India-EU FTA: Which liquor brands could get cheaper with the ‘mother of all deals’

Imported European wines, whiskies and beers are set to become significantly cheaper in India following the conclusion of a “historic” free trade agreement (FTA) between India and the European Union, described by leaders of both India and EU as the “mother of all deals”.Under the pact unveiled, India will sharply reduce some of the import duties on alcoholic beverages, opening the door for lower retail prices and wider availability of premium European brands. The agreement was formally concluded on Tuesday after nearly 18 years of negotiations that began in 2007. Leaders on both sides said the deal would help India and the EU navigate global economic uncertainty, deepen supply-chain partnerships and reduce strategic dependencies. The FTA covers trade in goods and services, with tariff cuts or eliminations on nearly 97 per cent of EU exports to India, resulting in annual duty savings of up to €4 billion, according to the European Union. Calling it a historic breakthrough, PM Modi said the agreement would unlock new opportunities for India’s 1.4 billion people and millions across Europe, adding that it spans nearly a quarter of global GDP and about one-third of world trade.European Commission president Ursula von der Leyen said the FTA would combine “Indian skills and scale with Europe’s technology, capital and innovation”, adding, “It will create levels of growth that neither side can achieve alone, and by combining these strengths, we reduce strategic dependencies.”

What gets cheaper: Wines, whiskies and beer

According to officials and announcements, wine duties – currently as high as 150 per cent – will be cut sharply. Import tariffs on premium European wines will be reduced to 20 per cent, while medium-range wines will attract duties of 30 per cent. Wines priced below €2.5 will not receive concessions. Tariffs on spirits such as whisky, vodka, rum and gin, which currently go up to 150 per cent, will be lowered to 40 per cent, while beer duties will fall from 110% to 50 per cent, significantly reducing prices for European beer brands, particularly in metro cities and tourism hubs. The cuts are expected to benefit wines from France, Italy, Spain and Germany, as well as Scotch whisky, Irish whiskey, craft gins and continental beer brands.An official said India has followed a calibrated approach similar to its trade deals with Australia and New Zealand. “Like auto, wine is one of the biggest exportable items for the Indian industry. So for them, it is very important. And we have given duty concessions in a calibrated way. The duties will be reduced in seven years,” the official said.Wines

Whiskey

Vodka

Beer

How India will benefit

India has secured zero-duty or preferential access for its labour-intensive sectors – including textiles, apparel, leather, gems and jewellery, handicrafts and footwear – a core demand in all of its FTAs, which has been met in each agreement so far.The EU has also agreed to eliminate duties on Indian wines, providing new export opportunities for Indian producers catering to the growing diaspora market. India has additionally received quota-based duty reductions on table grapes, with duty-free access for 85,000 tonnes, while exports beyond that quota can continue at existing MFN rates.

Big trade numbers, strategic push

India’s bilateral trade in goods with the EU stood at $136.53 billion in 2024–25, with exports of $75.85 billion and imports of $60.68 billion, making the EU India’s largest goods trading partner. Services trade reached $83.10 billion, with India posting a trade surplus of $15.17 billion.At the joint announcement, von der Leyen praised India’s commerce minister for his role in closing the deal.“I want to offer a special word of thanks… Starting with European Union Trade Commissioner Maros Sefcovic, India’s Commerce Minister Piyush Goyal. You have done an outstanding work. This is historic and would not have been possible without you,” she said.EU trade commissioner Maros Sefcovic called it “the biggest FTA ever”, adding: “High tariffs down, opportunity unleashed. Proof that win-win trade is real and that genuine partnership… is always worth the effort.”