EU-India Trade Deal Opens Wine Door

27 Feb EU-India Trade Deal Opens Wine Door

After two decades of negotiations, India and the European Union (EU) have signed a trade deal that will see tariffs reduced across a range of European exports such as wine, spirits, beer and more.

This deal will see tariffs on EU wine drop from 150% to 20% for premium wines and 30% for mid-range wines, making European wines significantly cheaper in India. Duties on spirits, including vodka, rum, gin and whisky, will drop to 40%, and beer will decrease to 50%.

India’s wine import market is increasing at a compound annual rate of 12% and is anticipated to reach US$520 million by 2028, predominantly attributable to a burgeoning middle-class which has grown by 6.3% between 1995 and 2021 and displays an increasing interest in international food and drink.

Meanwhile, the EU will eliminate all tariffs on 90% of Indian goods, and zero tariffs will be extended to 93% of goods within seven years.

This agreement aims to boost investment flows, improve access to European markets and deepen supply-chain integration whilst enabling the EU to leverage the ever-growing wine import market of India.

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