The implementation of the proposed goods and services tax (GST) will help the processed food industry,which is facing several challenges due to existing tax regime,agriculture minister Sharad Pawar said Thursday.
He also said that state-level reforms should be taken up to make the non-alcoholic beverage sector globally competitive.
The processed food industry has some issues with existing tax structure. … I am hopeful that the implementation of the proposed single GST will be beneficial for this sector, Pawar said while releasing an Icrier report on food processing industry in India.
The Icrier report has made recommendations for major reforms for improving global competitiveness of Indian non-alcoholic beverages sector.
Claiming that food and beverages account for 30 per cent of Indias consumption compared to 25 per cent in China or 17 per cent in Brazil,the report said that with rising income levels,there is a shift towards packaged food and beverages,something which can worked upon given the abundant supply of raw material like fruits and vegetables.
Pawar said that in the non-alcoholic beverages sector,major players are planning to invest around $10 billion by 2020.