India-EU trade deal slashes wine tariffs but shields local producers by 2026
India and the European Union have finalised a free trade agreement after 18 years of negotiations. The deal includes significant tariff reductions on wines and spirits, with changes set to take effect by 2026. Industry groups have responded positively, though some call for further concessions on Indian exports.
Under the new agreement, India will lower import duties on EU wines. Expensive wines currently taxed at 150% will see duties drop to 20%. However, wines priced below €2.5 will receive no duty concessions at all.
The deal also grants Indian wines better access to EU markets through reduced tariffs. Industry bodies like ISWAI, representing premium imported spirits and wines, have welcomed the changes. They described the agreement as mutually beneficial for both regions. BAI, representing major beer producers, estimates that over 80% of India's domestic wine industry will remain unaffected by the tariff cuts. This approach aims to protect local producers from cheap imports while improving market access for high-end products. Meanwhile, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has urged the EU to remove non-tariff barriers on Indian spirits. They seek reciprocity to ensure fair trade conditions for home-grown whisky and other spirits in European markets.
The trade agreement is expected to take effect within the 2026 calendar year. It reduces duties on premium wines while shielding most domestic producers from competition. The deal marks a major step in India-EU trade relations after nearly two decades of talks.
