European wines are set to become cheaper in the Indian market under a bilateral free trade agreement (FTA) as the Indian government has agreed to reduce import duties on these products.
This means that wines imported from countries like France, Italy and Spain will face lower taxes in India, making them more affordable and widely available to consumers.
Currently, imported wines in India are subject to a steep import duty of 150%. However, under the pact, this duty will be reduced to 75%. According to an official statement from the European Commission, it will eventually be reduced to 20% for premium wines and 30% for mid-range wines.
According to a PTI report, there will be no duty concessions on cheaper wines costing less than 2.5 euros.
Indian wines will be cheaper in EU countries
Indian wines will also benefit from the agreement, which, according to the agency’s report, will receive concessions on import duties in European Union (EU) member countries. This was a key demand of the European Union during the negotiations.
Under the deal, India will offer tariff concessions to EU wines in line with what it has agreed for Australia and New Zealand, but with slightly lower thresholds.
In the alcoholic beverages segment, India’s exports to the EU include wine ($1.4 million in 2024-2025), blended whisky, vodka, brandy and liqueurs ($24.5 million). Wine ($7.9 million), blended whiskey, brandy, gin, tequila, vodka and liqueurs ($87.8 million) are imported.
When will India-EU FTA be signed?
India and the EU announced the conclusion and completion of negotiations on a free trade agreement on Tuesday 27 January. The final agreement is expected to be signed later this year and could enter into force early next year.
India-EU Free Trade Agreement negotiations were finally concluded after a long hiatus of 18 years, marking a major milestone in bilateral trade relations. The talks, which began in 2007, have gone through several rounds of delays due to Delhi’s reluctance to cut tariffs in some areas, while the European Union has been reluctant to ease visa restrictions for Indian professionals, Reuters reported.
European Commission President Ursula von der Leyen commented on the development: “Today, the EU and India are making history and deepening the partnership between the world’s largest democracies. We have created a free trade zone with 2 billion people, with both sides poised to gain economically.”
Von der Leyen’s visit to India, accompanied by EU leaders, comes at a time of heightened geopolitical tensions, with US President Donald Trump threatening to impose reciprocal tariffs on all countries, including the EU and India, by April.
