India, Jan. 30 -- The proposed India-EU trade deal is expected to gradually lower costs for fashion, lifestyle and food brands trading between the two regions, paving the way for more international labels in Indian malls and opening up opportunities for Indian exporters. However, it is also likely to intensify competition for domestic players in categories such as cosmetics, spirits and premium foods.

Against this backdrop, the retail sector hopes Union Budget 2026 will help create a more level playing field by fine-tuning taxes, duties and incentives. The industry is looking for measures that ease doing business, spur consumption, and support expansion through an infrastructure push into smaller cities, without straining the fiscal math...