NEWS
INDIA TO GRADUALLY REDUCE TARIFFS ON EU WINES TO 20% IN FREE TRADE DEAL
By Staff Reporter
28-1-2026
Source: Doubao
The European Union and India finalised a historic free trade agreement (FTA) on Monday, ending nearly 20 years of on-and-off negotiations with a transformative overhaul of India wine and spirits tariffs that will unlock India’s fast-growing beverage market for European producers.
The deal, covering 2 billion consumers and a quarter of global GDP, delivers immediate relief for EU winemakers: India will slash wine tariffs to 75 percent upon implementation, with phased reductions to 20 percent for premium wines and 30 percent for mid-range wines, making European wines significantly cheaper in India.
Duties on spirits, including vodka, rum, gin and whisky, will be reduced to 40 percent, and on beer to 50 percent.
For EU wine powerhouses France, Italy, Spain and Portugal, the tariff will level the playing field against Australian and South African competitors, which have long benefited from lower duties in India.
The two sides will also establish a joint EU-India working group on wine and spirits to streamline regulations, align labelling standards and address non-tariff barriers—critical for navigating India’s fragmented state-level alcohol rules. spiritsEUROPE, the bloc’s industry body, called the deal a “game changer.”
The FTA mandates India cut duties on 96.6 percent of EU goods by value, while the bloc will eliminate tariffs on 99.5 percent of Indian exports—including textiles, gemstones and pharmaceuticals—within seven years.
“This secures the highest level of market access India has ever offered any trade partner,” European Commission President Ursula von der Leyen said in a statement. “For our winemakers, it breaks open one of the world’s most dynamic emerging markets.”
The FTA requires ratification by the European Parliament and India’s Union Cabinet—expected to take five to six months—before full enforcement within a year.
Analysts project EU wine exports to India could double in five years, targeting a USD400 million market growing 12-15 percent annually.
(the writer can be contacted at: info@thewinechronicle.com)
ALL RIGHTS RESERVED
**IF YOU THINK THE WINE CHRONICLE IS WORTH SUPPORTING, PLEASE MAKE A DONATION TO HELP US IMPROVE AND CONTINUE OUR WORK**
TRENDING│ FOCUS│ MISSION│ ABOUT US│ CONTACT
| 