European wines are poised to become noticeably more affordable in India under the new India-EU Free Trade Agreement, which includes a substantial reduction in tariffs on alcoholic beverages. Wines from well-established regions such as France, Italy and Spain are expected to enter the Indian market at far more competitive prices, improving both their accessibility and presence across retail and hospitality channels.
What Are The Tariff Cuts On Imported Wines
Under the agreement, India's tariff on wine imported from European markets, currently 150 per cent, will drop to 75 per cent upon the FTA coming into force. Over the next five to ten years, this will be further reduced to 20 per cent for premium wines and 30 per cent for mid-range wines.
Wine priced below 2.5 euros will not receive any concessions, a safeguard designed to protect India's domestic wine market.
Tariffs on spirits will also fall, from as high as 150 per cent to 40 per cent.
These phased reductions aim to improve affordability without causing sudden disruptions for Indian producers, who have been seeking stability in an increasingly competitive alcoholic beverages market.
Popularity Of French Wines In India
French wines hold a strong appeal in India due to their long-standing global reputation for quality, craftsmanship, and heritage. France is consistently among India's top sources of imported wine. Consumers in metro cities gravitate toward well-known French labels such as Chateau Batailley, Chateau Haut-Brion, and various Bordeaux and Burgundy producers, which are often seen on curated hotel and restaurant wine lists.
French wines are admired for their terroir-driven character, centuries-old winemaking traditions, and internationally recognised classification systems like the 1855 Bordeaux ranking, all of which contribute to their prestige.
Key European Wine Brands In India
- Maison Louis Jadot (France): Popular for Burgundy Pinot Noir and Chardonnay, often found in luxury restaurants.
- Les Cordeliers (France): A well-structured, fruity Bordeaux red.
- Bisol Belstar (Italy): A popular Italian Prosecco.
- Peppoli Chianti Classico (Italy): A top choice for Italian red wine, often featuring Sangiovese grapes.
- Vincent Girardin (France): High-quality Burgundy wines available through specialised importers.
Impact On Indian Wine Prices And Availability
With the steep reduction in tariffs, European wines from France, Italy and Spain are expected to become significantly cheaper in India. As tariffs fall over time, distributors may expand their portfolios, increasing availability across retail outlets, hotels and restaurants in major cities.
However, the impact will be gradual. State-level duties, logistics costs and distributor margins will continue to play a role in determining final retail prices, but a noticeable downward shift is expected in the premium category.
What Wine Experts Say About Tariff Cuts
Magandeep Singh, Sommelier, writer and beverage expert, says reduction of duties is always a great move. "It has to be accompanied by a reduction in state taxes and other formalities like registration, as well as the FSSAI processes and requirements. Only then does business stand to grow."
Talking about how the India-EU FTA could shape wine consumption in India, the sommelier said, "Indian consumer behaviour won't drink more but will certainly upgrade their tipple. This, in turn, will make the market more competitive."
Impact On Local Wine Producers In India
Singh adds, "Local players too will up their game. If good and established foreign wines become cheaper, local wines too will have to keep up with quality. But I feel they, too, will need concessions as they will have a big burden of taxes and other legislation fees to grapple with already, and without those being reduced, they will be at a disadvantage."
Impact Of Wine Tariff Reduction On Indian Consumption
According to the beverage expert, alcohol overall has been declining nationwide (also globally), and a lot of it has to do with cumbersome processes and the high cost of doing business.
The new tariffs will ease some of these problems. "Since we already have a similar FTA with Australia (The India-Australia Economic Cooperation and Trade Agreement (ECTA), which came into force in December 2022, significantly reduces tariffs on Australian wines, particularly targeting high-value bottles) and something was being worked out with the US too for Bourbon (In February 2025, India significantly reduced import duties on U.S. bourbon whiskey from 150% to 50% as part of broader trade negotiations to increase bilateral commerce), overall, it would make the retail shelf more interesting. It will also enable local FNB to compete at a global level with world-class products."
"Chianti and Barolo No Longer For Just Special Occasions"
"The India-EU trade agreement is a landmark development for us at Aditya Birla New Age Hospitality," says Sukul Kundan, Format Director-Operations. "At our CinCin restaurant, Mumbai, it finally levels the playing field for authentic European ingredients. The biggest impact is on wine, lowering duties from 150% to the 20-30% range, which means iconic labels like Chianti and Barolo can now be priced accessibly, allowing us to completely reimagine our wine-by-the-glass programme. These wines will no longer be reserved for special occasions; they'll become part of an everyday dining experience."
Cost-Cutting For Fine Dining Restaurants
"Imports could cut costs for upscale restaurants like La Soiree Kolkata," says Chef Sandeep Yadav, "enabling more wine pairings, olive oil infusions in Mediterranean dishes, and cheese boards without premium markups. This might expand menus, attract foodies, and lift sales by 10-20% in fine dining, based on similar post-FTA trends in other markets."
Chef Jyotika Malick, Olive Cafe & Bar Kolkata, adds, "There would be a plethora of good-quality wines available at a more affordable price. Great option for consumers, but it might put our local wine companies at risk, as a lot of people have that as a lower cost."
Reciprocal Impact On Indian Wineries And Exports
The India-EU FTA offers reciprocal benefits. Indian wines will receive duty concessions in EU markets, creating new opportunities for producers, especially in locations with a sizeable NRI (Non-Resident Indian) population. While the premium segment may see increased competition from European labels, Indian wineries retain an advantage in the entry-level and mid-range tiers due to favourable pricing and growing local appeal.
The exclusion of European wines priced below 2.5 euros from duty cuts helps protect domestic producers, who dominate the affordable and mid-market categories.
The FTA may encourage Indian wineries to improve product quality, strengthen branding and invest in wine tourism to maintain their competitiveness in a changing market.
What Consumers Can Expect
- Cheaper European premium wines over the next 5-10 years.
- Lower prices for spirits such as cognac, premium gin, vodka, and whisky.
- Greater availability of imported labels in retail and hospitality settings.
- No change in budget wine prices, protecting domestic producers.
- More diverse wine options as the market expands and competition increases.
A Broader Trade Shift Beyond Wine
The India-EU trade agreement is designed to make bilateral trade faster, cheaper and more efficient by reducing tariffs and simplifying administrative processes. Beyond alcoholic beverages, the FTA includes tariff reductions on machinery, chemicals, medical equipment, processed foods, and several agricultural goods. The agreement is expected to strengthen economic and political ties between the two regions at a time of global uncertainty.
For India's wine landscape, the FTA marks a significant turning point. It promises greater choice and better pricing for consumers, while pushing domestic producers to innovate and compete in a more open market.
