodal hubs under Gati Shakti can cut empty miles by up to 15 percent, reduce emissions, and improve asset productivity. To scale such efficiencies nationally, Taneja calls for budgetary support for technology-led freight networks, shared inland infrastructure near industrial clusters, and end-to-end digital documentation to ease port congestion and accelerate turnaround times.

Energy infrastructure, a critical but often invisible enabler, also features prominently. Satyen Mamtora, CEO and Managing Director at Transformers and Rectifiers (India) Ltd., says India’s energy transition will require a stronger, more resilient grid. Ahead of Budget 2026, he is looking for faster approvals, a single-window mechanism to address right-of-way delays, and increased support for energy storage to enable large-scale renewable integration. A consistent policy push on grid modernisation and indigenous manufacturing of transformers and storage systems, he adds, will be key to energy security, competitiveness, and clean energy goals.

Taken together, solution providers are delivering a unified message: Budget 2026 must move beyond sector-specific incentives and invest in the connective tissue of the economy. Technology, logistics, energy, and sustainable innovation are no longer support functions—they are central to how India’s food, manufacturing, and export ambitions will be realised.

Conclusion

As Budget 2026 approaches, the conversation has moved decisively forward. The issue is no longer sector recognition, but policy depth and execution: further GST rationalisation, clarity on input tax credit, faster single-window clearances, and sharper incentives that translate intent into scale. Budget 2025 laid the foundation. Budget 2026 will determine whether India’s food and hospitality sectors merely consolidate or decisively accelerate.

The post The Food Economy Lens for Budget 2026 appeared first on Business of Food.

At the consumer level, the reforms are unambiguous: eating, cooking and grooming just got cheaper. From parathas to shampoo, from butter to biscuits, households will feel immediate relief in their monthly baskets. Analysts expect that if brands pass on the full benefits, discretionary demand could surge in the run-up to Navratri and Diwali, creating one of the strongest quarters for FMCG in recent years.

Key GST Reforms for FMCG & F&B

• Staples now tax-free (0%): chapatis, rotis, parathas, packaged paneer, UHT milk, khakhra, pizza bread.
• Personal care at 5% GST: hair oil, shampoo, toothpaste, shaving creams, toiletries.
• Dairy at 5% GST: butter, ghee, cheese, spreads.
• Processed foods & snacks at 5% GST: namkeens, biscuits, sugar confectionery, jam, fruit jellies, tender coconut water, beverages containing milk, ice-cream.
• Baby and household products at 5% GST: diapers, napkins, feeding bottles, utensils.
• Inflation impact: consumer inflation may soften by up to 1.1 percentage points, creating headroom for stronger consumption.

With the recent GST overhaul setting the tone for tax reforms, it’s a pivotal moment to assess its implications for the FMCG and F&B sector. Below are insights and perspectives from industry experts, highlighting their views on how the revised rates will influence consumption patterns, pricing strategies, and overall market sentiment. From expectations of stronger rural demand to sharper competitive play among large and emerging brands, these outlooks capture the sector’s anticipation of how the policy rollout will translate into on-ground impact.

Bhuvaneswari Nara, Vice Chairperson & Managing Director, Heritage Foods

“The GST recalibration for India’s dairy industry is very welcome and timely. Moving everyday staples like paneer to the 0% slab, and ghee, butter, and cheese from 12% to 5%, will have a broad impact, as these categories touch nearly 100% of Indian households.

Not only do these essentials lighten the monthly grocery bill, but the reforms also help high-quality, branded products compete effectively with unorganized and unregulated producers. This shift strengthens formal supply chains, builds consumer trust, and supports more nutritious diets. Dairy products such as paneer, butter, and ghee are staples in every Indian kitchen, yet rising prices have forced many families to switch to cheaper substitutes that lack similar nutritional value.

In light of this, we at Heritage Foods are happy to announce that we shall be passing on the full benefits of these reforms to our consumers, helping boost the festive mood in our markets. We are also working with our partners and distributors to manage the transition smoothly and will be looking to ramp up capacity to capture the expected market expansion. We are also working closely with our distributors and retail partners to manage the transition smoothly and effectively.”

Paresh Parekh, Partner & National Leader for Tax – Consumer Products and Retail Sector, EY India

“GST reforms and rate rationalisation for consumer and retail sector, including everyday household daily items, FMCG goods,  electronics etc. is an extremely needed, welcome, timely, and bold move from Government.
 
