Daily News - Friday, 10 April 2026
European Alcohol Markets Seek India Tariff Waiver Amid Packaging Shortages (Reuters)
European alcoholic drinks companies including Pernod Ricard, Anheuser‑Busch InBev, Heineken, and Carlsberg have urged India to waive the 10% import duty on glass bottles and aluminum cans, citing shortages caused by the Iran war and supply disruptions in the Strait of Hormuz. The Federation of European Business in India wrote to the government on April 2, 2026, warning that local manufacturers cannot meet demand, pushing costs up by 15% for raw materials like cartons and adhesives in India’s USD $65 billion (INR ₹5.4 lakh crore) alcohol market. Price hikes are difficult to pass on to consumers because retail changes require approval in two‑thirds of India’s 28 states, leaving companies squeezed. The Brewers Association of India, representing beer makers, also sought duty exemptions, noting the industry contributes USD $5.52 billion (INR ₹46,000 crore) annually in taxes and risks shortages from May. Rising international prices and a weaker rupee have further inflated import costs, while LNG imports critical for glass factoriesm, fell to their lowest since January 2025, worsening supply constraints. India’s Commerce and Finance Ministries have yet to respond, but analysts warn that without relief, shortages of cans and bottles could disrupt one of the world’s fastest-growing alcohol markets, projected to expand at 8% annually until 2033.
EU-India Trade Deal Reduces Wine Tariffs, India’s Wine Market Set to Grow 14% by 2029 (Financial Times)
India’s wine industry is set for a major shake-up under the EU-India trade deal signed in January 2026, which will cut tariffs on European wines from 150% to 75%, and eventually as low as 20%. The move has already triggered strong interest, with wine expert Sonal Holland reporting over 100 emails from European producers in a single week seeking entry into India’s USD $450 million (INR ₹3,700 crore) wine market, which is projected to grow 14% by 2029. While global wine sales stagnated at USD $200 billion (INR ₹16.6 lakh crore) in 2024 and are forecast to decline 3% by 2029, India’s consumption has grown 7% annually over the past five years, though wine remains just 1% of total alcohol value, dominated by whisky and spirits. Domestic producers such as Sula Vineyards, Fratelli, and Grover Zampa face intensified competition, with Sula reporting a 68% plunge in quarterly net profit due to oversupply in Karnataka. Yet executives like Grover COO Sumit Jaiswal see opportunity, arguing that European investment and marketing could expand India’s wine culture and increase the pie. The Wine Growers Association of India is also working with partners like Australia to set up a wine laboratory in Nashik, aiming to raise quality standards as tariffs fall and imports rise.
India Inc Resumes Exports as Iran Ceasefire Eases Middle East Trade (Economic Times)
Indian companies are rapidly resuming exports after the two week Iran ceasefire, restoring factory utilisation and supply chains across the Middle East, which had seen business drop 40-50% last month due to the conflict. Pharma firms report rising demand as countries replenish medicine inventories, while packaged food makers like AWL Agri Business expect shipments to Dubai’s Jebel Ali port to return to 4,000-5,000 tonnes per month, with distributors absorbing higher freight costs. Consumer goods manufacturers such as Havells India (40% of export revenue from the region) and Blue Star are preparing for reconstruction‑linked demand in cables, wires, and air‑conditioners. Local plants of Parle Products and Dabur India are scaling back up to full capacity, with Parle’s Bahrain unit rising from 70-80% to 100% utilisation. Freight and insurance costs, which had spiked 40-50%, are beginning to soften as the Strait of Hormuz reopens, though container rates remain elevated, with Drewry’s World Container Index up 21.6% to USD $2,309 (INR ₹192,000) per 40-foot container. The Federation of Indian Export Organisations (FIEO) cautions that while the ceasefire offers relief, its temporary nature means exporters must remain vigilant.
India Targets 25% Cut in Steel Emissions by 2035 While Doubling Capacity (Reuters)
India has drafted a new National Steel Policy 2025 that targets a 25% cut in carbon emissions from steel mills by 2035-36, while simultaneously aiming to double crude steel capacity to 400 million metric tons from the current 168 million tons. Steelmakers currently emit 2.65 tons of CO₂ per ton of finished steel, about 32% higher than the global average of 2 tons, and account for 10-12% of India’s total emissions, prompting urgent decarbonisation. The policy proposes gas-based steelmaking, greater use of scrap, and incentives for continuous emission reduction, with collaboration between the Steel Ministry and Oil Ministry to secure overseas gas supplies. India has also been hit by the EU’s carbon border tariff (effective January 2026), which imposes fees on high-carbon imports like steel and cement, forcing New Delhi to diversify export markets. Expanding capacity will require ₹17 trillion (USD $183.4 billion) in capital investment and could create over 3 million jobs, adding to the sector’s current 2.8 million workforce and its 2.5% share of India’s USD $4 trillion economy. The plan also seeks to reduce dependence on imported coking coal from 90% to 80% by 2035-36, with partnerships identified across Australia, Russia, Japan, Germany, and the U.S.
