by Subhash Arora
The market for imported wines is expanding in India at a brisk pace, posting an impressive growth of 80% over the twelve months to March 2006. According to the latest figures released by the Indian customs authorities, US $5.24 million wine
were exported to India in the fiscal year from April 2004 to March 2005. That figure was up to almost US $10 million for the same period this year. These figures do not reflect wine smuggled illegally into the country or the hand carried bottles by travellers, which together still form a significant part of the consumption according to analysts.
In value, wine from France accounted for almost half of total imports. Italy was number two, followed by Australia. Due to the duty free imports by the hotels, which form the bulk of buyers, more higher priced wines are being imported, explaining the spurt in value terms. Thus, although value increased by 80%, volume was up only 30-35%.
Although duties remain high, with the sales of wine now allowed in supermarkets in Mumbai, and new air-conditioned stores in Delhi stocking hundreds of wine labels, an explosion in foreign wine sales is afoot and the number of new importers increasing at a fast pace.
