India-US deal: US premium brands must become more accessible to Indian consumers

Experts say this will improve access for Indian consumers and strengthen retail supply chains.

Experts say this will improve access for Indian consumers and strengthen retail supply chains. At the same time, it will enable Indian players to increase value-added exports to the US.

Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat, said: “The India-US interim trade deal could translate into wider consumer choice and more competitive prices. India’s decision to reduce import duties on products such as cosmetics, medicines, medical devices, hearing aids and alcoholic beverages is likely to reduce import costs and improve access to global brands and cutting-edge products. At the same time, the US opening its market to processed food products from India, including jams and juices, is creating new growth opportunities for India FMCG and food brands generally support greater access for consumers, strengthen retail supply chains and enable Indian consumer companies to scale up their value-added exports.”

Suresh Nair, Indirect Tax Partner, Consumer Products and Retail Sector, EY India, says retailers, especially the organized chains, can benefit from lower costs, allowing them to stock more premium options and generate higher sales volumes. “As part of the 2026 trade framework, India has agreed to reduce or eliminate import duties on US-made cosmetics and premium personal care products. This move is intended to provide Indian consumers with greater access to global brands while reducing input costs for the domestic beauty and wellness industry. This concession was strategically chosen as it does not directly threaten India’s mass market MSME sector,” he added.

processed foods

“The removal of US tariffs on a wide range of processed food products is significant. Where previously import duties of up to 50 percent were imposed, Indian exports such as fruit juices, jams, jellies and fruit pulps will now enter the US market at zero tariff. This opening is expected to provide a huge boost to Indian food processing units and farmers, allowing value-added ‘Made in India’ products to gain a dominant position in the US consumer market without the burden of cross-taxation,” Nair said.

At the same time, experts believe that as more American brands become readily available in India, competition is likely to increase. However, the premium segments of such products are expected to see more competition, while the mass market categories that rely mainly on local or other Asian supply chains are unlikely to be much affected.

Published on February 8, 2026