As a result of the landmark free trade agreement (FTA) between the European Union and India, imported European alcohol, including premium wines, spirits and beer is set to become much cheaper than ever before in India.
Under the pact, termed as the "mother of all deals", import duties on alcoholic beverages will be significantly reduced by India. The import duties for alcohols are some of the highest in the world at present. Therefore, with the FTA and reduced import duties, consumers can expect lower retail prices and increased access to European alcohols.
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Sharp cut win wine duties
According to a statement released by the EU following the signing of the agreement, there will be a significant reduction in import levies on wines from 150 per cent to 20 per cent for high-quality wines and to 30 per cent for medium-grade.
This dramatic change will greatly reduce the retail prices of many European wines (from France, Italy, Spain and Germany) that are sold in India, thereby allowing Indian customers to buy them at a far lower price.
Beer to get cheaper
The tariff on spirits has also been reduced from a maximum of 150 per cent to 40 per cent under this agreement. Also, the import duty on beer has dropped from 110 per cent to 50 per cent, thereby greatly reducing prices on European beer brands.
As a result, India is likely to see an increase in availability of Scotch whisky, Irish whiskey (craft gins) and continental beers within large cities and tourist destinations throughout the country.
The historic deal
On Tuesday, India and the European Union signed what Prime Minister Narendra Modi referred to as the "mother of all deals", a free trade agreement after almost 20 years of negotiations that creates a massive market for a combined population of two billion people.
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Leaders on both sides agreed that this agreement would give India and the EU the ability to respond to the current economic challenges in the world and lessen their dependence on the US and China for economic development and growth.
Under the terms of the agreement, tariffs on almost 97 per cent of all exports from Europe to India will be reduced, or completely eliminated, which will provide an annual savings on duties of approximately €4 billion ($4.75 billion) for the EU's 27 member states.
Describing the deal as a historic breakthrough, Modi stated that this agreement would create opportunities for new employment for India's 1.4 billion people and millions more in Europe, and that the deal encompasses roughly 25 per cent of total global GDP and 33 per cent of total world trade, making it one of the most important trade agreements made in recent memory.
