India’s domestic wine industry is expressing concern over the long-term impact of upcoming Free Trade Agreements (FTAs), particularly as reduced import duties could increase the presence of international wines in the Indian market and intensify competition for local producers as per the GIST report.
Industry stakeholders say the Indian wine sector, while steadily growing, is still relatively young compared to established wine-producing regions in Europe and Australia. They believe the sector requires stronger policy support, infrastructure development, and brand-building assistance before facing large-scale competition from imported wines.
Speaking on the issue, Ashwin Rodrigues said the industry is closely watching India’s trade agreements with major wine-producing nations, including Australia and the European Union.
→ France Wine Production Could Fall to 70-Year Low Amid Heat and Drought; India Emerges as Potential Market→ Vinexpo Discover India 2026 Registrations Open for New Wine and Spirits Business Forum in Mumbai
According to Rodrigues, earlier trade agreements with Australia had already created challenges for domestic wine producers after import duties were reduced. He warned that a broader India-European Union FTA could further increase the inflow of imported wines into India, potentially impacting local wine makers, particularly smaller producers.
“The price difference between Indian and imported wines may narrow significantly,” Rodrigues noted, adding that some consumers could shift towards foreign labels if international wines become more affordable in the Indian market.
Despite the concerns, industry representatives believe the situation could also push Indian wine producers to improve quality standards, strengthen branding, and expand the overall wine ecosystem in the country over the long term.
India’s wine industry remains concentrated primarily in Maharashtra and Karnataka, which account for a large share of domestic wine production. While wine consumption in India has been growing gradually over the past three decades, industry experts say the sector still faces challenges related to taxation, distribution, consumer awareness, and market access.
Rodrigues also highlighted the issue of under-invoicing of imported wines, alleging that some imported products are declared at artificially low values to reduce duties and taxes. According to him, this creates pricing pressure on Indian wines and affects fair market competition.
The Wine Growers Association of India has proposed the introduction of a fixed import fee structure for wines instead of percentage-based duties. Industry representatives believe such a mechanism could create a more balanced competitive environment for domestic producers while still allowing premium imported wines to enter the market.
Apart from trade policy concerns, the industry is also seeking greater government support for wine tourism, marketing assistance, last-mile distribution infrastructure, and regulatory reforms. Stakeholders say these measures are essential for strengthening India’s domestic wine ecosystem and helping local brands compete more effectively in the future.
With India’s alcoholic beverage market evolving rapidly and premium wine consumption slowly increasing among urban consumers, the outcome of upcoming FTAs is expected to play a significant role in shaping the future of the Indian wine industry.
About the Author
