The new partnership agreement between the European Union and India, signed on January 27 in New Delhi, opens up an unprecedented scenario for European and Italian wine, which until now has played only a marginal role in what is currently the world’s most populous country. This was underlined by Unione Italiana Vini (UIV), which described the commercial benefits for the wine sector as “significant,” thanks to a substantial reduction in tariff barriers.
Wine Tariffs in India: Gradual Reduction Down to 20%
According to UIV, the agreement provides that India’s current federal import duties on wine—set at 150%—will be immediately halved and then progressively reduced, reaching a threshold of 30% within seven years.
For wines priced above €10 per bottle, the final tariff rate will be further reduced to 20%.
The trade association also reports that a separate agreement is foreseen for the protection of branded products, an element considered strategic for safeguarding European appellations and geographical indications on the Indian market.
Frescobaldi (UIV): “Wine Needs Business Diplomacy”
UIV President Lamberto Frescobaldi described the EU–India agreement as a long-term opportunity, both economically and geopolitically. As reported by UIV, Frescobaldi stressed that the Indian market—characterized by a rapidly growing middle class—represents a concrete opportunity to broaden the commercial reach of Italian wine.
According to Frescobaldi, the agreement takes on even greater importance when considering that around 60% of Italian wine exports are currently concentrated in just five countries. In this context, the deal with India—alongside the Mercosur agreement, for which UIV is calling for provisional implementation—is seen as a clear signal of the relevance of so-called “business diplomacy” at a time marked by global geoeconomic tensions.
Export Figures: India Still Marginal, but Growing
Data provided by UIV highlight a strong imbalance: while total Italian wine exports amount to approximately €8 billion, exports to India have so far reached just €2.6 million, with the entire European Union accounting for only €7.7 million. This marginal presence is largely attributed to the high 150% tariff, which has severely restricted market access.
The EU–India agreement—linking two economic blocs that together represent nearly one quarter of global GDP—will now need to continue through the validation and ratification process by European institutions.
Is India the New “El Dorado” for Wine? Producers’ Perspectives on EU–India Agreement
The outlook outlined by the agreement is also shared by several producers. According to Diego Cusumano, India represents the new “El Dorado” for Italian wine, not only as a domestic market but also as a gateway to Southeast Asia, including countries such as Thailand, Indonesia, and Vietnam, where wine culture is still underdeveloped and per-capita consumption remains low compared to beer.
Cusumano notes that with previous tariffs set at 150%, a quality Italian wine could end up costing 12 to 14 times its ex-cellar price, effectively making market access prohibitive. This dynamic has resulted in around 70% of Italian wine exported to India being positioned in the entry-level segment, while premium categories were largely dominated by French producers.
Accelerating Growth of Italian Wine Exports to India Despite Barriers
Despite the protectionist environment, recent data point to growth in Italian wine exports to India. According to producer sources, exports have reportedly reached a value of around $33 million, with a +14% increase recorded in early 2026 and volumes of approximately 1 million liters. Italy would thus rank as the second-largest foreign wine supplier in India, behind Australia and ahead of France, with a 17% market share in value terms.
Wine, Tourism, and Made in Italy: A Strategic Multiplier
According to producers, the EU–India agreement also represents a cross-sector opportunity for tourism and the promotion of Made in Italy. Wine and food are identified as key tools for telling the story of Italian territories and stimulating inbound tourism, extending beyond the country’s most established destinations.
In this context, Cusumano has called for stronger institutional involvement in terms of investment in communication and promotion. He suggested a targeted use of resources from the Ministries of Agriculture, Made in Italy, and Tourism, with operational management entrusted directly to producers and industry professionals. Such a strategy, he argues, would generate higher value returns than more generic promotional campaigns.
