Uncorking Opportunity - How Australian wines are rewriting India's wine story

With trade barriers easing, Australian wine is gaining traction in India like never before. Explore market trends, challenges, and how Australian wines are leading the way with

- Ankur Chawla

In the evolving world of wine, few events have the potential to transform regional consumption patterns and trade landscapes as significantly as strategic trade agreements. For the Indian wine market, one such moment is upon us, ushered in by the recently formalised Australia-India Economic Cooperation and Trade Agreement (AI-ECTA). This landmark partnership is not just about the easing of tariffs, it's about cultural exchange, accessibility and a shared vision for premium yet approachable wines.

As an Indian sommelier with deep ties to both hospitality and consumer behaviour in the country, I see AI-ECTA as a welcome catalyst for making Australian wines more relevant, visible and viable than ever before. This agreement creates not only a business opportunity but a bridge between two wine cultures, both young, ambitious and uniquely expressive.

Breaking bottlenecks, tariff reductions and market entry Historically, India's import tariffs on wine, ranging between 100% and 150%, have been a substantial barrier for international producers and importers alike. With AI-ECTA, Australian wines are now seeing a phased reduction in these duties: wines priced between US$5 and US$15, CIF (Cost, Insurance and Freight) are seeing tariffs brought down to 50% over ten years, while bottles above US$15, CIF, are expected to reach a duty of just 25% in the same period.

This reduction reshapes the pricing dynamics of wine for Indian consumers, particularly for premium wines. For a market that’s still largely price-sensitive but increasingly quality-conscious, this is a game-changer. Importers now have the latitude to curate broader portfolios with better price-to-quality ratios, while end consumers can explore new expressions without the steep mark-ups that often dissuaded first-time buyers.