January 13, 2015

Within the next five years 100 million Indian consumers will reach the country’s legal drinking age of 25, and by 2017, wine consumption in the country is expected to increase to 2.1 million cases per year – a 73% increase over the 2013 consumption rate of 1.21 million cases. Although only a small percentage of the country’s population fits the right combination of age, income level, religious beliefs and exposure to be considered a potential wine drinker, because of the county’s vast population, this number amounts to 24 million consumers. Last year India’s wine industry saw an increase in production of 73% year on year to reach an output of 17 million liters, and export sales increased 40% year on year reaching a value of US$4.4 million in the first seven months of the year. In 2015 the Indian government and the newly formed Indian Grape Processing Board (IGPB) are set to finalize the aligning of Indian wine standards with those of the International Organization of Vine and Wine, a move likely to spur state reforms in the industry and create a more stable investment climate in the sector. Challenges exist, as each Indian state has the power to set independent licensing, taxation, and registration regulations and the industry as a whole faces a complex system of regulations and lack of storage, modern processing facilities, and sufficient infrastructure to currently realize its full development potential. However, the Indian government is promoting foreign direct investment in the country’s wine industry and is moving to reduce barriers to investment and trade in the coming years. To read further:

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