The tax cuts are expected to directly lower consumer prices, offering significant relief to households, especially in rural and semi-urban areas where FMCG spending is sensitive.   For smaller product packs, companies may offer more quantity instead of reduced prices, passing value to consumers in a different form. The reform is widely expected to revive consumption demand, especially during the festive season, as daily-use goods become more affordable. Businesses estimate observable impact across domestic and rural markets, unlocking growth in packaged food, personal care, and staples.
 
Additionally, administrative measures such as faster three-day GST registrations for non-risky businesses and a 7-day refund window for export-oriented sectors — including textiles — are expected to significantly ease compliance and cash flow issues.
 
Faster refund processing, especially for exporters, will alleviate liquidity constraints common in the textile supply chain, helping in smoother operations and timely production. Garments and footwear priced up to Rs. 2,500 have been moved to the 5% slab, down from previous 12% or 28% rates—an immediate boost to affordability. While budget items enjoy relief, the decision to impose 18% GST on garments above Rs. 2,500 has drawn some concern. Industry players argue this could hurt middle-class consumers and handcrafted apparel segments like wedding attire and winter wear, potentially undermining the gains from simplification.

FMCG Distributors will have to evaluate potential supply-chain disruptions and may expect the government to issue clear guidelines on pricing and input tax credit (ITC) during the transition. Without structured guidance, benefits may not uniformly reach retailers or consumers, and outdated stock at previous tax rates may complicate compliance and margin flows.
 
The next steps for businesses is to quickly analyse,  where and on which products precisely rate reduction/revision has happened, and whether and where they are sitting with huge ITC (input credits) on capital goods, etc.
 
Also, businesses should analyse where possibly “Incentives clawback” may reduce where there is a rate reduction and incentives are linked to GST rates.”

Jitin Makkar, Senior Vice President & Group Head, Corporate Sector Ratings, ICRA Limited

“The GST rate cut on key FMCG categories is expected to stimulate consumption, at a time when demand impulses, particularly in urban markets, have lost sheen. Lower shelf prices on everyday essentials such as packaged foods, personal care items, and household products will likely drive volume growth and improve consumer sentiment. For companies, this could translate into higher throughput and better inventory turnover, especially ahead of the festive season. If demand accelerates, it will also benefit allied sectors such as packaging, distribution, and retail networks. While companies will need to manage competitive pricing and margin dynamics, the real benefit lies in expanding market penetration and accelerating demand recovery.”

Retailers Association of India (RAI)

Positive Developments 

RAI appreciates the removal of the inverted duty structure across the textile value chain, which brings much-needed clarity, balance, and predictability to the industry. 

Key Concerns Raised by RAI 

Despite the positive changes, RAI has highlighted some concerns regarding specific  categories and structural issues: 

Structural Flaws in Price-Based GST Slabs 

RAI strongly recommends moving to a flat GST rate across product categories rather  than relying on price-based thresholds, which: 

• Create distortions and promote grey market activity 

• Lead to misreporting and compliance challenges 

• Harm organised retail, especially for mid- and premium-priced products

• Discourage domestic manufacturing, undermining Make in India 

• Create artificial barriers that force consumers to downgrade instead of expanding natural demand.

Harsh Vardhan Gupta, Co-Founder & CEO – India, MatchLog Solutions

“The GST relief on freight and carriage services is a decisive boost for the logistics sector. Bringing down the tax rates will ease operating costs for transporters, exporters, and fleet operators, making cargo movement more efficient across the country. It also creates the right environment for faster adoption of digital and technology-led models that can optimize turnaround times and reduce inefficiencies in the supply chain. At MatchLog, we believe this move will act as a strong catalyst in scaling smarter, greener, and more sustainable logistics solutions, aligning well with India’s broader push towards supply chain modernization and decarbonization.”

Deepak Jolly, Chairperson, The Indian Food & Beverage Association (IFBA)

“This move is set to be a great boom for the food sector, driving growth, affordability, and innovation. It will also create new opportunities for startups, simplifying compliance and giving young F&B entrepreneurs the confidence to scale their ideas. At the same time, this reform will benefit the wider food industry as well as healthcare, by making nutritious, safe, and convenient products more affordable and accessible to millions of Indian families.”

IFBA and its team have been working on the barriers of growth for the food industry and have represented the case for food product categories on the strength of ‘Research Based’ narratives to assert with several stakeholders across the country who were a part of either “The GST Fitment Committee” or ‘The GST Council’ for GST Rationalisation for the F&B industry. Building on insights from IFBA’s February 2024 Landscape Study of the Breakfast Cereals Sector, which underscored affordability and accessibility challenges, the Association sees this move as a direct response to long-standing calls for lower taxes on cereals, supporting wider access, formalisation, and responsible growth of India’s packaged foods ecosystem.”

