The EU‑India free trade agreement is set to reshape the food and beverage (F&B) landscape on both sides, with billions in tariffs set to disappear. Indian exporters are eyeing new opportunities in spices, tea, and processed foods, while European producers, particularly in dairy and sugar, are bracing for increased competition.
Tariff cuts under the deal could significantly boost EU exports of wine, spirits, and olive oil to India. For instance, wine duties may fall from 150% to as low as 20%, while olive oil tariffs will drop from 45% to zero within five years. Confectionery, bread, and other processed agricultural products could also enter India at lower costs, expanding market access for European producers.
For India, the agreement opens doors to the EU market, facilitating exports of specialty products like organic, plant-based, and sustainably produced foods. Harmonized safety standards and labeling requirements will ease cross-border trade, although Indian companies will need to meet the EU’s strict regulations. The pact also encourages technology sharing, with European firms likely to invest in India’s food processing sector.
European dairy, beef, chicken, rice, and sugar are excluded from immediate liberalization but face concerns over potential future exposure. While dairy tariffs remain unchanged, processed products like milk powders could face new competition from Indian imports, prompting both sides to reconsider support mechanisms and market protections.
The deal is particularly positive for the spirits and wine industries. EU spirits exporters will see tariffs cut by half, eventually reaching 40%, unlocking growth in India, the world’s second-largest spirits market. Wine exporters gain similar advantages, with duties halved initially and gradually reduced further, while protections for Geographical Indications like Champagne and Sherry are reinforced.
Overall, the EU‑India FTA promises a mixed but dynamic impact on the F&B sector: wider opportunities for exports, more competitive imports, and potential innovation in production and processing, all while testing the resilience of sensitive domestic industries.