New Delhi, June 18, 2026: The Confederation of Indian Alcoholic Beverage Companies (CIABC) has welcomed the India-UK Comprehensive Economic and Trade Agreement (CETA), set to come into force from 15 July 2026, while urging State Governments to remove excise concessions currently favouring Bottled-in-Origin (BIO) imported spirits over comparable Indian-made products. The industry body warns that once customs duty reductions under CETA take effect, existing State-level concessions to BIO products could create a “double advantage” for imported spirits over domestic brands.
CIABC said it appreciates that the tariff reduction on imported spirits under CETA will be phased over 10 years, giving the domestic industry time to adjust, and noted that lower import duty on Scotch whisky will also benefit Indian producers who use Scotch as an input for bottled-in-India products. However, the body flagged that several states — including Delhi, Haryana, Maharashtra, Madhya Pradesh, Odisha, Assam and Kerala — currently extend lower duties, lower brand registration fees, lower VAT or sales tax, and more flexible market access to BIO products compared to Indian-Made Foreign Liquor (IMFL).
The industry body cited specific state-level data to illustrate the disparity. In Haryana, IMFL is subjected to up to 30 times higher brand registration fees and 4 times higher VAT compared to BIO products, with the lower VAT on BIO estimated to cause a potential annual revenue loss of ₹200-250 crore for the state. In Assam, comparable Indian premium and luxury categories face 3 to 5.2 times higher local excise duty incidence than comparable BIO products, with CETA-linked customs duty cuts expected to reduce BIO prices by a further 9-15 per cent.
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In Odisha, comparative cost data indicates that every case shifting from IMFL to BIO could reduce state revenue by approximately ₹4,500 per case, while customs duty reduction may lower BIO prices by 13-15 per cent. In Kerala, IMFL spirits face a 251 per cent sales tax and 20 per cent retail margin, compared to 115 per cent sales tax and just 6 per cent retail margin applicable to BIO products.
Anant S. Iyer, Director General, CIABC, said: “CIABC believes that State Governments should now review and withdraw preferential treatment extended to BIO products wherever such treatment creates a structural disadvantage for Indian-made products. The objective is not to restrict consumer choice, but to ensure competitive neutrality between domestically produced IMFL, bottled-in-India products and BIO imports operating in the same premium segments.”
CIABC noted that within the premium and above category — which includes Indian single malts, craft gins, blended whiskies and Bottled-in-India Scotches — BIO products already account for 25 per cent of the segment and are growing, making policy neutrality in this space critical for the future of Indian premium brands. The body argued that any policy structure making imported products structurally more attractive than Indian-made products weakens the domestic value chain and runs contrary to the spirit of Make in India, Vocal for Local and Atmanirbhar Bharat.
CIABC has called on State Governments to move towards parity-based excise design specifically within the premium and above segments, where Indian brands are increasingly gaining recognition both domestically and globally. The industry body said it remains committed to working with the Central and State Governments to develop a balanced, revenue-positive and investment-led policy framework for the alcoholic beverage sector.
With CETA implementation just weeks away, the coming months are likely to see increased lobbying from domestic spirits makers for State excise reforms, even as several states continue to weigh the revenue trade-offs between BIO concessions and protecting their growing domestic premium liquor industries.
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