Hic hic hurray! Cheaper imports are just the beginning; Inside the India–EU FTA’s big alcobev reset
The India-EU FTA significantly reduces tariffs across key categories including wine, spirits and beer, reshaping dynamics of premiumisation, quality standards and export opportunities for India’s burgeoning beverage sector.
- Jan 30, 2026,
- Updated Jan 30, 2026 12:20 PM IST
The recently concluded India–European Union Free Trade Agreement (FTA), described by both Narendra Modi and Ursula von der Leyen as a landmark “mother of all deals,” marks a strategic shift in how Indian consumers, producers and exporters engage with European alcoholic beverages and markets. Spanning nearly two decades of negotiations and covering almost 97% of goods by value, the pact significantly reduces tariffs across key categories including wine, spirits and beer, reshaping dynamics of premiumisation, quality standards and export opportunities for India’s burgeoning beverage sector.
One of the most talked-about outcomes of the India–EU FTA is the substantial tariff reduction on imported European wines. Duties on premium wines are expected to fall sharply over time, potentially unlocking access to labels that were once considered prohibitively expensive for a large segment of Indian consumers.
Kunal Patel, Managing Director, Monika Alcobev Limited, called the agreement “one of the most meaningful structural shifts we have seen for the premium alcohol industry in India.” He said, “Once the India-EU Free Trade Agreement comes into force, it will fundamentally change how premium European wines, spirits, and liqueurs are priced, invested in, and grown in this market. Lower and predictable tariffs will allow brands to reinvest aggressively into advocacy, education, and long-term brand building, which is exactly what a maturing consumer market like India needs.”
This reinvestment, industry observers note, could deepen wine culture beyond metros and luxury hotels, enabling more structured consumer education and category discovery. Patel added that for importers with strong European portfolios, the shift is particularly significant, “For companies like ours… this creates a powerful tailwind. It encourages more global brands to enter India, strengthens cocktail and on-trade culture, and accelerates premiumisation in a responsible way.”
Beyond imports, the pact could also create pathways for Indian wines in Europe, provided producers align with stringent EU quality frameworks.
India remains the world’s second-largest spirits market by volume, with whisky firmly at the centre of consumption patterns. Under the FTA, phased tariff reductions are expected to make premium European spirits more competitively priced, intensifying both competition and consumer choice.
Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), described the agreement as a pivotal moment for the sector, “Following the successful conclusion of the IND-UK FTA, the India–EU FTA marks another significant milestone for the alcobev sector… It underscores the shared commitment to fair, balanced, and mutually beneficial trade that drives sustainable growth for both regions.”
Padhi emphasised that improved access to premium brands could reshape the consumer experience while supporting adjacent industries. He added, “India’s increasingly aspirational and discerning consumers will gain improved access to premium international brands at more accessible price points. This broader choice is expected to enhance the overall consumer experience, accelerate premiumisation within the alcobev sector, support growth in allied sectors such as tourism and hospitality, and contribute positively to state revenues.”
At the same time, the agreement signals a broader evolution in India’s alcohol market. “The Indian alcobev industry is rapidly transitioning from a price-sensitive market to one driven by value creation and premiumisation, with Indian single malts leading this transformation and competing successfully with global benchmarks,” said Maj Gen (Dr) Rajesh Chopra (Retd), Director General of the Indian Malt Whisky Association, who believes the shift goes beyond trade mechanics.
Calling the India–EU FTA a structural shift for the Indian spirits industry rather than a short-term trade win, he added, “As international products enter India under a more balanced tariff framework, Indian producers will face stronger competition, which typically leads to improved transparency, innovation, and alignment with global best practices.” This would also allow easier access to Europe, which could further elevate Indian spirits globally, provided producers maintain consistency and traceability.
Patel echoed the long-term growth narrative, “Over the next decade, I firmly believe India will emerge as one of the most important growth markets for premium liqueurs and European spirits globally.” Beer, too, stands at an inflection point as tariff reductions are expected to enhance the availability and competitiveness of European brews in India’s fast-evolving market.
