E-Malt.com News article: EU & India: Imported beer, wine to get cheaper in India thanks to proposed free trade agreement with the EU

Imported beer, wine and spirits are set to become significantly cheaper once the proposed free trade agreement (FTA) between India and the European Union comes into force, with steep cuts planned in existing import duties, News18 reported on January 27.

At present, wine and spirits attract a tariff of 150%, while beer faces an import duty of 110%. Under the FTA, these duties will be reduced to 40% on alcohol and 50% on beer. Officials said the reduction in duties on wine and spirits will be phased in over a few years. For instance, the import tax on wine is expected to fall from 150% to 75% in the first year, before being gradually brought down to the agreed minimum level.

The European Union, comprising 27 countries, is among the world’s largest producers of alcoholic beverages. European brands enjoy strong aspirational value among the urban middle class, but high prices have so far restricted their reach. Popular imported beers sold in India include Dutch brand Heineken, Belgian labels Stella Artois and Leffe, Germany’s Warsteiner, Denmark’s Carlsberg and Ireland’s Guinness.

Trade data show that India imported spirits worth $64.9 million from the EU in 2023–24, a figure that industry experts expect to rise sharply after the duty cuts. Premium European alcoholic beverages such as France’s Moet & Chandon champagne, Italy’s Prosecco, Spain’s Rioja wines and Sweden’s Absolut vodka are already available in India, but remain out of reach for many consumers due to high import taxes.

Industry estimates suggest the impact on retail prices could be substantial. For example, a 750-ml bottle of Heineken beer with a factory price of around Rs 850 currently attracts a 110% tariff, pushing its landed cost to nearly Rs 1,785 and its retail price to as much as Rs 3,000. With the duty reduced to 50%, the landed cost could fall to about Rs 1,275, bringing the retail price closer to Rs 2,000.

Similarly, a bottle of Absolut vodka that earlier sold for over Rs 4,000 may be priced between Rs 2,500 and Rs 3,000, while a mid-range French wine costing Rs 2,000 could drop to around Rs 1,200. Final prices, however, will continue to vary depending on state-level taxes and other local levies.

Cheaper imported liquor is expected to expand consumer choice and provide a boost to tourism and hospitality sectors, particularly hotels and restaurants. Greater availability of premium wines and spirits could also make India more attractive to international tourists.

According to experts, alcohol imports from the EU could double by 2032, creating a market worth €3-5 billion for European exporters. At the same time, the FTA is likely to intensify competition for domestic players such as Kingfisher and local spirits manufacturers, who will have to compete more aggressively with global brands on both quality and pricing.


28 January, 2026