India’s imports of bulk Scotch whisky from the United Kingdom surged nearly 1,000% in August 2026, the first full month after the India-UK trade agreement came into effect, highlighting significant changes in whisky trade flows and an ongoing dispute over the reduced import duty on bulk shipments.
According to trade data reported by Moneycontrol, imports of Scotch whisky in containers exceeding two litres reached $12.39 million in August, almost eleven times the value recorded in August 2025. In contrast, imports in containers of up to two litres declined 29.8% year-on-year to $3.08 million, compared with $4.39 million during the same month last year.
The contrasting trends have drawn attention to the customs classification of bulk Scotch under the India-UK trade agreement, which reduced import duties on qualifying Scotch whisky from 150% to 75%, effective July 15, 2026. However, a dispute emerged over whether the lower tariff also applies to bulk whisky imported for blending and bottling in India or is restricted to finished bottled products.
Bulk Scotch is an important raw material for Indian liquor manufacturers, particularly companies producing Indian-made foreign liquor (IMFL). A higher import duty could increase sourcing costs and affect the economics of domestic blending and bottling operations.
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The dispute involves major international and domestic players, including Diageo, Pernod Ricard, Radico Khaitan and Allied Blenders and Distillers.
The Scotch Whisky Association has highlighted India’s importance as a major export market, with Scotch exports valued at $335 million in 2024. The trade agreement is projected to generate an additional $1.34 billion in Scotch exports over five years.
While the Commerce Ministry’s assurance has eased some industry concerns, the final impact will depend on customs implementation and clarity over tariff eligibility. Detailed September 2026 commodity-level import figures were not yet available as of November 3.
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