While the India–EU Free Trade Agreement opens up several sectors, apples and wine are two segments where India has allowed limited competition but retained safeguards to shield domestic producers.
In apples, India currently imports around 20% of its annual requirement, largely from Iran, Turkey and Afghanistan. Under the FTA, the government has built a minimum import price (MIP)-linked quota into the agreement, ensuring that the landed price of imported apples will not fall below Rs 96 per kilogram, offering a clear buffer for Indian farmers.
Crucially, the tariff-free quota for EU apples is capped at 50,000 tonnes, which is lower than India’s current annual import volume of 56,000–57,000 tonnes. This ensures that duty-free access does not expand imports beyond existing levels. At the same time, Indian apples gain full tariff-free access to the EU market over a five–seven-year period, opening up export opportunities for domestic producers in the medium term.
The wine sector follows a similarly calibrated approach. Wine remains a niche segment in India, accounting for less than 1% of the overall alcohol market. Under the FTA, low-priced wines (up to 2.5 euros) receive no tariff concessions. Medium-priced wines between 2.5 and 10 euros will still attract a 30% duty, while premium wines priced above 10 euros will face a 20% tariff, ensuring imports remain largely in the premium category.
On the export side, Indian wines receive zero-tariff access to the EU, either immediately when the FTA comes into force or in a phased manner over three to seven years, offering domestic producers a chance to tap global markets.
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