Avneet Singh, CEO and Founder of Medusa Beverages, who views the policy direction as a vote of confidence in the domestic industry, said, “India’s move towards freer trade is a strong signal of how confident and mature our beer market has become… As tariffs ease and competition increases, the focus will shift from simply what is available to what consumers truly choose, which is a healthy shift for the industry.”
However, he underscored the importance of maintaining a supportive ecosystem for local producers. “We see this as an opportunity for Indian beer brands to raise the bar and compete on quality, experience and culture rather than just price or origin,” said Singh. He also highlighted the export upside, noting that improved access could allow Indian brewers to “take local stories and flavours to a global audience”.
For domestic manufacturers, the FTA is as much about outbound opportunity as inbound competition. Ankur Sachdeva, Co-founder and CEO of Uppal Brewers and Distillers, believes the agreement dismantles long-held pricing perceptions. “It finally puts to rest the myth of ‘Import Mirage’, where high taxes made for high prices… This moves the industry towards genuine premiumisation.”
Highlighting that the pact creates a structural bridge for Indian brands to enter Europe, he said, “The FTA isn't simply about European imports; it’s an invitation for ‘Proudly Indian’ products to go global… If we lead with substance, the Indian craft spirit category can become a mainstay for the European consumer too.” Padhi reinforced this outward-looking trajectory, “A progressive FTA reinforces India’s position as a compelling investment destination and a growing export market… The FTA will further enable Indian brands and Bottled-in-India products to access international markets, strengthen global partnerships, and truly advance the vision of ‘Make in India’ on the world stage.”
Collectively, industry leaders see the India–EU FTA as more than a tariff story. It represents a structural transition from a protected domestic landscape to a globally integrated marketplace defined by quality, brand equity and consumer sophistication.
As Chopra noted, growth will increasingly be driven by “product strength, regulatory clarity, and international consumer acceptance”.
If executed effectively, the agreement could position India not just as a high-potential consumption hub, but as an emerging global force in premium alcoholic beverages. Thus, the real story may not be cheaper imports, but India staking its claim as the next power centre of the global premium alcohol trade.
The recently concluded India–European Union Free Trade Agreement (FTA), described by both Narendra Modi and Ursula von der Leyen as a landmark “mother of all deals,” marks a strategic shift in how Indian consumers, producers and exporters engage with European alcoholic beverages and markets. Spanning nearly two decades of negotiations and covering almost 97% of goods by value, the pact significantly reduces tariffs across key categories including wine, spirits and beer, reshaping dynamics of premiumisation, quality standards and export opportunities for India’s burgeoning beverage sector.
One of the most talked-about outcomes of the India–EU FTA is the substantial tariff reduction on imported European wines. Duties on premium wines are expected to fall sharply over time, potentially unlocking access to labels that were once considered prohibitively expensive for a large segment of Indian consumers.
Kunal Patel, Managing Director, Monika Alcobev Limited, called the agreement “one of the most meaningful structural shifts we have seen for the premium alcohol industry in India.” He said, “Once the India-EU Free Trade Agreement comes into force, it will fundamentally change how premium European wines, spirits, and liqueurs are priced, invested in, and grown in this market. Lower and predictable tariffs will allow brands to reinvest aggressively into advocacy, education, and long-term brand building, which is exactly what a maturing consumer market like India needs.”
This reinvestment, industry observers note, could deepen wine culture beyond metros and luxury hotels, enabling more structured consumer education and category discovery. Patel added that for importers with strong European portfolios, the shift is particularly significant, “For companies like ours… this creates a powerful tailwind. It encourages more global brands to enter India, strengthens cocktail and on-trade culture, and accelerates premiumisation in a responsible way.”
Beyond imports, the pact could also create pathways for Indian wines in Europe, provided producers align with stringent EU quality frameworks.
