The EU and India have agreed a landmark trade deal which will see the 150% tariffs on European produce, including beer, wine and spirits, cut by half and followed by a gradual reduction.

The deal means that tariffs will be cut to 20-30% on EU wine, 40% on spirits, and 50% on beer, with some estimates suggesting that European exports will double by 2032.

Ursula von der Leyen, president of the European Commission, said via X that the two parties were “making history today”.

She added: “We have concluded the mother of all deals.  We have created a free trade zone of two billion people, with both sides set to benefit.”

According to Spiritseurope, the value of EU spirits exports to India increased sixfold over the past decade, and India is the second-largest spirits market globally by volume, after China.

“This agreement is a real game changer for our sector,” said Spiritseurope director general Mark Titterington. “Cutting tariffs from 150% to 40% will unlock long-term growth, create new jobs across the value chain, and give Indian consumers greater choice through a complementary, rather than competing, offering.

“The deal benefits both sides: a stronger EU presence will support market diversification, boost revenues, attract investment and generate downstream employment in India, without displacing domestic production.”

From a European perspective, the biggest winners may be the traditional winemaking nations whose volumes have waned in recent years. For context, the EU currently exports more wine to Iceland than India, equating to around 0.5%. India, with its burgeoning population, provides a big opportunity to diversify wine consumption and potentially return volumes to healthier levels.

In spirits, Irish whiskey and cognac are two of the biggest profile categories likely to benefit from the new trade deal. With the US being the traditional market for both spirits categories, the timing is perfect, given the tough US tariffs by the Trump administration, causing turbulence.

This particular trade deal excludes the UK, and therefore, Scotch whisky will have to hope for a similar deal to be reached in the coming months.