India and the UK have signed a Free Trade Agreement (FTA) that will gradually reduce import duties on UK-made whisky and gin. The current import tax of 150% will drop to 75% immediately, and further down to 40% in 10 years.
This may sound like good news for fans of imported brands like Johnnie Walker and Glenfiddich. However, the actual price drop for consumers in India will be quite small—only about ₹100 to ₹300 per bottle. That’s because alcohol taxes are largely controlled by individual states in India, and those taxes remain high.
Vinod Giri from the Brewers Association of India explained that most of the savings from lower import duties may not be passed on to customers. Instead, liquor companies might keep the extra profit, especially since the price difference between cheap and premium whiskies is already very wide.
The reduced taxes will apply to both bottled-in-origin (direct imports) and bulk imports (used for bottling or blending in India). International brands welcomed the deal, saying it will help bring more high-end liquor to Indian consumers and promote “premiumisation”—a shift toward better-quality, more expensive drinks.
Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), said the deal will benefit consumers by making premium imported alcohol more accessible in India, which is already the world’s largest whisky market by volume.
Currently, imported spirits make up just 2.6% of India’s alcohol market, with Scotch whisky being the most popular import.
However, not everyone is cheering. Anant Iyer from CIABC (an association of Indian-made foreign liquor producers) warned that cheap Scotch imports could hurt the growth of Indian premium brands if the government doesn’t monitor pricing and trade routes carefully.
Jean-Etienne Gourgues, CEO of Chivas Brothers, called the trade deal a “game changer” that gives hope to the global spirits industry, especially during tough times.
