Archive · 24 Jul 2025
India-UK FTA: Whisky and Gin Duties Set for a Steep Reduction
India and the UK made a deal to help each other trade goods.
For alcohol, this means that the cost of importing whisky and gin from the UK to India will go down over the next 10 years.
This should make it cheaper and easier to buy these drinks in India.
Some people are excited because they think this will make the market more exciting.
However, some people are worried that it might hurt the Indian alcohol companies.
India and the UK signed a free trade agreement (FTA) affecting the alco-bev market.
Import duties on Scotch whisky and gin from the UK will be halved immediately and further reduced over 10 years.
The FTA could accelerate premiumization and reshape consumer choices in India's whisky market.
Indian companies anticipate cost advantages and opportunities for collaboration.
Concerns have been raised about potential negative impacts on premium Indian brands.
- Who
- India and the UK; involving companies in the alco-bev industry.
- What
- A free trade agreement between India and the UK.
- When
- The agreement was signed recently, with duty reductions taking place immediately.
- Where
- Between India and the UK.
- Why
- To boost bilateral trade and reduce import duties.
Supporters of the FTA
Opponents of the FTA
Impact on Domestic Brands
Supporters of the FTA
Reduced import duties on Scotch whisky and gin will benefit consumers by increasing choice and potentially lowering prices.
Opponents of the FTA
Lower import duties on Scotch whisky and gin might harm the growth of premium Indian brands, leading to cheaper foreign imports.
- Duty reduction
- Import duties on whisky and gin will be halved immediately to 75% and gradually reduced to 40% over 10 years.
- Market
- India is one of the largest alco-bev markets.
- Import Share
- Imported spirits account for 2.6% of the Indian market.
- Scotch Share
- Scotch whisky accounts for 81% of imported spirits.
- IMFL Benefit
- 79% of imported Scotch comes in bulk form for Indian Made Foreign Liquor (IMFL) manufacturers.
- Estimated Trade Boost
- The FTA aims to boost bilateral trade by an estimated $34 billion annually, aiming for $120 billion by 2030.
