India and the European Union (EU) have finally signed a long-awaited Free Trade Agreement (FTA) after almost 18 years of negotiations a pact being called the “mother of all deals” that is set to reshape trade in goods, services and tariffs between the two blocs. One of the most visible benefits for Indian consumers will be lower prices on a wide range of imported foods and beverages from Europe, as heavy duties on many items are significantly cut or eliminated.
Olive oil and vegetable oils, zero tariffs soon
One of the biggest tariff wins for consumers comes in the form of olive oil, margarine and other European vegetable oils, which traditionally attracted import duties of up to 45%. Under the trade deal, these tariffs will be phased out and eventually reduced to 0 percent, making premium oils considerably more affordable for Indian households and restaurants.
Processed foods: pasta, chocolate, biscuits get cheaper
A large category of processed food items will also see duty elimination. This includes pasta, breads, pastries, biscuits, chocolate, pastries and even pet food. These products currently carry tariffs as high as 50 percent, but will become tariff-free under the new FTA, paving the way for cheaper European staples on Indian supermarket shelves.
Fruit juices and non-alcoholic beverages: duty-free access
Under the agreement, fruit juices and select non-alcoholic beverages, which faced tariffs of up to 55 percent, will now enter India without import duty. This means bottled European juices and premium soft drinks will face lower retail prices once the deal is implemented and fully in effect.
Fresh fruits and meat products: notable reductions
The FTA also brings price relief on select fresh fruits such as kiwis and pears, with tariffs dropping from 33 percent to 10 percent within quota limits. Meanwhile, processed meat products like sausages will see tariffs halve from 110 percent to 50 percent, and sheep meat will become duty-free, offering cheaper options in these segments too.
Alcoholic beverages: wine, beer, spirits become more affordable
Alcohol imports from the EU will benefit significantly as well. Import duties on European wines previously as high as 150 percent will be slashed, eventually going as low as around 20 percent for premium bottles and about 30 percent for mid-range options. Beer tariffs will be cut from 110 percent to 50 percent, and spirits (such as whisky or gin) will fall from around 150 percent to about 40 percent, making popular European brands cheaper for Indian drinkers.
Broader consumer impact and choice expansion
These tariff cuts are expected to benefit not just individual shoppers but also restaurants, hotels and speciality food businesses that source premium European ingredients. Over time, this could increase variety, availability and value across the Indian food and beverage market while making products previously seen as niche more accessible.
The India-EU Trade Deal is now awaiting procedural ratification and, if all goes according to plan, many of these tariff cuts will start taking effect by 2027, bringing European foods and drinks to Indian consumers at relatively lower prices compared with the past.