The Sleeping Giant
The Sleeping Giant: Is India the Next Frontier for Global Wine?
For decades, the global wine industry has looked toward Asia for its next great growth story. While China dominated that narrative for years, a new contender is stepping into the spotlight. Following in the footsteps of Thailand—which saw a surge in momentum after slashing wine tariffs—India appears to be approaching its own historic inflection point.
With a population of nearly 1.5 billion and a rapidly evolving social landscape, the "sleeping giant" of the wine world may finally be waking up.
The End of the 150% Wall
The primary barrier to wine's growth in India has long been financial. For nearly two decades, negotiations for the India–EU Free Trade Agreement (FTA) remained stalled. Now finalized, the agreement is being hailed as a "historic step" for the alcoholic beverage sector.
The most transformative change lies in the tariff structure:
The Premium Shift: Import duties on European wines priced above €2.50 will plummet from a staggering 150% to as low as 20%.
Domestic Safeguards: To protect local vineyards, wines priced below that threshold will receive no concessions, preventing "dumping" and ensuring Indian producers aren't undercut by low-cost bulk imports.
Expected to be fully implemented in 2026, this deal aligns India with its existing trade pacts with Australia and New Zealand, creating a competitive, accessible market for high-quality global labels.
From Whiskey Kings to Wine Enthusiasts
To understand the scale of the opportunity, one must look at the current landscape. Historically, India has been a spirits-dominated market. Whiskey—specifically Scotch—has long been the "status drink" of choice.
According to World Health Organization (WHO) data, India’s alcohol consumption is overwhelmingly skewed toward spirits:
Spirits: ~92.8%
Beer: ~7.1%
Wine: <0.1%
Currently, per-capita wine consumption in India sits at a mere 0.04 litres. When compared to global leaders, the room for growth is staggering:
The potential for an "increase of scale" is massive. We already see this transition in the Indian diaspora; in the UK and US, Indian consumers are increasingly opting for wine at restaurants. As religious and social taboos around alcohol continue to soften back home, wine is perfectly positioned to capture the new Indian palate.
A Lifestyle Shift: Beyond the Nightclub
The real driver of this change isn't just a trade deal—it’s a cultural pivot. In major hubs like Mumbai, Delhi, and Bangalore, the definition of "nightlife" is being rewritten. The loud, high-energy nightclub is no longer the default destination for the urban middle class.
