India's traditional alcoholic beverages, including Kerala's toddy and Goa's feni, are set to compete with international brands and find shelf space in Britain following the India-UK Free Trade Agreement (FTA) signed on Thursday.

The FTA is expected to remove tariffs on 99 per cent of Indian exports, making it easier for Indian products to enter the UK, according to Indian officials. With this, ethnic Indian alcoholic beverages will not only benefit from traditional Geographical Indication (GI) protection but also gain access to developed markets like the UK, where demand for natural and organic products is steadily growing.

"Indian craft drinks like feni from Goa, artisanal wines from Nashik, and toddy from Kerala will now enjoy Geographical Indication (GI) protection and shelf space in high-end UK retail and hospitality chains," an Indian official said. 

The FTA will not only help place traditional Indian craft beverages on the shelf space in the UK, along with Scotch Whisky and others, but also help explore niche channels such as hospitality, said a Commerce & Industry ministry official. They will also offer their unique taste, distinct flavour profile and heritage to the British tumblers.

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This marks a major boost for the government, which is actively promoting Indian alcoholic beverage exports to global markets. Although still a growing segment, the government expects exports to rise from the current $370.5 million to $1 billion by 2030.

Earlier in April, APEDA (Agricultural and Processed Food Products Export Development Authority) said Indian alcoholic beverages have huge potential in global markets and the country has a lot of good products, including gin, beer, wine, and rum, to offer to the world.

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India is currently ranked 40th in the world for alcoholic beverage exports, and the target is to be among the top 10 exporters in the world in the coming years. The country's alcoholic beverages exports stood at over ₹2,200 crore in 2023-24. The major destinations include the UAE, Singapore, the Netherlands, Tanzania, Angola, Kenya and Rwanda.

(With inputs from PTI)

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