Wine fantasy

It’s 2025. Narendra Modi has just been re-elected as prime minister for a record third time, and the Bharatiya Janata Party seems unstoppable. However, perhaps on recognising that fermented beverages like wine and beer represent the gentler and more civilised face of society, custom duties on imported wines and beer have been slashed from 150 per cent to 100 per cent this year, with a stated policy of progressively bringing this down to 50 per cent by 2026.

This is accompanied by a policy aimed at bringing all alcoholic beverages out of state control and to levy a standard 28 per cent GST on spirits and 12 per cent on wines and beer.  It is expected that licensing for production of wines and beer will soon become a central subject and be liberalised across the country.

The market for wines explodes. Sales of imported wines triple to 2 million cases, and it is projected that this will reach 8 million cases by 2028. Ten new joint ventures to set up vineyards and wineries in India announce a total planned investment of Rs 2,500 crore — many units plan to combine wine production and marketing with wine tourism, and some say that investments in this sector could touch Rs 10,000 crore in 10 years.

The much-needed investments reinvigorate the Indian wine industry, and a major beneficiary is grape production: vineyards are declared a “plantation crop”, in line with tea and coffee, with attendant exemptions from antiquated land control laws, and there are projections that some 50,000 acres of wine-grape vineyards will come up over the next few years to cater to expected demand.

Many more states come out with a wine-friendly policy that makes it easier (and cheaper) to both produce as well as sell wine: Tamil Nadu, Telangana, Odisha, Andhra Pradesh, Uttarakhand, Himachal Pradesh, and all seven states in the Northeast follow the example set by Maharashtra and Karnataka.

The price of wines in India, both in retail shops, bars and restaurants, plummets by 30 per cent to 50 per cent, which propels sales and consumption: a “virtuous spiral” of higher volumes due to lower prices. Importers and wine producers actually start making some money (although still not very much), but expect to make more in the future as volumes and margins improve.

The biggest beneficiary is the wine consumer: a wider choice of better wines at lower prices than ever before. With wine prices in India matching those overseas, and the silly, outdated quantitative restrictions on individual wine purchase and storage having become history, people start keeping their wine cellars in India rather than London, Paris or Chicago, with the ability to delve into the stash when required. Dining with fine wines takes off as stand-alone restaurants allow you to bring in your own wines by charging a corkage (as is the norm in most cities overseas). 

Another beneficiary is the quality of Indian wines. With all the investment in vineyards, the quality of grapes improves dramatically — and since 80 per cent of wine quality is determined by good grapes, this of course results in better wines. Two, as more wineries are able to invest in better production techniques and equipment, as well as oak casks for maturing their wines, the proportion of “reserve” wines grows. Indian wines start becoming noticed in international wine competitions and winning prizes.

What a fantasy — would that even a fraction of this vision came true.

Wines I’ve been drinking: The Wine Connoisseurs is a small group of consumers that meets monthly in different locations in Bengaluru to taste great wines, with food selected to complement the wines (rather than the other way round). Last evening at Olive Beach, the Produttori del Barbaresco Barbaresco Muncagota Riserva 2013 (100% Nebbiolo, $55, average rating 92 points) was paired with braised lamb shoulder. The wine itself was stupendous, with complex aromas of anise, earth, spice, and balsam and a full-bodied taste with fine firm tannins and a lingering finish. 

Alok Chandra is a Bengaluru-based wine consultant