India is emerging as a potential new Eldorado for the Mediterranean Diet—and for Italy’s flagship food and wine exports. With an estimated 150 million consumers in the middle- to high-income bracket—around 10–15% of a population of 1.5 billion—the country represents a sizeable addressable market for Italian wine, olive oil, and a wider range of agri-food products, from fresh produce to biscuits and chocolate.
Until now, this affluent market has remained largely out of reach for European producers, primarily due to steep import duties: tariffs of up to 150% on wine and 45% on olive oil have significantly limited the presence of Italian specialties on Indian tables.
That landscape is set to change following the signing of a free trade agreement between the European Union and India. Currently, Italian agri-food exports to India are marginal when compared with global figures. Olive oil exports to India amount to just €3.8 million, against total worldwide shipments worth €2.9 billion. Wine, one of Italy’s global export champions with €8 billion in total exports, reaches only €2.6 million in the Indian market. Pasta tells a similar story, with €5.1 million exported to India versus €4.3 billion globally. These are emblematic products of the Mediterranean Diet that could now gain real traction in the Indian market.
According to Unione Italiana Vini, the agreement represents “a strategic long-term opportunity also for European and Italian wine, which is currently almost non-existent in the world’s most populous country,” particularly in light of India’s rapidly expanding middle class.
Federvini has welcomed the signing of the EU–India free trade agreement, describing it as a pivotal step in strengthening Italian and European agri-food exports. The deal is expected to consolidate the presence of European wines, spirits and vinegars in one of the world’s most dynamic commercial markets.
Signed after more than twenty years of negotiations, the agreement covers a market of over 1.4 billion consumers, historically difficult to access due to restrictive tariff regimes, including duties of 150% on wines and spirits. The deal provides for a gradual reduction in tariffs: within seven years, EU wine duties will fall to 30% for bottles priced between €2.50 and €10, and to 20% for wines priced above €10. Tariffs on spirits will be reduced to 40%. “The signing of the free trade agreement with India represents a milestone of extraordinary value for our sectors and for the European economy as a whole,” said Federvini President Giacomo Ponti.
Federvini is now calling for swift ratification in the EU, so that the entire supply chain can seize new growth opportunities and further enhance the value of Made in Italy.
L’articolo EU – India Deal Opens Big Opportunities for Italian Wine and Olive Oil proviene da Italianfood.net.