European wines to cost less under India-EU FTA

In the alcoholic beverages segment, India's exports to the EU include wines ($1.4 million in 2024-25), blended whiskeys, vodka, brandy, and liqueurs ($24.5 million).

European wines are set to enter the Indian market at lower prices under the bilateral free trade agreement as India will provide import duty concessions under the pact, an official said.

Under the pact, the duty on EU wines would fall from 150 per cent to 20 per cent (for expensive ones).

For wines priced below 2.5 euros, there will be no duty concessions.

Indian wines, too, will get duty concessions in the EU member countries.

India and the European Union (EU) on Tuesday announced the conclusion and finalisation of negotiations for a free trade agreement.

The agreement is expected to be signed later this year and may come into force from early next year.

The talks were concluded after 18 years. The negotiations started in 2007.

Under the agreement, India will be giving duty concessions to the wines of the European Union (EU) in line with what it has agreed for Australia and New Zealand, but with slightly lower thresholds.

It was a key demand for the EU.

The official said Indian wine too will get market access in the EU, which can cater to the demands of the growing Indian diaspora.

The EU will eliminate duties for Indian wine.

"Like auto, wine is one of the biggest exportable items for the Indian industry.

"So for them, it is very important. And we have given duty concessions in a calibrated way.

"The duties will be reduced in seven years," the official said.

India has given similar timelines for the sector in its FTA with Australia and New Zealand.

India has followed the model used in its Australia trade deal, under which wine tariffs fall gradually over 10 years.

India has also received a quota-based reduction in duties on table grapes from the EU.

The EU imports about $1.4 billion worth of table grapes annually.

"We have got duty-free access for around $100 million, that is 85,000 tonnes of grapes.

"India can export at MFN (existing duty) rates also," the official said, adding that duty concessions are there for EU whiskies also.

Commenting on the development, industry body ISWAI, which represents the imported premium portfolio of spirits and wine brands in India, said this agreement focuses on tariff reduction and is mutually beneficial for trade offering significant strategic benefits for both markets.

ISWAI CEO Sanjit Padhi said that detailed provisions of the agreement are awaited, however, initially released agreement indicates that the proposed reduction in import tariffs from the current 150 per cent to 75 per cent across all EU spirits & wines categories from the entry into force of the agreement is a clearly "welcome development".

"The agreement further outlines that the tariffs will then be lowered to 40 per cent for spirits and as low as 20 per cent on wines in a phased approach," he said, adding, "India's increasingly aspirational and discerning consumers will gain improved access to premium international brands at more accessible price points."

This broader choice is expected to enhance the overall consumer experience, accelerate premiumisation within the alcobev (alcoholic beverage) sector, support growth in allied sectors such as tourism and hospitality, and contribute positively to state revenues, said International Spirits & Wines Association of India (ISWAI).

In the alcoholic beverages segment, India's exports to the EU include wines ($1.4 million in 2024-25), blended whiskeys, vodka, brandy, and liqueurs ($24.5 million).

The imports are wines ($7.9 million), blended whiskeys, brandy, gin tequila, vodka, liqueurs ($87.8 million).