Mumbai, May 8: Scotch whisky and gin lovers in India may soon enjoy lower prices as the India–UK Free Trade Agreement (FTA) paves the way for a steep reduction in import duties. The current 150% duty on Scotch will be halved to 75% initially, with a gradual reduction to 40% over the next decade. The deal also aims to expand consumer access to a broader range of Scotch labels, including boutique brands previously sidelined by high tariffs.

This tariff cut is expected to boost affordability and variety in India’s premium whisky market. Following the first phase of the reduction, a bottle of Scotch that currently costs around INR 5,000 could drop to between INR 3,500 and INR 4,000, subject to state taxes and distributor pricing. As tariffs continue to fall, prices are projected to decline further, potentially strengthening demand and benefiting the Scotch whisky industry. India-UK Free Trade Pact: PM Narendra Modi, Counterpart Keir Starmer Seal FTA and Double Contribution Convention Agreements To Boost Trade.

Domestic Players Unhappy As Scotch Whisky Set To Get Cheaper in India

However, domestic alcoholic beverage producers are expressing concern, according to the news agency PTI. The Confederation of Indian Alcoholic Beverage Companies (CIABC) warned that similar concessions in future FTAS could harm India's local spirits and wine sectors, particularly with the EU, US, or Australia. “We fear that if the same template of duty reduction is followed for other trade deals, the Indian Alcobev industry could get adversely impacted,” said Anant S Iyer, Director General of CIABC. Sanjay Dutt Takes the Alcobev Industry by Storm; Actor’s Scotch Whisky Brand The Glenwalk Sells 3 Lakh Bottles in Just 45 Days!

Despite these concerns, Indian officials maintain that the impact will be limited, pointing out that Scotch currently holds just 2.5% of the country’s whisky market, which remains dominated by country-made liquor and India-made foreign liquor. Notably, India has emerged as the largest market for Scotch whisky exports by volume, importing 192 million bottles in 2024, up from 167 million the previous year.

(The above story first appeared on LatestLY on May 08, 2025 12:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).