Scotch whisky is set to become more affordable in India after the signing of the India-UK Comprehensive Economic and Trade Agreement (CETA) today. Under the deal, import duties on Scotch will drop from 150 per cent to 75 per cent immediately, and further down to 40 per cent over the next ten years once both countries ratify the agreement domestically.
In a major win for UK distillers, the landmark agreement also avoids imposing a Minimum Import Price (MIP) on Scotch—something India’s domestic industry had pushed for. The move is expected to give UK whisky producers greater access to the world’s largest whisky market by volume. In FY 2024–25, whisky was the UK’s fifth-largest export to India, valued at approximately USD 260 million.
The Confederation of Indian Alcoholic Beverage Companies (CIABC) welcomed the lower tariffs but voiced concerns over potential dumping. “While the duty cut will help blended Indian whiskies become more cost-effective, the government must ensure imported spirits are not dumped at low prices or routed through third countries,” said Anant S Iyer, Director-General, Confederation of Indian Alcoholic Beverage Companies.
Natwar Aggarwal, CFO of Piccadily Agro Industries Limited, also expressed support for the agreement. “We support the government’s decision on FTA with the UK, which has been taken in the larger interest and for the benefit of the country. We also hope that the state governments will follow the path laid down by the central government and give equal opportunity to Indian brands,” he said.
On the flip side, the agreement is also a boost for Indian craft alco-bev producers. Traditional Indian drinks such as Goa’s feni, Nashik’s artisanal wines, and Kerala’s toddy are set to gain recognition in the UK. These beverages will enjoy both Geographical Indication (GI) protection and easier access to a developed export market.
Currently, India exports USD 370.5 million worth of alcoholic beverages annually. With this new deal, the government aims to grow exports to USD 1 billion by 2030. In April, APEDA (Agricultural and Processed Food Products Export Development Authority) said Indian alco-bev products—especially gin, wine, and beer—have strong global potential.
