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Export Market Guide - India

This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.

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All regulatory information for exporting wine goods to India, including the regulatory environment, duties and taxes, and permitted additives.

Australia’s close proximity to India, in comparison to America and Europe, gives Australian exporters a slight advantage. Not only are there freight cost benefits, but diplomatic relations are fairly strong due to shared beliefs in democracy and common interests such as the Indian Ocean and cricket.

 

In 2006 the Government of India constituted a Food Safety Standards Authority of India (FSSAI) with the objective of consolidating various food laws and establishing a single regulatory agency. The principal laws are the Food Safety and Standards Act 2006 and its various regulations published in 2011. The Food Safety and Standards (Alcoholic Beverages Standards) Regulations 2018 came into force on 21 March 2018 with enforcement of the standard from 1 April 2019. The Food Safety and Standards (Labelling and Display) Regulations 2020 came into force on 17 November 2021. Imported wine must also comply with the Food Safety and Standards (Import) Regulations 2017.

The Legal Metrology Act 2009 and the (Packaged Commodities) Rules 2011 are administered by the Ministry of Consumer Affairs, Food, and Public Distribution. The Central Board of Indirect Taxes and Customs administers the Customs Act 1962, the Customs Tariff Act 1975 and the Finance Bill 2004.

The Australia–India Economic Cooperation and Trade Agreement (AI ECTA) now in force

The first reduction in tariffs on Australian wine occurred on 29 December 2022. Tariffs on premium Australian wine exports to India are now substantially reduced under the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA). AI-ECTA provides an immediate cut to the 150% federal tariff on wine imports. Bottles priced between US$5.00 and US$15.00 will see tariffs reduced to 100% and 50% in 10 years. Bottles priced US$15.00 and over will see taxes reduced to 75% and 25% after 10 years.

When the AI ECTA came into force, a phased reduction of tariffs commenced for premium Australian wine imported into India. Import tariffs on wines priced above US$5 per bottle CIF value (cost, insurance and freight) are now at 95 per cent and will reduce to 50 per cent over ten years. Import tariffs on wines priced above US$15 per bottle CIF have also now reduced to 70 per cent and will reduce to 25 per cent over ten years. Prior to the reduction of tariffs, US$5 per bottle CIF roughly translated to AUD$8 per litre free on board, which would retail for approximately INR₹3,000 in most of India. While these price points currently represent a small portion of Australia’s wine exports, it is expected the AI ECTA will make India a more attractive proposition for small to medium winemakers who have not previously considered entering the market. Furthermore, the AI ECTA helps support dialogue about trade and technical matters relating to wine, further strengthening the relationship between India and Australia.

According to Euromonitor’s Export Market Development Guidebook for India, wine consumption is expected to grow from 29.2 million litres in 2020 to 55.5 million litres by 2025, thanks to a rising middle class, increasing urbanisation, an inclination towards imported wine, and a shift in consumer preferences from hard spirits towards wine. In the 2021 calendar year, India imported 5.6 million litres of wine, up 84 per cent from the previous year. Australia was the main contributor to this growth.

In the year ending September 2022, Australia exported 3.6 million litres of wine valued at AUD$16.2 million free-on-board to India. This was an increase of 41.5 per cent in volume and 48 per cent in value compared to the year ended September 2021.

It’s important to note that India is a newly emerging market for wine, where consumption is currently is modest – even when compared to other alcoholic beverages. However, the wine culture in India is growing as consumers discover and learn more about wine and it’s exciting that Australian wines are part of this discovery.

 

 



This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.

Levy payers/exporters
Non-levy payers/exporters
Find out more

This content is restricted to wine exporters and levy-payers. Some reports are available for purchase to non-levy payers/exporters.