New Delhi:
The proposed Free Trade Agreement (FTA) between India and the European Union is expected to significantly reduce the prices of imported European beer and liquor in India. The European Union’s 27 member countries are among the world’s leading producers of alcohol, and their brands are already popular among India’s urban middle class. However, high prices have so far limited their wider consumption.
At present, imported wine and spirits attract import duties of up to 150 percent, while beer is taxed at around 110 percent. Once the India–EU FTA comes into force, tariffs on alcohol are expected to fall to around 40 percent, while beer duties may reduce to nearly 50 percent.
The reduction in duties will be implemented in phases. For example, the import tax on wine will drop from 150 percent to 75 percent in the first year, and will then be gradually lowered further over time.
→ TASMAC Introduces Demand-Based Liquor Supply System to Improve Brand Availability in Tamil Nadu→ New Home-Grown Brands Target Bigger Share of India’s $50 Billion Alcobev Market
As a result of this sharp cut in tariffs, the retail prices of popular European brands such as Heineken beer and Absolut vodka could fall by more than half, making them far more affordable for Indian consumers.
European beer brands such as Heineken (Netherlands), Stella Artois and Leffe (Belgium), Warsteiner (Germany), Carlsberg (Denmark), and Guinness (Ireland) are already well-known in India. With lower prices, demand for these brands is expected to rise sharply.
In the financial year 2023–24, India imported spirits worth USD 64.9 million from the European Union. Following the implementation of the FTA, this figure is expected to increase several times, driven by stronger consumer demand and easier market access.
About the Author
