The Confederation of Indian Alcoholic Beverage Companies (CIABC) has lauded the implications of the free trade agreement between India and the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland. The agreement, which promises a phased reduction of customs duties, is anticipated to catalyze the growth of the domestic wine sector.
CIABC Director General, Vinod Giri, expressed optimism regarding the agreement's potential to propel the domestic wine industry forward. Giri emphasized the significance of time-bound customs duty reductions, asserting that they would bolster the competitiveness and sustainability of the Indian wine market.
According to details outlined in the agreement documents, wines imported from EFTA countries will witness duty concessions akin to those extended to Australia. Notably, there will be no concessions for wines priced below USD 5. However, for wines priced between USD 5 and USD 15, a gradual reduction in duties from 150% to 50% over a decade is anticipated. For wines priced at USD 15 or above, duties are expected to decrease from 150% to 25% over the same timeframe.
Giri underscored that the trade deal is poised to facilitate easier access to high-quality wines from EFTA nations while safeguarding the interests of the domestic wine industry, particularly by setting the concessions threshold above the price range predominantly occupied by domestic producers.
Giri highlighted the potential for the agreement to stimulate investments in the Indian wine sector and enhance product quality through exposure to superior wines.
"The India-EFTA trade deal will help in providing easier access to high-quality wines from EFTA countries without affecting the domestic wine industry adversely by ensuring that the concessions cut-off remains above the lower price segments where most of the domestic industry operates," Giri remarked.
Giri also commended the 10-year timeframe allocated for the gradual reduction of customs duties, deeming it conducive for domestic producers to enhance their competitiveness and align their product standards with global benchmarks.
"The deal is similar to India's trade deal with Australia which ensures no cross effects. The domestic wine industry supports over 6,000 grape-growing farmers," he added.
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