“Specialized ingredients like olive oil, condiments like balsamic vinegar and mustard, dried fruits and tomatoes are certainly going to become cheaper. It will enable better ingredient access and global quality benchmarking,” said Chirag Kenia, founder and managing partner of gourmet food brand Urban Platter.
Lower duties may also open the doors to exclusive partnerships and curated international tie-ups, bringing global appeal to Indian consumers, according to Gaurav Manchanda, founder and director of The Organic World, a Bengaluru-based retailer of premium groceries and packaged food.
“Scale is meaningful only when it strengthens quality and builds long-term consumer trust. Hence, we will consider partnerships that align with our clean-label values and Indian consumption habits,” Manchanda said, noting that a greater number of international brands will now eye a share of India’s retail market.
“Reduced tariffs will allow us to explore sharper entry price points and niche global categories,” Manchanda added.
From machinery to sweet treats, the India-EU FTA will bring over 30 cheaper products for Indian consumers. After almost two decades of on-off negotiations, the deal will pave the way for India to open up its vast and guarded market, the world’s most populous, to free trade with the 27-nation EU, its biggest trading partner.
Duties on olive oil, margarine and other vegetable oils have been slashed to zero from up to 45%, while duties on processed food including breads, pastries, biscuits, pasta, chocolate and pet food have been reduced to zero from 50%.
India imported edible fruit and nuts from the EU worth ₹1,582 crore in FY25, while import of cocoa and its derivatives stood at ₹886 crore, as per data from the ministry of commerce. Dairy produce worth ₹341 crore was imported during the year.
The agreement is expected to give companies more room to improve quality and experiment with new products, especially in the premium and gourmet categories, where ingredients and sourcing make a visible difference, according to Madhur Singhal, managing partner (consumer and internet) at management consultancy firm Praxis Global Alliance.
Competition to rise
At the same time, lower barriers for imported products will likely intensify competition, forcing companies to sharpen differentiation, pricing discipline and positioning in an increasingly crowded market.
“Premium Indian food brands will face a double whammy. On the one hand, easier access to high-quality European ingredients raises consumer expectations around quality and experience. On the other hand, the same trade shifts make international brands more competitive on Indian shelves, at a time when premium consumption is already polarized and retail growth is uneven,” Praxis’s Singhal noted.
The Indian e-retail market has surged to about $60 billion in gross merchandise value, boasting the world’s second-largest online shopper base, thanks to premiumization and increasing traction from small-town India, according to a March 2025 report by Bain & Company.
Companies acknowledge the challenge.
“As price gaps narrow, storytelling becomes even more critical. Differentiation will now be driven by sourcing transparency, formulation integrity and cultural relevance,” said The Organic World’s Manchanda.
Urban Platter’s Kenia added that competition will now intensify in the mass-premium price band, especially in categories like olive oil, olives, pasta, chocolate and ambient bakery, where imports move closer to everyday purchase. But Urban Platter plans to stay out of the price war.
“We stay out of price wars by focusing on quality, clean formulations and Indian consumption relevance. Our strength is trust and repeat usage, not discount-led positioning,” Kenia said.
Brands will now need to work harder to justify their premium, not just build it, according to Praxis’s Singhal. Marketing strategies and product differentiation will now be key, he added.