NEW DEHLI:  India remains a tough market for premium New Zealand wines.

New Zealand labels are considered expensive compared to those from Chile, Italy, Australia and France, which dominate India’s imported wine market. 

The average Indian wine consumer is still relatively inexperienced and has had little exposure to New Zealand wines, so there is little demand for them at present. 

The amount of import and excise duties levied is also making it difficult to break into this market with the government and local authorities increasing taxes on imported alcohol – in some states as much as 400 percent – pushing consumer prices beyond the average middle-class household’s budget for such discretionary items.  This is despite the country’s growing economy and increasing disposable incomes. 

There are also very few places for the consumer to buy good quality imported wine at accessible prices. 

Even five star hotels, which do by quality wine, charge a premium although they are imported duty free.

In contrast to media reports, it is believed that the quality import wine segment in India is stagnating despite the increase in wine consumption.

The domestic wine market, protected from the high levies, is reaping the benefit of increased consumption. 

There has also been a significant shift to importing cheaper wines, aided by the recent change in duty to an ad valorem basis.  Previously it was a fixed amount per case, which favoured higher priced wines.

Around 15 New Zealand wine labels are exported to India.  Volumes are not high and importers are not keen to expand their portfolios at present due to challenging market conditions. 

However, of the few quality wine importers that operate in India, the majority have taken on new New Zealand labels in the past 12 months.  

Contact: For further information on the wine sector in India, please contact Paul Vaughan, trade commissioner, NZTE India.  Email:  paul.vaughan@nzte.govt.nz

http://www.nzte.govt.nz/section/14485.aspx#delhi