Wines from the European Union (EU) are all set to enter the Indian market at lower prices as duty concessions have been promised in the recently concluded negotiations for a Free Trade Agreement (FTA) between India and the EU.While there will be no duty concessions for wines priced below 2.5 Euros, India’s duties on expensive wines from the 27-nation bloc are slated to drop from 150% to 20% in a calibrated manner over a period of 7 years.
India has given gradual and selective duty reduction on wines. Concessions are in form of duty reduction from 150%, with final duties after reduction over 7 years pegged at 30% (For wine between €2.5 to €10) and 20% (For wine more than €10).
The move is aimed to provide the domestic industry sufficient time to expand, innovate, and enhance global competitiveness. No concession has been offered on lower-priced (less than €2.5) wine to protect domestic wine producers and grape farmers in regions like Maharashtra (Nashik) and Karnataka.Indian wine will enjoy preferential market access, with customs duties reduced from up to €32/hectoliter to zero duty, either at entry into force or phased out over 3-7 years from the entry into force of the agreement. India has secured duty-free access for 85,000 tonnes of fresh table grapes, which Commerce Ministry sources termed as a significant relief from the EU Entry Price System.A working group on wines and spirits has been constituted for exchange of information, knowledge and best practices, with an aim to ensure that market access on wine is balanced and non-disruptive, supports domestic manufacturing and exports. Currently, Wines constitute less than 1% of alcoholic beverages market in India.
India will grant duty concessions to wines and whiskies from the EU on the lines of what was agreed for Australia and New Zealand, but with slightly lower thresholds as sought by the EU.
In its FTAs with Australia and New Zealand too, India has agreed for calibrated reduction in duties over time. Similarly, Indian wines will get duty concessions in exports to EU member countries, which the Commerce Ministry indicated will cater to the demands of a growing Indian diaspora.
India’s exports of alcoholic beverages to the EU include wines (worth $1.4 million in FY 2024-25), blended whiskies, Vodka, Brandy, Liqueurs (worth $24.5 million). Imports include wines (worth $7.9 million), blended whiskeys, brandy, Gin Tequila, Vodka, and Liqueurs ($87.8 million).
The EU imports table grapes worth $1.4 billion annually, for which India has received quota-based duty reduction for exports to the EU. The Commerce Ministry said that India has obtained duty-free access for 85,000 tons of grapes costing around $100 million, apart from export at MFN rates.
(Edited by : Navneet Singh)First Published: Jan 27, 2026 11:18 PM IST
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