India’s Wine Market Poised for Change as EU Wines Get Cheaper Under…

Sarah J · 2026-02-14T16:30:11.000Z

India’s wine industry is facing a significant shift as a landmark Free Trade Agreement (FTA) between India and the European Union (EU) kicks in, reducing steep import duties on European wines and intensifying competition for domestic producers like Fratelli Vineyards. Under the new trade pact, duties on imported wines previously as high as 150% are set to be phased downward to as low as 20% for premium European wines and around 30% for mid-range categories, dramatically narrowing the price gap between imported and Indian labels. This duty reduction strategy, implemented over several years, is expected to make European wines more price-competitive on Indian shelves. Gaurav Sekhri, founder of Fratelli Vineyards, has publicly acknowledged the mounting competitive pressures that imported European labels now priced closer to domestic products could bring. Sekhri cautioned that Indian wine brands may struggle to retain consumer visibility if shoppers are drawn first to well-known European marques at similar price points. Fratelli, India’s second-largest wine producer with about 35% share of the national wine market, isn’t standing still. The company has been pivoting towards more premium-and-above portfolio segments, where it has seen growing demand, and recently launched exclusive products such as its Sette 15 Anniversary luxury wine in collaboration with designer Manish Malhotra. While lower import duties present challenges, they also signal an expanding wine culture in India, where the overall market is projected to grow rapidly over the coming years. Analysis of the broader wine and spirits landscape suggests that deeper economic integration under the FTA could open India’s consumer market to nearly 2 billion European and Indian consumers combined one of the biggest wine markets globally. While European wines become more accessible, domestic producers are also increasingly premiumising and innovating to meet evolving consumer tastes. Many Indian wineries including Fratelli and market leader Sula Vineyards are leveraging wine tourism, experiential offerings and higher-value products to differentiate their brands. Asia Pacific trade analysts say the India-EU FTA still maintains protective structures for very low-priced wines, ensuring that budget segments under a certain price threshold continue to face high duties to safeguard local producers. This evolution of India’s wine market represents a clear example of how cross-regional trade policy can reshape industry landscapes and consumer behaviour. The India-EU trade pact not only enhances market access for European brands but also drives innovation and premiumisation among Indian producers.

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India’s Wine Market Poised for Change as EU Wines Get Cheaper Under… | SEINET