Historic India-EU Trade Agreement Promises Wine Revolution

The India-EU trade pact marks a significant step forward, introducing tariff reductions on wines and spirits. Industry bodies lauded the move, describing it as 'historic.' While providing EU wines better market access, the agreement still safeguards domestic interests by imposing duty cuts only on high-end imports.

The recently concluded India-EU trade agreement is being hailed as a "historic" move by industry bodies, promising significant tariff reductions on wines and spirits. The pact, set to be operational by 2026, seeks to offer cheaper access to premium European wines while safeguarding domestic industry interests.

Under the terms, import duty on expensive EU wines will drop dramatically from 150% to 20%, a significant win for the European Union. However, for wines priced below 2.5 euros, tariffs remain unchanged, protecting more than 80% of India's domestic market from foreign competition.

Key industry players, such as CIABC and BAI, welcomed the agreement's potential to invigorate India's wine culture. However, they remain vigilant about issues such as undervaluation and rule violations that could lead to unfair competition and financial losses for local producers.

(With inputs from agencies.)