PepsiCo’s global chairman and CEO, Ramon Laguarta, met Prime Minister Narendra Modi in New Delhi on Tuesday evening, as per sources cited by ET. The meeting marks the first time Modi has met a top US CEO in India amid rising trade tensions and new GST taxes. Laguarta was accompanied by PepsiCo’s entire board, representing the $91.8 billion company behind Pepsi Cola, Lays, Kurkure, Mountain Dew, 7 Up, Slice, and Aquafina.This is also the first time in at least a decade that PepsiCo has brought its full global board to India. The team is in the country for a three-day quarterly executive committee meeting, which rotates globally. The schedule includes a day in Delhi and two days in Hyderabad, where PepsiCo’s GCC headquarters is located. In April, Laguarta had led a similar visit with more than two dozen senior executives from the snacks division.“To have two high profile trips within five months is a clear indication of the strategic importance of India for the drinks and snacks major,” said a Pepsi official with 20 years of experience in Asia. “This is more than symbolism,” ET cited the official.PepsiCo sees India as one of its 13 core global markets, expecting it to contribute more than 85% of future growth due to the country’s low soft drink penetration and booming snacks market. The company reported 4% revenue growth in its international convenience foods business in the April–June 2025 quarter, citing “good performance in markets such as India.”Speculations have emerged that the meeting might have be cancelled due to the current trade tensions, similar to other postponed meetings with finance and Wall Street leaders, ET reported.The GST Council recently raised taxes on sugary aerated drinks from 28% to 40%, including low-sugar and fruit-based drinks. With the 12% compensation cess, the change is not expected to affect consumer prices.On Tuesday, India and the US also held trade talks in New Delhi, led by US trade representative for South Asia Brendan Lynch. The discussions come after US President Donald Trump imposed 50% tariffs on Indian exports, citing trade deficits and India’s Russian oil purchases, calling India “a dead economy.” Last week, Trump expressed optimism about reaching a trade agreement with India.PepsiCo India reported revenue of Rs 8,877 crore and profit after tax of Rs 883.4 crore for the 12 months ending December 31, 2024. The company said these figures are not directly comparable to the previous year, as it switched from a financial year to a calendar year reporting system, according to ET. Its beverages business, however, saw a decline in the 12 weeks to June 14, citing early and heavy rains, offsetting 1% volume growth in the international business.
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