High spirits, higher hopes: European wines and whiskies set to get cheaper in India

New Delhi: Imported European wines and whiskies are set to become cheaper, and Indian consumers may see an initial price drop of about 7-10% once the India-European Union free trade agreement (EU FTA) becomes effective, according to executives in the wine and spirits industry.

There will be a reduction in import tariffs from the current 150% to 75% across all EU spirits & wines categories, according to the agreement released on Tuesday. The tariffs will then be lowered to 40% for spirits and as low as 20% on wines in a phased approach.

"India's increasingly aspirational and discerning consumers will gain improved access to premium international brands at more accessible price points," said Sanjit Padhi, CEO, International Spirits & Wines Association of India (ISWAI).


This broader choice is expected to enhance the overall consumer experience, accelerate premiumisation within the alcobev sector, support growth in allied sectors such as tourism and hospitality, and contribute positively to state revenues, he added.

India imports around 10 million cases of alcoholic beverage from the European Union of which Scotch whisky alone accounts for nearly 9 million, according to industry estimates. Wines make up a smaller proportion of imports accounting for about half a million cases, out of which imports from Europe account for 30%.

Irish whiskey, an emerging premium category in India, is expected to benefit from improved market access and pricing flexibility under the FTA, said Vinod Giri, director general, Brewers Association of India.