European Drinks Lobby Seeks India Tax Waiver On Packaging

A coalition of leading European beverage companies has approached the Indian government to consider suspending import duties on packaging materials. The move reflects growing concerns that domestic manufacturers of cans and bottles are struggling to operate at full capacity due to supply chain disruptions linked to the Iran conflict.

Reason For The Request

The Federation of European Businesses in India highlighted that shortages of glass bottles and aluminum cans could affect beverage availability in the Indian market. By waiving the 10% import duty, companies would be able to source packaging internationally, ensuring uninterrupted supply during peak demand seasons.

Impact On Indian Market

If approved, the waiver could stabilize beverage production and prevent price hikes for consumers. However, local manufacturers may raise concerns about increased competition from cheaper imports, potentially impacting domestic industry margins.

Strategic Context

The request coincides with ongoing India-EU trade discussions, where both sides are seeking deeper cooperation. Analysts suggest that the waiver could be seen as part of broader efforts to strengthen supply chain resilience and align trade policies.

Key Highlights

•⁠  ⁠European drinks lobby seeks India import tax waiver on cans and bottles

•⁠  ⁠Members include Pernod Ricard, AB InBev, Heineken, and Carlsberg

•⁠  ⁠Shortages linked to Iran war disrupting supply chains

•⁠  ⁠Waiver could stabilize beverage supply and consumer prices

•⁠  ⁠Domestic manufacturers may face competitive pressure from imports