According to The Buyer, the Indian wine market is on the brink of significant transformation. Following the signing of the India-EU free trade agreement, which aims to reduce import duties on wine from a staggering 150% to just 20%, producers are increasingly eyeing this vast market.
Despite its burgeoning potential, India remains a complex landscape for wine importers. With a population exceeding 1.45 billion, the country is the world’s fourth largest economy, yet wine consumption is still in its infancy, with per capita consumption reported at under 50 ml in 2025.
Local wine, including fruit wines, dominates the market, accounting for 84% of the total volume, while imported wines hold a mere 16%. The IWSR reports a compound annual growth rate (CAGR) of 7% for wine from 2019 to 2024, indicating a growing appetite for wine among Indian consumers.
However, the market is hindered by a complex tax structure, which includes not only the central customs duty but also various state taxes. This intricate web of regulations makes it essential for producers to understand local dynamics and consumer preferences.
As the market evolves, insights from industry leaders like Nikhil Agarwal, founder of Anggel’s Share, highlight the necessity for producers to adapt their strategies to successfully penetrate this promising yet challenging market.
