Are you already dreaming of bountiful champagne soirées and affordable Bordeaux Grand Crus? Hold the thought, because it might take a little longer for these dreams to become reality, though ultimately, the consumer will be left smiling.
TheEU-India trade agreement announcedon India’s Republic Daythis year, has generated much excitement. This‘mother of all deals’encompassesmultiple industries, and among them, wine.Forthe beleaguered European wine industry, the announcementhas comeat a time of stagnantgrowth, compounded by the high tariffs imposed by the US.As a result,Indianimporters andjournalistshave beeninundated with requests for information andassistanceto start the process of bringing European wine into India.The mood is upbeat.
Theinitialannouncementstatedthat the 150% central import duty would be reduced over time to 20% for wines in the premium range, to 30% to midrange wines
| Photo Credit:
petrenkod
Theinitialannouncementstatedthat the 150% central import duty would be reduced over time to 20% for wines in the premium range, to 30% for midrange wines.But isthis all?WhileIndiaisthe world’s fourth largest economywith a population of 1.45 billion peoplewithan annual GDP of €3.4 trillion,alcohol istaxedprimarily by individualState governments.
Topmarketsfor alcoholic beveragesincludeMaharashtra (Mumbai), Karnataka (Bengaluru),and Delhi,amongothers,butseveral states arecompletely dry (no alcohol),whileotherslevyvarying taxes andcesses.Excise duty, the primary tax levied by the states, is built intoconsumerretail prices.Variable State-imposedVAT furtherimpactsprices.There is no one size fit all scenario as far as sales ofwine(or any alcoholic beverages)in India is concerned, makingthe Indian wine marketcomplex to understand.
Topmarketsfor alcoholic beveragesincludeMaharashtra (Mumbai), Karnataka (Bengaluru),and Delhi,amongothers.
| Photo Credit:
fcafotodigital
Leading importer Nikhil Agarwal of Anggels Share reveals that his phone has been ringing off the hook. “Many European producers are suddenly seeing India as a saviour of the wine world: it’s not quite so.” However, he adds, the trade agreement sets India’s wine industry on the right path. “There are multiple factors to consider: like the high Euro rate against the INR. Even if my producers freeze their prices, costs will increase due to this instability.” Nikhil does not expect things to change overnight, but says “It will keep things stable, so I am very positive in the long term.”
Wine cellar in ancient building in Tuscany, Italy
| Photo Credit:
RCerruti
Top importer, Vishal Kadakia of Wine Park, has been known for introducing new styles and premium wines in the market. In 2024, he imported orange wines by iconic Friuli producer Radikon, and recently introduced the first Galician Albariño in the Indian market.
He says, “The part I am happiest about is that the wine consumer wins. In a growing wine market like India’s, this allows consumers to experiment, try new styles, regions, and grapes and better-quality wines overall as the customs duty drops. I foresee an increase in wine sales across the board, which will positively impact wine retail and growth in wine bars.”
Premium and mid-range wines are where the impact will be felt most, rather than entry-level as duty reduction would apply only to wines above a minimum import price of Euro 2.50 per bottle. His TRE, a Sangiovese-Merlot-Cabernet blend by iconic Tuscan producer Brancaia, might see a 20% drop in price from ₹4,295 to ₹3,450 in Maharashtra, he estimates, while the Ilatraia by the same producer might drop from ₹ 12,895 to ₹9,995.
Grapes being harvested in a vineyard
| Photo Credit:
kaisersosa67
Others, likeAmrita SinghDipWSET, co-founder, Cellar 33, aBordeaux-based internationalexportand marketing company,havealready begun introducingniche European wines via theirProject India.“This is a phased reduction, not an overnight reset. Duties willreducegraduallyover years, with biggest benefitsforpremium and mid-rangeEuropean wines rather than entry-level categories.”
Thiscalibrated approach ishow India has structuredprevioustrade agreements, she adds,withfirst tangible changespost-ratification likelybecomingapparentin2027 with a greater impact playing out over thefollowing5-7 years. “From a trade perspective, this is a long-term structural shift rather than a short-term pricing story. Retail prices will not automatically fall in proportion to duty cuts, asState taxes, distribution costs and importer strategies will continue to playmajor roles.”
Delhi-based importer and co-founder,Aristol,SumitSehgalbelievesthe trade agreement will bring focus to new marketslike India.“That said, structural barriersin the Indian system,such as label registration requirements, state-wise excise frameworks, and complex compliance procedures must also be addressed to fully unlock the FTA’s potential. With aligned efforts from policymakers, producers, importers, retailers, and the hospitality sector, the agreement canturn into a sustainable, long-term growth story for India’s wine ecosystem.”
Sumit says the current market is already inclined towards premiumisation despite current taxes: a good sign indicating that India as a market is ready to take off. However,he cautions,“There is a pressing need for brand building by EU producers, alongside sales. This is expensive and time consuming but pays off in the long run.” Having successfully introduced 15 high-quality grower Champagne producers through two leading Indian importers last year, Cellar 33 understands Indian market sentiments well, Amrita adds. “This recent trade agreement reinforces our belief that India is a strategic, long-term market where patience, education and trust are just as critical as policy changes.”
There is a pressing need for brand buildingbyEUproducers,alongside sales, says Sumit Sehgal of Aristol
| Photo Credit:
ViewApart
Nikhil agrees. In 2020, the sweet spot for a spend on a bottle was ₹2,000; today this has risen. People are rethinking spends on wine.” He tells of a Mumbai customer who recently bought 18 bottles of Meursault at ₹18,000 per bottle and returned a week later for more
. “In the case of Australia, signatory of the AI-ECTA in 2022 with India, the signing was followed up with strong support by Australian government agencies and producers, is thus showing results. “As more countries sign trade deals with India, the market will open further,” concludes Nikhil. “In the end, it will be a win-win situation for the consumer.”
Published – February 05, 2026 05:08 pm IST
