International Spirits & Wines Association of India (ISWAI) has termed the conclusion of India-EU FTA talks as a significant milestone for the alcobev sector. Coming after the successful conclusion of India-UK FTA recently, the agreement not only deepens trade ties between India and the EU but also fosters stronger collaboration and strategic partnership in the industry, Sanjit Padhi, CEO, ISWAI said.

“It underscores the shared commitment to fair, balanced, and mutually beneficial trade that drives sustainable growth for both regions. While the detailed provisions of the agreement are awaited, the initially released agreement indicates that the proposed reduction in import tariffs from the current 150% to 75% across all EU spirits & wines categories from the entry into force of the agreement, is a clearly welcome development”, Padhi said.

Noting that the agreement further outlines that the tariffs will then be lowered to 40% for spirits and as low as 20% on wines in a phased approach, he said that taken together, these measures under the India- EU FTA offer significant strategic benefits for Indian and EU markets. “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.”

According to Padhi, a progressive FTA reinforces India’s position as a compelling investment destination and a growing export market for the alcobev sector. “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. 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”, he added.

ISWAI members including global leaders like Bacardi, Brown Forman, Campari Group, Diageo India, John Distilleries, Moet Hennessy, Pernod Ricard, Suntory Global and William Grant & Sons have almost 98% of the business produced in India through Indian Made Foreign Liquor (IMFL), Bottled-in-India (BII) products & Indian Single Malts.