India-EU trade pact to widen food, beverage choices for consumers

Wine will get cheaper as EU India agreement takes effect

• EU-India trade deal to cut tariffs on wine, beer, spirits, and processed foods
• European food and beverage products to become more affordable in India
• Indian consumers to get wider choices and lower prices on EU imports

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The India-European Union free trade agreement could significantly widen choices for Indian consumers by opening up a nearly $3 billion food and beverage market to European producers, a Moneycontrol analysis shows.

Once implemented, the deal would significantly reduce tariffs across a wide range of consumer products, including wine, beer, spirits, olive oil, pet food, and processed foods.

Currently, many European food and beverage products face prohibitive import duties, often exceeding 100 percent, sharply limiting their demand in the Indian market. The trade agreement proposes substantial tariff reductions or complete elimination across a wide range of items, making European products far more price competitive.

One of the most visible changes will be in alcoholic beverages. Wine imports, which currently attract duties as high as 150 percent, will see tariffs cut to 20 percent for premium wines and 30 percent for mid-range products. The EU already accounts for over half of India’s wine imports, supplying goods worth nearly $13.8 million out of total imports of $25.6 million. Lower duties could accelerate consumption beyond niche urban markets.

A similar story is expected to play out in spirits and beer. Spirits currently face duties of up to 150 percent, which will be lowered to 40 percent, while beer tariffs will be halved to 50 percent from 110 percent. While the EU’s current share in these categories is relatively modest—16 percent in spirits and 15.5 percent in beer—lower tariffs could help European brands gain ground against competitors from other regions.

Perhaps the biggest impact will be felt in processed foods, which form the bulk of the market opening. Imports of items such as breads, pastries, pasta, chocolates, and pet food, currently subject to duties of up to 50 percent, will become fully tariff-free.

India imported over $2.68 billion worth of processed foods, of which EU exports accounted for about $419 million. The tariff elimination could rapidly expand the EU’s footprint in this high-volume segment.

The agreement also provides full duty-free access for olive oil and other vegetable oils, where the EU already dominates with a 95.5 percent share of India’s imports. Similarly, fruit juices, non-alcoholic beer and sheep meat will see tariffs cut to zero, while duties on sausages and meat preparations will be reduced to 50 percent.

Overall, the EU-India trade deal is expected to open a $2.8–3 billion import market to European producers. For Indian consumers, this translates into greater variety, improved availability and potentially lower prices, while for EU companies, India emerges as a far more accessible and commercially viable food and beverage market than before.