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European wines will enter the Indian market at reduced prices under a free trade agreement that will significantly lower import duties. Indian wines will also gain access to EU markets, with concessions announced for both sides.
European wines are set to become cheaper in the Indian market under the 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 such as France, Italy and Spain will face lower taxes in India, making them more affordable and widely available for consumers.
At present, imported wines are subject to a steep import duty of 150% in India. However, under the pact, this duty will be reduced to 75%. Eventually, it will be slashed to as low as 20% for premium wines and 30% for mid-range wines, as per an official release by the European Commission.
Meanwhile, for cheaper wines, which cost below 2.5 euros, there will be no duty concessions, as per a report by PTI.
Indian wines to get cheaper in EU nations
Indian wines will also benefit from the agreement, as they will receive import duty concessions in the European Union (EU) member countries, according to the agency report. This was a key demand by the European Union during the negotiations.
Under the agreement, India will offer duty concessions to wines from the EU 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 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, and Liqueurs ($87.8 million).
When will the India-EU FTA be signed?
India and the EU announced the conclusion and finalisation of negotiations for a free trade agreement on Tuesday, 27 January. The final deal is expected to be signed later this year and may come into force from early next year.
The India-EU FTA talks were finally concluded after a long gap of 18 years, marking a major milestone in bilateral trade relations. The negotiations, which started in 2007, went through several rounds of delays due to Delhi's reluctance to lower tariffs in some areas, while the European Union was reluctant to ease visa curbs on Indian professionals, Reuters reported.
Commenting on the development, European Commission President Ursula von der Leyen said: “The EU and India make history today, deepening the partnership between the world's biggest democracies. We have created a free trade zone of 2 billion people, with both sides set to gain economically.”
Von der Leyen's visit to India, accompanied by leaders of EU nations, comes at a time of heightened geopolitical tensions and as US President Donald Trump has threatened to impose reciprocal tariffs on all nations, including the EU and India, by April.
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