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The EU has concluded a comprehensive trade agreement with India, through which the tariffs for wine exports to India will be halved immediately from 150% to initially 75%. The goal of the agreement is to gradually reduce the tariffs to 20% thereafter. Overall, the contract, which is to be implemented from January 2027, is expected to save four billion euros in duties annually and open up a common market of two billion people. The EU aims to double its goods exports by 2032 as a result.
The opportunities for wine trade in India are considered high. Currently, high taxes and tariffs, cultural factors, marketing restrictions, and weak distribution structures are hindering growth. However, these factors are increasingly being dismantled. Forecasts predict an average growth rate of wine sales of over 16% per year between 2025 and 2033. Reasons for this include rising disposable incomes, increasing urbanization, and the expansion of wine tourism. Most wine consumers are between 25 and 44 years old, with Millennials aged 25 to 34 making up 45%. They are considered adventurous and enjoy trying new grape varieties and wine styles – from bold red wines to sparkling wines to fresh white wines. Wine is also preferred as a lighter alternative to spirits, writes the service website Best Wine Importers.
At the same time, lower taxes along the entire supply chain would mean better margins for wine importers, distributors, and retailers, and also create room for diversifying the offerings. India's five most important wine import countries are Australia, Italy, Chile, Spain, and France. According to Best Wine Importers, European wines currently have particularly good chances, as wealthy Indian consumers are increasingly seeking premium wines.
Before the agreement can be implemented, it still needs to be ratified by the European Council and the European Parliament, which commentators say could prove to be "arduous." However, "sensitive agricultural products" are deliberately excluded, and imports from India must continue to comply with the EU's health and food safety regulations.
(al)
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