India-UK Trade Pact Shakes Up Whisky Market

The India-UK free trade agreement, recently announced, introduces duty concessions on Scotch imports that are expected to significantly benefit Indian premium whisky distillers. Lower customs duties on bulk Scotch, a crucial component for Indian Made Foreign Liquor companies, are anticipated to reduce costs and boost affordability in the Indian market.

Under this agreement, India will cut duties on UK whisky and gin from 150% to 75%, gradually dropping to 40% over ten years. Local players like Radico Khaitan and Allied Blenders & Distillers view this as an opportunity to offer Indian consumers enhanced access to high-quality spirits, while also slashing importation costs.

However, industry insiders like Amrut Distilleries MD Rakshit N Jagdale voice concerns about the steep duty reductions, fearing potential harm to the domestic sector. The benefits for import volumes must be weighed against the risk of overshadowing domestic growth and manufacturing self-reliance.

(With inputs from agencies.)