India-EFTA deal benefits the wine industry
Wines priced at $15 or more will initially see duty cuts from 150% to 75%, eventually reaching 25% after a decade
image for illustrative purpose
New Delhi: The Confederation of Indian Alcoholic Beverage Companies (CIABC), the body representing alcoholic beverage makers, announced on Monday that the free trade agreement between India and the European Free Trade Association (EFTA) - comprising Iceland, Liechtenstein, Norway, and Switzerland - will support the expansion of the domestic wine industry.
Vinod Giri, Director General of CIABC, highlighted that the time-bound reduction of customs duties to an equitable and sustainable level will assist the domestic industry.
Under the agreement, duty concessions on wine mirror those granted to Australia, with no concessions for wines priced under $5. For wines priced between $5 and less than $15, duties will be reduced from 150% to 100% in the first year, gradually decreasing to 50% over 10 years.
Wines priced at $15 or more will initially see duty cuts from 150% to 75%, eventually reaching 25% after a decade.
Giri stated, "The India-EFTA trade deal will facilitate easier access to high-quality wines from EFTA countries, safeguarding the domestic wine industry by maintaining concessions above the lower price segments where most of the domestic industry operates."
He emphasized that the agreement will also enable the domestic industry to enhance its quality through exposure to quality wines and potential investments, ultimately propelling the growth of the Indian wine sector.
Giri added that the 10-year timeline for the phased reduction of customs duties is sufficient for the domestic industry to enhance its competitiveness and product quality.
"The deal mirrors India's trade agreement with Australia, ensuring no adverse effects. The domestic wine industry supports over 6,000 grape-growing farmers," he concluded.