India remains the world’s second-largest spirits market by volume, with whisky firmly at the centre of consumption patterns. Under the FTA, phased tariff reductions are expected to make premium European spirits more competitively priced, intensifying both competition and consumer choice.
Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), described the agreement as a pivotal moment for the sector, “Following the successful conclusion of the IND-UK FTA, the India–EU FTA marks another significant milestone for the alcobev sector… It underscores the shared commitment to fair, balanced, and mutually beneficial trade that drives sustainable growth for both regions.”
Padhi emphasised that improved access to premium brands could reshape the consumer experience while supporting adjacent industries. He added, “India’s increasingly aspirational and discerning consumers will gain improved access to premium international brands at more accessible price points. This broader choice is expected to enhance the overall consumer experience, accelerate premiumisation within the alcobev sector, support growth in allied sectors such as tourism and hospitality, and contribute positively to state revenues.”
At the same time, the agreement signals a broader evolution in India’s alcohol market. “The Indian alcobev industry is rapidly transitioning from a price-sensitive market to one driven by value creation and premiumisation, with Indian single malts leading this transformation and competing successfully with global benchmarks,” said Maj Gen (Dr) Rajesh Chopra (Retd), Director General of the Indian Malt Whisky Association, who believes the shift goes beyond trade mechanics.
Calling the India–EU FTA a structural shift for the Indian spirits industry rather than a short-term trade win, he added, “As international products enter India under a more balanced tariff framework, Indian producers will face stronger competition, which typically leads to improved transparency, innovation, and alignment with global best practices.” This would also allow easier access to Europe, which could further elevate Indian spirits globally, provided producers maintain consistency and traceability.
Patel echoed the long-term growth narrative, “Over the next decade, I firmly believe India will emerge as one of the most important growth markets for premium liqueurs and European spirits globally.” Beer, too, stands at an inflection point as tariff reductions are expected to enhance the availability and competitiveness of European brews in India’s fast-evolving market.
Avneet Singh, CEO and Founder of Medusa Beverages, who views the policy direction as a vote of confidence in the domestic industry, said, “India’s move towards freer trade is a strong signal of how confident and mature our beer market has become… As tariffs ease and competition increases, the focus will shift from simply what is available to what consumers truly choose, which is a healthy shift for the industry.”
However, he underscored the importance of maintaining a supportive ecosystem for local producers. “We see this as an opportunity for Indian beer brands to raise the bar and compete on quality, experience and culture rather than just price or origin,” said Singh. He also highlighted the export upside, noting that improved access could allow Indian brewers to “take local stories and flavours to a global audience”.
For domestic manufacturers, the FTA is as much about outbound opportunity as inbound competition. Ankur Sachdeva, Co-founder and CEO of Uppal Brewers and Distillers, believes the agreement dismantles long-held pricing perceptions. “It finally puts to rest the myth of ‘Import Mirage’, where high taxes made for high prices… This moves the industry towards genuine premiumisation.”
Highlighting that the pact creates a structural bridge for Indian brands to enter Europe, he said, “The FTA isn't simply about European imports; it’s an invitation for ‘Proudly Indian’ products to go global… If we lead with substance, the Indian craft spirit category can become a mainstay for the European consumer too.” Padhi reinforced this outward-looking trajectory, “A progressive FTA reinforces India’s position as a compelling investment destination and a growing export market… The FTA will further enable Indian brands and Bottled-in-India products to access international markets, strengthen global partnerships, and truly advance the vision of ‘Make in India’ on the world stage.”
Collectively, industry leaders see the India–EU FTA as more than a tariff story. It represents a structural transition from a protected domestic landscape to a globally integrated marketplace defined by quality, brand equity and consumer sophistication.
As Chopra noted, growth will increasingly be driven by “product strength, regulatory clarity, and international consumer acceptance”.
If executed effectively, the agreement could position India not just as a high-potential consumption hub, but as an emerging global force in premium alcoholic beverages. Thus, the real story may not be cheaper imports, but India staking its claim as the next power centre of the global premium alcohol trade.