Free-trade deals with US, EU turn India into superhighway for global luxury

February 20, 2026

India's Taj Mahal in Agra is one of the most visited tourist sites in the world

For decades, we have spoken of the "Incredible Indian Luxury Bazaar" as a paradox – a land of deep-pocketed maharajas, nawabs and modern-day tech-titans, yet one guarded by some of the most formidable tariff walls in the world. But as we stand in February 2026, the walls have not just been breached – they have been re-engineered into a gateway.

The recent landmark trade resolutions with the European Union and the United States represent the final shedding of India’s protective cocoon.

For the first time, the Indian luxury consumer is being treated as a global citizen, and the global luxury brand is finally being treated as a domestic partner.

Automotive shift: From prohibitive to performative
The headlines are buzzing about the India-E.U. free-trade agreement slashing car duties from a staggering 110 percent to a phased 10 percent. But look deeper. This isn't just about Ferraris becoming "cheaper." It’s about a fundamental shift in manufacturer strategy.

Previously, the "CBU" (completely built unit) was a sacrificial lamb to high taxes, forcing brands to limit their Indian portfolios to "safe" models.

With the new quota-based liberalization, expect a "halo effect." We will see the arrival of limited-edition supercars, high-performance EVs and niche enthusiast models that were previously too expensive with which to experiment.

Watch out: The Swiss-India synchronicity
Building on the EFTA deal with Switzerland, we are seeing a seven-year roadmap to zero duty on Swiss watches. This is a death knell for the "grey market."

For years, Indian HNW individuals bought their Patek Philippe in Dubai or Geneva. Now, the "India Price" is harmonizing with the "Global Price."

Retailers in India are no longer just service centers. They are becoming experience centers. The luxury watch is moving from a smuggled trophy to a celebrated, locally-sourced investment.

Abhay Gupta is founder/CEO of Luxury Connect and Luxury Connect Business School

Gourmet revolution: Spirits, wines and the modern palate
One cannot ignore the liquid gold in these deals.

The reduction of wine and spirit tariffs (from 150 percent down to 75 percent, and eventually 30 percent) is a game-changer for the hospitality and alcohol-beverage sectors. It makes fine Bordeaux and Italian vintages accessible to the rising middle-management class, not just the billionaire.

Simultaneously, with the removal of duties on European cosmetics, we are moving from "masstige" to "true luxury" in the beauty and wellness vanity case.

U.S. deal: Sparkle returns to supply chain
While the E.U. deal focuses on access, the U.S. deal focuses on strength. By rolling back punitive tariffs on Indian gems and jewelry from 50 percent to 18 percent, we have secured the back-end of luxury.

As Indian exporters see their margins restored, that "new money" is being reinvested – not just in factories, but in luxury real estate and branded residences, fuelling a domestic demand for bespoke lifestyle interiors.

Decoding success via the 5C’s
In my book, The Incredible Indian Luxury Bazaar, I discuss a success model built on the 5C’s. These new trade deals hit every pillar of that framework:

Confidence: Brands now have the "regulatory certainty" to invest in flagship stores rather than just franchised corners.

Culture: The Indian consumer is no longer "burdened" by the cost of being Indian. They can consume luxury with a clear conscience.

Connection: Global prices allow for a seamless connection between the Indian consumer and the global brand story.

Curation: Lower duties allow brands to bring their entire global collection to India, not just the "safe" bestsellers.

Consumer: We are moving from a market of "potential" to a market of "performance."

CEO’s playbook: Navigating the new Indian corridor
To capitalize on this legislative Golden Era, global leadership must move from a distribution mindset to a partnership mindset:

Price harmonization: Use the tariff reductions to align Indian recommended retail prices with global hubs such as Dubai or Singapore. This captures the leisure spend that previously leaked out of the country.

Institutional investment: Shift from shop-in-shops to flagship experiential maisons. The trade deals provide the long-term regulatory certainty required for significant capital expenditure in Indian prime real estate.

Portfolio expansion: The entry-level strategy is over. With lower cost barriers, introduce your high-complication timepieces, niche fragrances and limited-edition automotive trims that were previously cost-prohibitive.

Bottom line
We are witnessing the birth of a bi-directional luxury corridor.

India is no longer just a sourcing hub for the West's textiles or a dumping ground for their end-of-season stock. We are a sophisticated, digitally-native and, now, fiscally-integrated luxury superpower.

To the global CEOs sitting in Paris, Milan, London and New York: The waiting game is over. The "Mother of All Deals" has arrived. It’s time to stop looking at India through a telescope and start building on its soil. The Incredible Indian Luxury Bazaar is finally open for business – without the baggage.

Abhay Gupta is founder/CEO of Luxury Connect and Luxury Connect Business School, Gurgaon, Haryana, India. He is also author of “The Incredible Indian Luxury Bazaar.” Reach him at [email protected].

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Free-trade deals with US, EU turn India into superhighway for global luxury

Free-trade deals with US, EU turn India into superhighway for global luxury

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