Archive · 2 Jun 2025
Indian Alcohol Industry Concerns Over UK FTA Terms
India and the UK made a trade deal, but India's alcohol business isn't happy.
They worry that cheaper alcohol from the UK, like whisky and gin, will flood the market because tariffs (taxes) are going down.
Taxes will drop in two steps, from 150% to 75% and then to 40%.
The alcohol industry wants a higher tax to protect local businesses.
They also want the UK to recognize 'Indian whisky' as its own thing, not just 'whisky.'
The industry is worried similar deals with other countries could also hurt their sales because those countries have cheaper prices and state support.
The Indian alcoholic beverage industry expressed disappointment over the FTA terms with the UK.
Tariffs on whisky and gin will be reduced from 150% to 75%, eventually reaching 40% in the tenth year.
CIABC raised concerns about the tariff structure and the lack of a minimum import price.
CIABC seeks removal of restrictive definitions on whisky to grant Indian whisky access.
Similar FTAs could harm the Indian spirits and wine sectors.
- Who
- The Confederation of Indian Alcoholic Beverage Companies (CIABC) and the Indian alcoholic beverage industry.
- What
- The Indian alcoholic beverage industry's concern over the India-UK Free Trade Agreement terms.
- When
- The FTA was recently sealed.
- Where
- India and the United Kingdom.
- Why
- The Indian alcoholic beverage industry is disappointed due to tariff reductions.
Indian Alcohol Industry
UK Alcohol Industry
Tariffs
Indian Alcohol Industry
Concerned about reduced tariffs potentially flooding the market with cheaper Scotch brands.
UK Alcohol Industry
Benefits from reduced tariffs, making their products more competitive in India.
Minimum Import Price
Indian Alcohol Industry
Wants a minimum import price to prevent the influx of cheaper Scotch brands.
UK Alcohol Industry
Likely opposed to minimum import prices as they could limit market access for cheaper brands.
- Agreement
- India-UK Free Trade Agreement
- Affected Products
- Whisky and Gin
- Tariff Reduction
- 150% to 75% (then 40%)
- Key Organization
- CIABC
- Concern
- Minimum import price