Experts said this will improve access for Indian consumers and strengthen retail supply chains.
The India-US trade framework is expected to widen Indian consumers’ access to American brands especially at the premium end in categories such as cosmetics, personal care, wines and alcoholic beverages and advanced electronic products. It will also enable retailers to stock up on more premium options. At the same time, the US is liberalising access to its market for categories such as processed food products from India such as jams and fruit pulps.
Experts said this will improve access for Indian consumers and strengthen retail supply chains. At the same time, it will enable Indian players to ramp up value-added exports to the US.
Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat, “The interim India–US trade deal could translate into wider choice for the consumers and more competitive pricing. India’s decision to cut duties on products such as cosmetics, medicines, medical devices, hearing aids, alcoholic beverages is likely to lower import costs and improve access to global brands and advanced products. At the same time, the US opening its market to processed food items from India, including jams and juices, creates new growth opportunities for Indian FMCG and food brands. Overall, the deal supports better consumer access, strengthens retail supply chains, and enables Indian consumer companies to scale up value-added exports.”
Suresh Nair, Indirect Tax Partner, Consumer Products and Retail Sector, EY India said retailers, especially the organised chains, stand to gain from lower costs, which could let them stock iup more premium options and drive higher sales volumes. “As part of the 2026 trade framework, India has agreed to lower or eliminate import duties on US-made cosmetics and high-end personal care products. This move is designed to offer Indian consumers better access to global brands while lowering input costs for the domestic beauty and wellness industry. This concession was strategically chosen because it does not directly threaten India’s mass-market MSME sector,” he added.
processed foods
“Elimination of US tariffs on a wide range of processed foods is significant. Previously facing duties as high as 50 percent, Indian exports such as fruit juices, jams, jellies, and fruit pulps will now enter the US market at zero duty. This opening is expected to provide a massive boost to Indian food processing units and farmers, allowing “Made in India” value-added products to gain a dominant foothold in the US consumer market without the burden of reciprocal taxes,” Nair stated.
At the same time experts believe as more American brands become directly available in India, competition is likely to pick up. However, premium segments of such products are expected to see more heightened competition while mass-market categories that rely mostly on local or other Asian supply chains are unlikely to see much impact.
Published on February 8, 2026
