July 26, 2004Economy

India’s wine export story

Je suis de Nasik

This is an archived blog post from The Acorn.

Australia, South Africa and California are giving the traditional wine-growing regions of Europe (read France) a run for their money in international export markets. The European industry is safeguarding its intellectual property by ensuring that only wine from. say the Bordeaux region in France can be sold under that name. That does not seem to be stopping the wine-industry insurgents from producing and selling great wine.

A bunch of Indians from Maharashtra state have entered the fray and are making inroads into the European markets, although the French may deride the Swedish, the Dutch and the English for having a less sophisticated taste in wine. And in spite of tax rates higher than 23%, India’s domestic market is growing at 35% a year. As Indian governments are usually prudish, and the loony Left is bound to see wine as a rich man’s indulgence, it is not likely that Indians will find it cheap uncorkings any time soon. The irony of the entire story is that while France props up its domestic industries with all kinds of incentives, the Indian government does a lot to keep its own industry down.

Related Links: Maharashtra’s wine list, Centre for Civil Society’s study (pdf) on Maharashtra’s wine industry, and the state government’s grapes industry development policy



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