India’s Wine Market Set to Top $520 Million by 2028 as European Exports Surge

India is emerging as a new hub for wine consumption and distribution in Asia, drawing increasing attention from European exporters. The country’s wine market is undergoing a structural transformation, with projections indicating it will surpass $520 million in consumption value before 2028. This growth is driven by an expanding middle class and rising interest from major exporting countries, particularly Italy and other European nations. As India positions itself as a key destination for commercial diplomacy and regional redistribution, the sector is closely watching upcoming trade negotiations that could further open the market.

Recent data from the Uiv-Vinitaly Wine Observatory and analysis group IWSR show that India’s current wine consumption already exceeds $415 million. While the imported wine segment remains relatively small at around $30.5 million, analysts see significant room for expansion. If current demand trends continue between 2026 and 2034, the overall Indian wine market could approach $1 billion in value.

Italy has taken a leading role among European exporters to India, recording a 14% increase in sales—outpacing the broader market average. Italy now ranks as the fourth-largest wine supplier to India, following Australia, France, and Singapore. To strengthen its position, Italian organizations such as Veronafiere and the Italian Trade Agency (ITA) have launched coordinated efforts. In January, they organized the Vinitaly India Roadshow, bringing 30 Italian wineries to events in New Delhi and Goa. These included business-to-business tastings, training sessions for hospitality professionals, meetings with importers, and an official dinner at the Italian Embassy in New Delhi. Local operators were also invited to attend Vinitaly in Verona this coming April.

The future of European wine exports to India depends heavily on regulatory developments. The sector is awaiting the outcome of a summit scheduled for January 27, where the European Union and India will discuss a potential free trade agreement. Such an agreement could reduce tariffs and technical barriers that currently limit market access.

Despite strong growth prospects, experts caution that several structural challenges remain. High taxes make imported wines expensive for Indian consumers. Regulatory complexity—stemming from state-level rules—adds another layer of difficulty for foreign producers. There is also a need for investment in education and branding to help establish a stronger wine culture among Indian consumers.

International brands are not only seeking direct sales but also aiming to position India as an efficient re-export hub for other South Asian markets. The hope is that improved trade conditions will accelerate this process.

Industry observers expect that if negotiations between the EU and India are successful, European wines could gain a much larger share of the Indian market in coming years. For now, Italy’s proactive approach serves as a model for other exporters looking to tap into one of Asia’s fastest-growing wine markets.