The pact was sealed in Delhi after nearly two decades of negotiations, reducing tariffs on key European exports.
When the deal comes into effect, tariffs on EU wine will be slashed from 150% – to 20% for premium wines and 30% 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%, and on beer to 50%.
The deal comes at a time of rising geopolitical tensions with the US. India currently faces 50% tariffs imposed by President Donald Trump last year, and last week, Trump threatened tariffs on European allies for opposing a US takeover of Greenland.
‘Mother of all deals’
Speaking at a media briefing in Delhi, European Commission president Ursula von der Leyen dubbed today’s pact “the mother of all deals.” Meanwhile, Indian Prime Minister Narendra Modi said it was “historic”.
India’s wine imports are growing at a compound annual rate of 12%, according to data from the Uiv-Vinitaly Wine Observatory. The wine market in the world’s most populated country is set to hit US$520 million by 2028 (IWSR), fuelled by a burgeoning middle class which grew 6.3% between 1995 and 2021, and increasing interest in international food and drink.
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