Champagne raises a toast to growth in India, duty cuts to add to the fizz

Subscribe to enjoy similar stories.India is emerging as a key growth market for champagne as the country's appetite for premium spirits grows. And, if the duty cuts planned under the proposed trade deal with the European Union (EU) kick in, the spirit would get more affordable and usher in new growth in a hugely underpenetrated market.Senior representatives of the Comité Champagne, which represents growers and manufacturing houses in France’s Champagne region, said India’s champagne market has climbed back to pre-pandemic levels, with shipments at about 60,000 bottles in 2025, close to a peak of around 65,000 bottles recorded in 2016.

This follows a steep decline in 2020, when pandemic restrictions halted shipments.The next leg of growth in India will depend on pricing, co-presidents David Chatillon and Maxime Toubart, and director general Charles Goemaere, told Mint.Under the proposed India-EU free trade agreement, duties on champagne are set to fall from 150% to 20% over seven years. If the benefits are passed on, the first round of cuts—which could halve the duty—is expected to lower prices by 20-30% in the first year, Chatillon said.

The trade deal is likely to be implemented next year.

“The product is currently overpriced in India compared to global markets. We expect it to align more closely,” said Chatillon, adding that the benefit would eventually depend on whether intermediaries pass it on.

Importers, distributors and hotels determine final prices, making pass-through uncertain. Industry executives said even a partial reduction in prices could expand access.The country's fundamentals of demand for the spirit remain strong.