Simranjeet Singh, Director, CYK Hospitalities

“The GST rationalisation represents an uplifting change for any startup or emerging brand in the F&B industry, as it promises an easier working life. Up until now, the multiplicity of tax slabs has posed serious troubles for the young entrepreneurs to construct a transparent price structure, to remain in compliance, and to contend with such buying customers who are cost-conscious. Two slabs with 5% for essentials and 18% for anything else enhance the clarity of choice when operating a new venture and deciding on product mix and expansion strategy. Greater transparency reduces compliance costs and gives confidence to investors in scalable F&B models. The product on a lower slab is beneficial for startups, as cheaper products create demand for QSR concepts, cloud kitchens, and packaged foods, whereas premium concepts purchase on the higher slab. Thus, by way of creativity, the reform empowers the ecosystem through ingenuity, credibility, and promising avenues of growth for entrenched players as well as burgeoning entrepreneurs.”

Abhay Parnerkar, CEO, Godrej Foods Ltd.

“The decision to reduce GST on products like frozen foods, meats, and to exempt Indian breads altogether, is a progressive move that strengthens both consumer confidence and industry momentum. Lower taxation will translate into greater affordability, increased consumption, and broader opportunities for the food sector to expand reach and invest in new product development. Importantly, these measures will also reinforce value creation across the farm-to-fork ecosystem by boosting farmer incomes, improving processing efficiency, and widening retail access. Together, they highlight the government’s commitment to building a resilient and future-ready food economy for India.”

Vikram Marwaha, Joint Managing Director, DRRK Foods

“The recent reduction in GST on essentials such as soaps, oils for hair etc (from 12-18% to 5%) is a welcome relief for households that are able to afford some daily items and as this measure promotes savings particularly in the rural and semi-urban areas. With the festive season just around, this action could trigger consumer sentiment moving more readily to an uptick in FMCG demand.

At DRRK Foods, we see this as an opportunity to have essentials, including basmati rice, more in the hands of consumers, while being committed to quality and trust in the organised retail. Our best estimate is that consumers can expect an effective price decline for these essential goods of circa 7-13% which is considerable in terms of household savings.”

Dushyant Singh, Founder, Coffee Sutra

“As someone closely involved in India’s coffee journey, I thank our Finance Minister, Nirmala Sitharaman, and view GST 2.0 as a real turning point for our industry. Bringing GST on coffee and food bills down to 5% is not just a fiscal reform but also a structural boost that addresses some of the biggest hurdles specialty roasters and cafés like Coffee Sutra face. Coffee, which once began as a lifestyle product, has steadily transformed into a household essential. From morning brews at home to café culture across cities, the love for coffee has grown tremendously. By reducing the GST, more people will now have the opportunity to explore and enjoy better quality coffee at a fairer price. Today’s customer is informed, aware, and values what goes into their cup. With this tax reform, introducing them to freshly roasted, farm-sourced, and well-crafted coffee becomes even easier. It empowers both consumers and businesses, as consumers get value, and coffee brands gain the chance to reach a wider audience. GST 2.0 is a welcome step that combines affordability, accessibility, and growth, providing the momentum India’s coffee industry needs right now.”

Meenakshi Kumarr, Founder, Roots Café by Rural Mitra

“The two-slab shift through the new GST reform of 5% and 18% seems like a positive step towards simplicity as well as transparency. As someone working in the food, café, and hospitality space, I see this reform as a welcome step towards simplification and transparency. It will reduce confusion for both businesses and consumers, especially small entrepreneurs like us who often struggle with compliance and price balancing. This consistency will assist small business owners in creating menus, determining reasonable meal costs, along with increasing focus on providing consumers with an improved experience.

However, the government must keep in mind regarding the small business owners to ensure that the essential categories, especially those that are centered on sustainable and farm-to-table initiatives, are not severely impacted.

This strategy will ensure that the new changes foster innovation in addition to enhancing operations, promoting ethical sourcing, and assisting business owners who are working to significantly transform India’s food and hospitality sector.”

Ajaypal Rathore, Chief Finance Officer, Burger Singh

“The revision in GST rates is a welcome step for India Inc. This move is expected to boost demand, help curb inflation, reduce the tax burden across the supply chain, and should significantly lower disputes related to applicable tax rates. At this stage, limited information is available in the public domain, so it would be premature to quantify the financial impact of the GST rate revisions on businesses. However, it is widely expected that products in the Food and Beverages category will become more affordable and accessible.”

Vikrant Batra, Co-Founder, Café Delhi Heights

“As a committed member of the restaurant industry and founder of a homegrown brand, I sincerely appreciate the recent GST reforms introduced by the Government of India. These measures are undoubtedly a step in the right direction and reflect the government’s intent to ease financial pressure on households. They promote affordability and are aligned with broader public interest.

