INDIA COULD LOWER DUTIES ON WINE ACCORDING TO PRICE RANGES, WHICH IS PERFECT FOR ITALIAN WINES. IN THREE YEARS TAXES WILL DROP FROM 150% TO 40%, OPENING TO A POTENTIALLY INFINITE MARKET

When talking about the rapidly growing emerging countries on the world economic panorama, we most often think of China, forgetting that there is another giant in Asia: India. India has more than one billion people and in 2011 a GDP growth of 7.7% (according to OECD estimates). It is definitely an appetizing market, even for the wine world, but at the moment, it has an enormous obstacle - 150% excise duties applied to “spirits”. Things could change quite quickly, however, as India is a market made up of many contrasts - there are huge pockets of poverty, but the middle class is growing and is attracted to the Western lifestyle and obviously, to good Italian and French wines.

The future scenario which will be unfolding on a three-year plan, foresees a substantial reduction of excise taxes on imported wine, down to 40%. The plan will cover two fiscal brackets: for wines costing more than 34/35 euros per case (on the Indian market a case is 12 bottles, 9 liters) the tax will be reduced from 150% to 40%; for wines priced from 20/21 euros to 34/35 euros per case, the tax will be reduced to 60%. Cases of wines priced under 20 euros will continue to be taxed 150%: this is a perfect scenario for quality Italian wines. One of the problems Italian wines have had on some markets is linked to price competition, which always means lowering the quality value of our wines. Instead, with India’s plan on reducing taxes, Italy need not fear because low cost wines will pay higher taxes, thereby guaranteeing a stable value to Italian quality.