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India-US deal could spice up global scene
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Tuesday, 22 July, 2025, 16 : 00 PM [IST]
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Ashwin Bhadri
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We are all well aware of the upcoming India-US trade deal. What's in it for the global food business? As India and the United States sit down to finalise what could be one of the decade’s most significant trade deals, the food and beverage industry is watching and waiting for the mystery to unravel. But think beyond the boardrooms and handshakes, what does this deal mean for the way we eat, produce, and do business in food?
At its core, this deal aims to ease market access, reduce tariffs, and align standards between the world’s biggest democracy and its oldest. But unlike previous trade talks, this one is spiced with ambition, particularly for the food sector. On one side, you have a booming Indian food market with a taste for everything from fried chicken to frozen blueberries. On the other hand, American companies want more room on Indian shelves and menus, while Indian producers want a bigger bite of the export pie from spices and rice to ready-to-eat meals and plant-based foods.
The food and beverage industry is more than just taste and texture; it’s a huge business. India’s food processing sector alone is projected to reach over $500 billion by 2030, thanks to a growing middle class, urbanisation, and shifting eating habits. For the US, which already exports products like almonds, apples, and processed foods to India, the deal could open doors wider than ever before.
With reduced tariffs and streamlined logistics, American fast-food chains, packaged food companies, and beverage giants could expand their footprint across India's 1.4 billion-strong market. You can anticipate more drive-throughs, deeper supermarket penetration, and an influx of ingredients that were once considered exotic or expensive. Meanwhile, Indian exporters are hoping for easier access to American shelves, not just in Indian stores abroad, but in mainstream grocery aisles across the US.
Of course, not everyone is about to raise a toast. There are local players in India who are concerned that relaxed trade terms could lead to an influx of cheap, mass-produced imports, putting small businesses and regional brands at risk. Indian farmers worry about competition with heavily subsidised American agriculture, while US producers are equally cautious about the rising quality and quantity of Indian agri-exports.
Still, let us stay positive for both sides. Indian food brands that have long struggled with FDA approvals and confusing US regulations may now find the path smoother. The same goes for American companies dealing with the complex Indian GST system and shifting food safety norms.
For decades, India has been known as the land of spices. But now, it wants to be more than a supplier of raw ingredients; it wants to dominate the packaged, processed, and premium food segments too. This deal could make that dream more achievable.
Ready-to-eat biryanis, organic turmeric lattes, millet snacks, and plant-based protein powders are just a few of the Indian products finding fans overseas. With better trade conditions, Indian brands could finally scale up, meet international safety standards, and ship faster and cheaper. It’s no longer just about curry powders; it’s about innovation, branding, and shelf presence.
American fast-food chains and FMCG giants have already made India their second home. But this deal could shift gears. With simplified rules and reduced import costs, franchises can experiment more with localised menus, source ingredients easily, and set up shop faster.
You have to think beyond burgers and pizzas, expect more fusion, more regional influences, and even collaborations with Indian homegrown brands. What was once a one-way street, American food entering India, may now become a two-way culinary highway.
One of the more complex areas of the deal involves labelling, food safety, and testing standards. India’s FSSAI and America’s FDA often follow different playbooks. This can make approvals slow and expensive. It is expected that the trade deal aims to align these rules, or at least create mutual recognition.
That could mean fewer compliance blocks and quicker clearances for food imports and exports. However, consumer safety remains a severe issue. If not done right, easing regulations could risk a rise in substandard or mislabelled products. Both countries will need to strike a balance, boosting business without compromising on public health.
As trade expands, so will the movement of goods by air, sea, and land. But this raises environmental questions. The carbon footprint of flying fruit across continents or increasing cold storage facilities isn’t small. India is already struggling with climate challenges, and should consider whether trade growth can also be green.
Sustainable packaging, clean logistics, and responsible sourcing must be part of the conversation. Otherwise, the environmental cost may outweigh the economic benefit in the long run.
Micro, small, and medium enterprises (MSMEs) are the soul of India's food industry. From home-based pickles to regional snack manufacturers, they represent diversity, tradition, and innovation. However, they may also be the most vulnerable if the market gets flooded with global brands.
That said, the deal also opens opportunities for MSMEs, especially if supported by government initiatives in quality control, export facilitation, and certification processes. With the right guidance, Indian MSMEs could become global food ambassadors, telling stories through taste.
Government bodies like FSSAI, APEDA, and the Ministry of Commerce are expected to play a key role in translating trade talk into action. Already, initiatives like ‘Make in India’, ‘One District, One Product’, and ‘Eat Right India’ are laying the groundwork for a more robust, export-ready food industry.
The Indian government is also expected to roll out incentives for cold chain development, food testing labs, and capacity building for exporters, making this deal not just a diplomatic win but a policy-driven transformation.
The trade deal is still being fine-tuned. Timelines are unclear, and there are sticking points on dairy, biotechnology, and subsidies. But the direction is clear, the food business is about to get a global reset.
For now, whether you’re a food entrepreneur in Mumbai, a buyer in Boston, or simply someone who enjoys a good meal, this deal could change what ends up on your plate. From burgers to biryani, the global food scene might just be getting a new policy, the one where India and the US trade align together.
(The author is CEO at Equinox Labs)
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