However, from the perspective of the restaurant sector, the reforms offer only limited relief. While we welcome the rationalization of rates, the absence of provisions around Input Tax Credit continues to be a missed opportunity. For restaurants, especially in the standalone and mid tier space, the denial of ITC impacts margins and restricts the ability to reinvest in operations, innovation, and growth.

That said, we remain encouraged by the government’s ongoing engagement with the industry. We hope that future reforms will take into consideration the specific needs of the F&B sector and create a more enabling ecosystem for sustainable development.”

Deepak Sahni, Serial Entrepreneur & Investor, Founder, Healthians

“This GST overhaul is not only about slashing taxes but is also about shifting the game. The exemption on health insurance and reduced GST on fitness services signal a much-needed shift from reactive care to preventive health, something India has long needed. What stands out is the balance: while families get relief on critical healthcare and nutrition, harmful products remain untouched. This not only reduces the financial strain on households but also nudges the country toward healthier living. It opens up a stronger ecosystem where affordability, innovation, and accessibility can grow hand in hand. When prevention becomes affordable, we’re helping families steer clear of illness, not just react to it.”

Mandeep Singh, Managing Director, Arabian Delites

“The recent GST reforms on restaurant billing and essential ingredients are a welcome and progressive step for the food and beverage industry. By simplifying taxation and easing the cost burden on raw materials such as grains, oils, and fresh produce, the reforms give F&B players like us the flexibility to manage expenses more efficiently and plan better for the long term. Reduced input costs directly translate into greater freedom for businesses to source fresher, higher-quality ingredients, while keeping menus fairly priced and diverse. This balance allows us to serve customers better without compromising on taste, nutrition, or authenticity that Arabian Delites is known for.

Equally important is the move toward a more transparent billing system. When diners clearly see the value of what they are paying for, it fosters stronger trust and confidence between industry players and consumers. The clarity in pricing not only benefits customers but also strengthens the credibility of businesses operating in an increasingly competitive market.

Overall, these reforms set the stage for a healthier ecosystem where both restaurants and diners benefit. Businesses can focus on innovation, quality, and service, while customers enjoy authentic, high-quality dining experiences at fair prices. It is a step that supports growth, sustainability, and accessibility across the industry.”

Anant Goel, Founder & CEO, Handpickd

“We warmly welcome the government’s decision, which will significantly enhance consumer affordability and benefit our entire ecosystem. While fresh produce rightfully remains at nil GST, the rate cuts on dairy and processed foods are a monumental win for the entire value chain. This not only makes wholesome products more affordable for families but also directly boosts the income of farmer producer organizations. For Handpickd, this is a catalyst to strengthen our mission: connecting our customers to the best of what our farmers produce with unparalleled transparency and value.” 

Aayush Madhusudan Agrawal, Founder & Director, Lenexis Foodworks

“The GST reforms mark a landmark shift for the food services sector. With restaurant meals now taxed at a flat 5%, dining out becomes more accessible for consumers at a time when festive demand is set to rise. The rationalisation of rates across core inputs like food ingredients, packaging, and equipment will ease operating costs and improve business confidence. For Lenexis FoodWorks, these changes provide a strong platform to deliver greater value to our customers and scale more ambitiously in the months ahead.”

Chef Harsh, Founder, Boom Burger

“The new GST reforms are somewhat of a hit or miss move for F&B brands like ours. By cutting down to just two main tax slabs, 5% and 18%, the government has simplified compliance and lowered costs across the supply chain. While we, the producer, fall into the 5% category, online delivery platforms have to adhere to the 18% slab.

At Boomburger, many of our everyday essentials now fall under the 5% bracket, which directly reduces input costs. That means we can channel savings into better quality ingredients, innovation, and keeping our pricing attractive for customers.

However, online platforms like Zomato and Swiggy have to charge 18% GST so that essentially offsets our potential gains. While our burgers may become cheaper to produce, higher platform fees will definitely deter customers from ordering in, given how price sensitive the Indian market is. It’s a balance we’ll have to navigate carefully.

For diners, one of the most exciting changes is the drop in GST on eating out. A burger meal that earlier had 12 – 18% GST will now carry just 5%, making dining more affordable and encouraging people to step back into restaurants again.

Overall, these reforms feel like a step in the right direction. By reducing complexity for operators like us and improving consumer value, it gives quick-service brands the chance to scale faster while staying competitive.”

The post Industry Outlook: What GST reform means for India’s FMCG and food sector appeared first on Business of Food.