The Indian wine is experiencing a remarkable transformation, with the market projected to grow from USD 229 million in 2024 to USD 892 million by 2033, representing a robust 16.3% compound annual growth rate. This explosive growth reflects changing consumer preferences, rising disposable incomes, and an evolving appreciation for both domestic and international wines. As Indian consumers become increasingly sophisticated in their wine choices, the age-old debate between local and imported wines has taken on new dimensions. While imported wines have traditionally held the perception of superior quality, Indian wines are rapidly closing the gap, offering compelling value propositions that challenge conventional wisdom. Understanding the nuances of this market shift is crucial for wine enthusiasts between premium imported bottles and increasingly refined domestic alternatives in today’s dynamic wine ecosystem.
The Current Market
India’s wine market is witnessing unprecedented growth, with consumption patterns shifting dramatically across urban centers. The market was valued at USD 270.56 million in FY2024 and is expected to surge above USD 977.02 million by FY2032. Imported wines currently account for more than 25% of total wine consumption by volume, with India importing wine worth US$ 432.8 million in 2023, representing a staggering 1,177.6% year-over-year growth. Spain leads as the primary supplier, followed by France, Australia, Italy, and Chile, collectively comprising 98% of India’s wine imports.
Quality Perception: The Imported Advantage
Consumer perception studies reveal that wine drinkers consider imported wines superior to Indian varieties across multiple parameters. This preference stems from established wine-making traditions, brand recognition, and the psychological association of imported products with premium quality. Imported wines benefit from centuries of wine-making expertise, diverse terroir expressions, and sophisticated marketing that positions them as luxury experiences.
However, this perception gap is narrowing as Indian wineries adopt international best practices and invest in quality improvements. Some Indian wines have successfully matched the price-and-quality status of imported wines, with reserve Indian wines now priced between ₹800 to ₹1,700, compared to entry-level imported wines starting around ₹1,000.
Value Proposition: Indian Wines Fight Back
Indian Wine vs Imported (Image via Getty)Indian wines are increasingly perceived as offering “better value for money” by cost-conscious consumers who find imported wines expensive. Leading Indian wineries like Sula, Grover Zampa, Fratelli, and newer entrants like KRSMA and Alpine Wineries are producing wines that compete directly with international standards. The Cabernet Shiraz by Sula (₹950), Fratelli Sette (₹2,000), and York Winery’s Reserve Blend (₹1,400-₹1,500) exemplify this quality evolution.
The quality improvement is particularly evident among new wineries from Karnataka and Maharashtra, which follow international standards in grape quality, winemaking, and packaging. This development challenges the traditional superiority of imported wines while offering significant cost advantages.
The Price Reality Check
Import duties of 150% on foreign wines create substantial price premiums, making imported wines significantly more expensive than their domestic counterparts. This tax structure inadvertently protects Indian wines while making imported options accessible primarily to affluent consumers. Despite these barriers, the growing middle-class population and increasing disposable incomes are driving demand for both categories.
Modern Indian consumers, particularly millennials and Gen Z, are becoming more discerning and willing to experiment with different varietals and boutique labels. Cities like Mumbai, Bangalore, Goa, and Delhi are witnessing increased consumption of premium wines, with consumers showing curiosity for unique offerings like India’s first imported orange wine from Italian winery Radikon.
The Verdict: Context Matters
The choice between Indian and imported wines ultimately depends on individual preferences, budget considerations, and consumption occasions. For everyday drinking and value-conscious purchases, quality Indian wines offer excellent options. For special occasions or specific varietal experiences, imported wines may justify their premium pricing.
Both segments serve important roles in India’s evolving wine culture, with domestic wines providing accessibility and imported wines offering diversity and prestige.
