Indian Wines

INDIAN WINE INDUSTRY

Multiple aspects of Indian Wine Industry Wine industry is in a nascent stage in India. Estimates suggest an enormous growth potential of this sector. Both the indigenous wine making industry and the wine market of India require equal attention for proper growth and expansion. We have definitely reached an “inflection point” for this industry and therefore an overhaul in all dimensions and forms seems inevitable. The growth in import, export and consumption suggests that immediate steps are to be taken at national level to help this sector grow at a faster rate. Let us outline the primary factors acting as constrain for this industry in India. At the very outset we have four major issues to note: (a) legal aspect, (b) global aspect, (c) social aspect and (d) promotional aspect. Though as a part of WTO commitments Indian government has taken some positive steps to help the industry move smoothly but in order to secure a massive growth in this sector planned and phased strategies should be adopted. Let us raise each such issue in the discussion with all possible solutions.

Legal Aspect - The legal issues involve stringent laws and a plethora of duties and fees such as excise duty, license fee, sales tax, brand/label registration fee, import/export fee, vend fee, gallon age fee, turnover tax etc. The alcoholic beverages sector being a State subject States/UTs frame their own policies and taxation regime. Rates of such duties/fees vary widely from State to State. Though anyone can import wines into a Customs Bonded Warehouse as no license is required for the same; thereafter, goods can move either duty free (against a license from hotels) or duty paid to license holders after paying the relevant customs duties. Wine is still clubbed with spirits for licensing and taxation by all states and its production and marketing still subject to all the checks and controls of the „license-permit Raj‟ that constrain growth of a healthy domestic industry....