India, a country of over 1.4 billion people, often draws wide-eyed optimism from international wine producers. But according to Vinodh Shankar, General Manager of Sales at Sonarys— India’s biggest fine wine importer and one of the country’s oldest —this enthusiasm is frequently built on dangerous misconceptions.
“Many people think that just because India has a huge population, they’ll sell a lot of wine,” Vinodh said during our interview. The reality, as they will quickly find out, is far from how the maths works.
A Market Built on Complexity
Unlike many wine markets in Asia, India’s is not only nascent but notoriously complicated. Importers must navigate a fragmented regulatory landscape where each state operates almost like its own country.
At the heart of the challenge is India’s intricate tax structure. Each state imposes its own rates on top of the federal 150% import tariff on wines and a few states decidedly remain dry. To complicate the matter, much similar to the US, India has its three-tier system, adding more layers to wine imports and distribution.
“There are 30 different states, and each one has its own rules, registrations, and taxes,” Vinodh explained. “You don’t need a state-level license per se, but you do have to register in every state you want to sell in.”
And that’s just the beginning. Getting a new wine into India can take anywhere from 15 to 18 months, according to the industry veteran, thanks to bureaucratic procedures like mandatory back-label changes, and label registrations.
It’s a market that requires a lot of patience, capital, and long-term thinking, he warned. Wine at the moment accounts for less than 5% of market share, he estimates, behind spirits and beer. “Wine consumption is less than 5% of the total alcohol market in India. It’s growing year by year, but the rate is still small.” he adds.
10x More Expensive
Another significant barrier to growth is pricing. India imposes exorbitantly high duties on imported alcohol, with compounded markups across the distribution chain. According to Vinodh, a wine that retails for €2 in its home country could end up 10 times more expensive by the time it reaches an Indian consumer.
And that doesn’t even account for hospitality margins.
“Hotels mark up wine even more—sometimes more than 10 times,” Vinodh said. “This makes it difficult for consumers to enjoy wine frequently. They’ll only drink when the weather cools or on special occasions.”
As a result, price sensitivity remains a defining trait of the market. Over 85% of all wine sales in India happen under ₹5,000 (roughly USD 60) per bottle at retail, with only a sliver of consumers dipping into premium wine.
As a result, price sensitivity remains a defining trait of the market. Over 85% of all wine sales in India happen under ₹5,000 (roughly USD 60) per bottle at retail, with only a sliver of consumers dipping into premium wine.
A Market of Many Importers, But Few Players
Despite its scale, India is not flooded with wine importers. Vinodh estimates there are around 150 registered wine importers, but only 15 companies operate consistently and import across multiple regions.
“The rest are one-time or small-time importers. They’ll bring in a single container and disappear,” he said.
Having just celebrated its 50th anniversary two years ago, Sonarys brings in fine wines from Bordeaux, Burgundy, and Tuscany, and has been training many of the country’s five-star hotels in wine service.
Rising Wine Bars and Glimpses of Change
Despite the challenges, the wine landscape in India is evolving—slowly but steadily. Vinodh highlighted the rise of dedicated wine bars in metro cities like Bangalore, Mumbai, and Delhi.
“We now have wine-only bars like Wine in Progress, Fireside, and Trippy Goat,” he said. “They only serve wine. And they offer premium wines by the glass, which lets consumers try wines they couldn’t otherwise afford.”
These bars are helping build a wine culture from the ground up, giving curious drinkers access to better quality and broader education. Sonarys was also the first to introduce WSET education to the country, which has since grown in popularity among hospitality professionals and consumers alike.
No Fine Wine Frenzy—Yet
Unlike China, which saw a Bordeaux-fuelled fine wine boom in the 2000s, India has yet to experience a similar rush.
“The fine wine segment is growing, but it’s still very small. There’s more awareness among collectors, but it hasn’t reached the scale. It’s a small circle,” Vinodh noted.
Imported wine remains modest, with 6.5 million liters of wines imported based on government data, and Australia dominating with a 50% share. In comparison, domestic wine production—led by Sula, Grover, and Fratelli—accounts for nearly 2 million cases annually.
Advice for International Producers
Events like ProWine Mumbai are beginning to play a vital role in connecting global producers with India’s evolving wine trade. This year’s edition scheduled from October 31 to November 1 is expected to attract more than 180 exhibitors and 6000 visitors.
As the market matures and more producers show interest in India, trade shows like ProWine are becoming increasingly valuable for building local relationships and gaining on-the-ground perspective—an essential first step for any serious player eyeing the market.
But a presence at trade shows alone isn’t enough. Vinodh cautions that success in India requires far more than a booth and a business card. For anyone eyeing India’s wine market, Vinodh’s advice is crystal clear. For those without patience or long-term vision, India is not the place to play.
“Absolutely,” he said. “That’s the honest truth. Without patience and long-term commitment, they won’t succeed in India.”
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