Indian whisky manufacturers are facing increased competition as reduced import duties make Scotch whisky more affordable in the domestic market. The import duty on Scotch has been cut from 150% to 75% under the India-UK trade agreement, creating fresh pricing opportunities for importers, bottlers and whisky blenders while putting pressure on domestic distillers, particularly smaller premium and craft brands.
The impact is already visible in retail prices. Mysuru-based Huli Spirits launched its locally produced rice malt whisky in Karnataka at Rs 2,650 for a 750 ml bottle. In comparison, J&B Rare was reportedly available at Bengaluru retailer Tonique for Rs 1,375 in October, following a price reduction linked to local bottling. The imported Scotch was therefore significantly cheaper than the Indian-made premium product, highlighting the growing pricing challenge for domestic producers.
Industry representatives say the duty reduction could particularly affect manufacturers that rely on locally sourced grains and domestic distillation. Unlike companies importing bulk Scotch for bottling or blending in India, these producers may not benefit directly from lower import costs. Cheaper bulk Scotch can also provide established players with greater flexibility to price their blended whisky brands competitively.
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Diwali Whisky Gifting Guide 10 Indian Whisky Brands to Explore This Festive SeasonAccording to drinks research firm IWSR, the premium-and-above whisky segment, defined as bottles priced at Rs 2,899.01 or more for 750 ml, accounted for less than 1% of India’s whisky consumption by volume in 2025. This relatively small market makes pricing competition particularly challenging for emerging Indian premium whisky brands.
The industry is also monitoring customs-related concerns over the classification of bulk Scotch shipments under the new tariff framework. On November 2, Commerce Secretary Rajesh Agrawal assured manufacturers that the benefits of the reduced tariff would be protected and that commerce and revenue officials would work to resolve the issue.
Industry estimates suggest the duty reduction could lower retail prices by around 8-10%, depending on state taxes and company pricing strategies. As imported Scotch becomes more accessible, Indian whisky makers may need to strengthen brand positioning, distribution and consumer engagement to protect market share. The long-term impact will depend on how much of the tariff benefit reaches consumers and how domestic producers respond to the changing competitive landscape.
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