In the 2021 calendar year, Australia exported almost $12 million of wine to India, the highest figure ever, according to the latest data released by industry body .
During this period, Australian exporters shipped wine to 112 destination markets, with the most significant growth coming from exports to South Asian and Asian countries.
For India, the growth was up 81 per cent as compared to the previous calendar year.
Highlights:
- India currently has a 150 per cent tariff for alcoholic beverages
- 'Now is the right time to start improving market access for Australian wine exports to India,' says Indian-origin winery owner in Victoria
- Australia is the sixth largest wine producer and the fourth largest wine exporter in the world
"Volume also increased by 71 per cent to 2.5 million litres in India, and 74 per cent of this volume of wine was red wine," Wine Australia spokesperson Hannah Bentley told SBS Hindi.
However, wine experts say the Indian market is not an easy one to crack as import taxes on wine are high and the landscape is quite unique.
"Reducing tariffs on wine imports will make India a more attractive market for Australian wine exporters. Ultimately, a bilateral arrangement between the two countries would contemplate mutual acceptance of each other’s winemaking and wine labelling practices," the Ms Bentley added.
Paramdeep Ghumman, the owner of , arrived from India with his wife Nirmal in 1981.
In 1991, the couple bought 50 acres of cattle farmland in the state’s Mornington Peninsula region to set up their vineyard, which produces nearly 800 cases of wine each year.
He told SBS Hindi, “Shiraz wines are most popular among all types. Most of the Indians who visit my winery like Australian shiraz.”
Paramdeep Ghumman, owner of Victoria-based Nazaaray Estate Winery. Source: Supplied by Nazaaray Estate Winery
“There is a demand, especially in the middle and upper-middle class in India, as they are becoming more aware of the wine culture. So there is a big opportunity for Australian wines to penetrate this market," Mr Ghumman said.
“But tax laws in India are punishing and that needs to be reformed,” he added.
In 2021, overall wine exports from Australia dipped by 30 per cent in value to $2.03 billion. says it has been due to the imposition of high deposit tariffs on bottled Australian wine imported to China, the continuing impact of the global freight crisis, and a counter-swing in some markets after COVID-19-related stockpiling in 2020.
Australia is now looking to tap the Indian market and hopes to achieve lower tariffs on wines as part of the free trade agreement (FTA) currently being negotiated.
People taking a tour of an Australian winery. Source: Getty Images/Peter M. Fisher
On his visit to India last year, Australian trade minister Dan Tehan said, “I can’t go into the details of the negotiations. What I can say is that there is nothing I would enjoy more than being able to provide India with some of Australia’s fine wines... at more affordable prices. That is something that we will be looking to achieve.”
India-based wine expert Nikhil Agarwal told SBS Hindi that wine culture has grown significantly in the country, with Australia's Jacobs Creek wine among the most popular labels.
"Indian people are drinking wine far more than ever before. Many hotels and restaurants in India have added wine programs to their menus, which sell easily in many metro cities," said Mr Agarwal, who is CEO of All Things Nice, a consulting and events firm that focuses on the wines and spirits sector.
, from Victoria, is one of the few companies to have launched their range of wines in India during the pandemic.
Barokes Wine sales and marketing director Irene Stokes told SBS Hindi, “India is a big market for us. It has a growing middle class and young people. Our product is targeted at those who are looking for quality wine products.”
Victoria-based Barokes Wines has launched canned wine in India during the pandemic. Source: Supplied by Irene Stokes
According to Ms Stokes, growth for Barokes Wines has been steady ever since they released their wine-in-a-can products in India.
She said the company is hoping for an increase in wine consumption once the country recovers from the pandemic.
"If India and Australia are able to work out a trade deal and reduce wine tariffs, it will make India a more attractive market for Australian wine exporters like us,” she commented.
Listen to the podcast in Hindi by clicking on the audio icon inside the picture at the top.
