Archive · 7 Nov 2025
India-UK Free Trade Agreement to Reduce Scotch Whisky Duties, Boost Imports
Imagine India and the UK made a deal to be friends and trade more easily.
One thing they agreed on is making Scotch whisky, a special drink from Scotland, cheaper to buy in India.
Right now, India puts a big tax on imported drinks, but this new deal will slowly lower that tax.
This means more Scotch whisky can be sent to India, either in big containers to be bottled there or as ready-to-drink bottles.
The people who make Scotch whisky are happy because they think more Indians will buy their drink as it gets cheaper.
It’s also good for Indian drink makers who use imported whisky.
Even though other whiskies like Bourbon are also popular, Scotch has been around in India for a long time.
This deal is like a new start for them to sell more whisky.
India and the UK have signed a Free Trade Agreement (FTA) set to reduce import duties on Scotch whisky.
The duty on UK whisky and gin will decrease from 150% to 75% initially, and further to 40% over 10 years.
The FTA is expected to increase imports of bulk Scotch whisky for bottling and incorporation into India-Made Foreign Liquor (IMFL).
India is the world's largest export market for Scotch whisky by volume.
The agreement aims to foster industry collaboration and make Scotch whisky more competitive against other spirits in the growing Indian market.
- Who
- Scotch Whisky Association Chief Executive Mark Kent CMG, Indian and UK governments
- What
- A Free Trade Agreement (FTA) that will reduce import duties on Scotch whisky and gin into India.
- When
- The FTA is awaiting ratification; duty reductions are phased over 10 years.
- Where
- India and the UK
- Why
- To lower prices, increase imports of bulk and bottled Scotch whisky, boost industry collaboration, and cater to the growing Indian spirits market.
Scotch Whisky Association
Indian Market Dynamics
Impact of Duty Reductions
Scotch Whisky Association
The FTA will significantly reduce duties on Scotch whisky, making it cheaper and more competitive for Indian manufacturers and consumers, heralding a new era of partnership.
Indian Market Dynamics
While duties are reducing, Scotch whisky still faces competition from Bourbon and Japanese whisky, and holds a small percentage of the premium Indian spirits market.
Market Growth and Competition
Scotch Whisky Association
The growing Indian market presents an optimistic outlook for Scotch whisky, with increasing volumes and premiumization trends favoring imports.
Indian Market Dynamics
The increasing popularity of other spirits like Bourbon and Japanese whisky indicates a diversifying consumer preference, offering greater choice but also potential competition.
- FTA Parties
- India and UK
- Scotch Whisky Export Volume to India (2024)
- 192 million bottles
- Initial Duty Reduction on UK Whisky and Gin
- From 150% to 75%
- Future Duty Reduction (Year 10)
- To 40%
- Percentage of Bulk Whisky in Scotland's India Exports
- 79%
- Scotch Whisky Market Share in India (Premium End)
- 2.5-3%