The Indian food safety regulator, the FSSAI, has stated that it may introduce strict ‘red’ warning labels for packaged products that exceed national limits for added sugar, salt or saturated fats. The initiative has sparked a debate about consumers’ reliance on cheap ready meals and the ingredients used in local versions of international brands.
Briefly about the main points
- The FSSAI may decide against phasing in the new labelling requirements.
- In India, more than 101 million people live with diabetes.
- The industry is awaiting labelling for 80% packaged goods.
- Every year, Indians consume around 6 billion portions of Maggi noodles.
- Nestlé attributes the differences in recipes to local conditions, whilst a former manager also cites the cost of ingredients.
The court proceedings prompted the regulator to review its approach
The FSSAI announced the possibility of stricter labelling requirements on Thursday after Supreme Court judges raised questions about the initial plan to introduce the new rules in phases. Pressure on the authorities also mounted following a Reuters report in March that the government had yielded to lobbying Coca-Cola and groups that supported Nestlé and PepsiCo and opposed front-of-pack warnings.
The issue of sugar is of particular importance to the country. India accounts for approximately a quarter of all cases worldwide diabetes; more than 101 million of its inhabitants have the condition, whilst a further 136 million have pre-diabetes, according to figures from Novo Nordisk published in July. Medical experts attribute these high figures partly to the consumption of processed foods.
Supporters of public health and influencers have recently been calling for stricter regulations. India has been discussing the idea of warnings on the front of packaging for years, but manufacturers have opposed this, partly because of the high sugar or fat content in many traditional dishes.
Rapid market growth is driving up prices for manufacturers
According to estimates by the IMARC Group, The Indian packaged food market grew from $129.18 billion in 2025 to $137.25 billion in 2026, and by 2034 it could reach $238.83 billion. Demand is driven by households with incomes below the global average, who are active consumers of low-cost food and drink.
The All India Food Processors’ Association states that, under the proposed regulation, 80% of packaged products could be labelled as having a high fat, sugar or salt content. By way of comparison, research shows that following the adoption in Chile of a 2016 law featuring separate black octagons for each excess nutrient, purchases of sugary drinks fell by 23.7%.
Maggi has become a symbol of the debate over the ingredients used by local brands
Around 6 billion portions of Maggi Masala two-minute noodles are eaten every year in Indian homes and on the streets. Nestlé launched the country’s first brand of instant noodles in 1983, targeting its advertising at working mothers and children who needed a quick snack after school or play.
All options Maggi products manufactured in India contain palm oil, whilst many British versions use the more expensive sunflower oil. Indian KitKat bars also contain less cocoa than their Australian counterparts. A former senior manager at Nestlé, who asked not to be named, explained that more expensive ingredients could push up prices in a cost-sensitive market.
Nestlé has stated that it develops recipes taking into account local tastes, food culture, the availability of ingredients and climatic conditions. The company has assured consumers that regional variations do not affect quality, and that the product’s ingredients are clearly listed on the packaging; it has over ten regional KitKat recipes worldwide.
These low-cost formulations were developed over decades
Western manufacturers of packaged food have been operating in India for around a century. Nestlé began selling sweetened condensed milk in what was then a British colony in 1912. In 1937, Unilever launched Dalda – a hydrogenated vegetable fat that was a much more affordable alternative to traditional ghee.
To keep prices low, foreign companies were quick to set up local production facilities. A former manager at Mondelez’s Indian division Parul Sharma, who was in charge of supermarket sales, said that recipes for very budget-conscious shoppers had been created decades ago and had been kept ever since. According to her, consumers had long taken well-known brands for granted.
Loyalty to a particular flavour hinders rapid changes to recipes
Thums Up — a cola tailored to local tastes — has become a brand worth over $1 billion, sold in India and exported to the Indian diaspora. Coca-Cola acquired it for approximately $60 million in 1993 and initially planned to gradually replace it with its own flagship drink, but retained it due to consumer loyalty. The company did not respond to a request for comment.
Unilever has stated that over the past five years it has significantly reduced the sugar and salt content across its product range and is promoting healthier diets. Sharma cited consumer attachment to familiar flavours as one of the main barriers for large manufacturers: a drastic change to a recipe, she said, could cost a brand its loyal customer base.
