New Delhi, Sep 6 (PTI) The domestic demographic structure and the strong prospects for India's long-term economic growth present plenty of room for Indian and Scotch whiskies to prosper in the world's biggest whisky market, an industry association said on Wednesday.

Scotch Whisky Association (SWA) also said that the proposed reduction in import duty by India under a free trade agreement between New Delhi and London would not only help boost exports of Scotch whiskey from the UK, but consumers here will also get more choice as smaller producers enter the market.

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India and the UK are negotiating a free trade agreement.

It will also benefit India-Made Foreign Liquor (IMFL) brands by reducing import costs.

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The association also said that imported Scotch whisky will pose "very little" direct competition to local Indian whisky because of its small size here.

A large portion of the export of Scotch whisky to India is in bulk, and the bottled versions are only 24 per cent of exports. Most Scotch whisky sold in India is bottled locally, SWA said in a statement.

India and the UK are continuing their negotiations to iron out differences on the proposed free trade agreement (FTA).

Following the G20 Trade and Investment Ministers Meeting (TIMM) at Jaipur, the progress of the negotiations was reviewed by Commerce and Industry Minister Piyush Goyal and UK's Secretary of State for Trade Kemi Badenoch on August 26.

As New Delhi gears to host the 18th G20 Heads of State and Government Summit, SWA and International Spirits and Wines Association of India (ISWAI) jointly look forward to a successful India-UK Free Trade Agreement (FTA).

Over substantial reduction in India's 150 per cent tariff on import of Scotch whisky, SWA CEO Mark Kent said it will pose very little direct competition to Indian whisky.

"Demographics and the strong prospects for India's long-term economic growth mean there is plenty of room for Indian and Scotch whiskies to prosper in the world's biggest whisky market. Only 24 per cent of exports to India are bottled in Scotland. Most Scotch whisky sold in India is bottled locally, while bulk Scotch whisky is an important ingredient in Indian whisky," he said.

As the IMFL and Scotch categories have grown, so has the investment in facilities in India and the jobs and growth that delivers, both in the tourism and hospitality industries, he added.

Scotch whisky is the world's most traded spirit, with worldwide consumption of 1.3 billion bottles.

However, it is less than half the volume of Indian whisky production.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)