Amid a global surge in trade protectionism, free trade negotiations between India and the European Union have entered the fast lane. Whether the two sides can seal a deal by the end of the year is being closely watched as a measure of India’s openness and the EU’s external strategy. For the wine industry, the stakes are particularly high: if India’s steep tariffs of up to 150% are lowered, the emerging market of 1.4 billion people could quickly unlock its potential.
An EU senior official said Tuesday that talks on the free trade agreement (FTA) with India have reached a decisive stage, with negotiators working intensively to secure a deal before year’s end. According to previous EU statements, the agreement could lead to substantial reductions in Indian tariffs on European wines.
The EU is India’s largest trading partner in goods. In the 2023/24 fiscal year, bilateral trade reached USD 137.5 billion — nearly double the volume from a decade ago.
Officials said the EU is pressing India to slash tariffs on automobiles, medical equipment, wines, spirits, and dairy products, while India is seeking greater market access in textiles, pharmaceuticals, steel, and petroleum products.
The agreement has long stalled over India’s reluctance to lower tariffs in sensitive areas. The EU has insisted India reduce duties of over 100% on imported cars, whisky, and wine.
“We are now maximising our efforts to finalise negotiations by the end of the year,” EU trade chief Maros Sefcovic said at an event. He said both sides were working toward a deal that would “unlock investment, reduce barriers, expand market access, and enhance supply chains, to the benefit of both sides.”
Sefcovic was joined in New Delhi by EU Agriculture Commissioner Christophe Hansen, who this week is leading key talks on agriculture, dairy, and non-tariff barriers in an attempt to bridge divides.
India’s Trade Minister Piyush Goyal echoed the remarks, saying negotiators were “working hard for a balanced and mutually beneficial deal” that would open up new opportunities in trade, investment, technology transfer, and deeper economic engagement.
Thanks to its 1.4 billion-strong population, India has emerged as one of the fastest-growing wine markets. According to official data compiled by us, the country imported 2,585,127 liters of wine worth USD 12.55 million in the first half of 2025, with volumes up 50.3% and value up 20.9% year-on-year.
But high tariffs continue to constrain expansion. Wine entering India faces federal import duties as high as 150%, in addition to state-level taxes, creating steep barriers to entry.
The impact of tariff reductions is already evident in the case of Australia, now India’s top wine supplier following the signing of a bilateral free trade agreement. In the first half of 2025, Australia exported 1,005,262 liters of wine worth USD 3.37 million to India, accounting for 38.89% of volume and 26.85% of value of India’s total wine imports.
Under the Australia-India Economic Cooperation and Trade Agreement (ECTA), tariffs on wines priced above USD 15 have already been reduced to 75% and will fall to 25% by 2032. For wines priced between USD 5 and USD 15, tariffs dropped to 100% in 2022 and will fall further to 50% by 2032.
India’s commerce ministry said wine imports from EU countries totaled USD 4.05 million in the first half of 2025, up 4% year-on-year, slightly higher than imports from Australia. Industry observers expect that if tariffs and non-tariff barriers are lowered further, European wines could see significantly stronger growth in India’s expanding market.
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