The recently finalized India–UK Free Trade Agreement (FTA) is set to bring substantial changes to the Scotch whisky market in India.
Under the agreement, the import duty on Scotch whisky, which currently stands at 150%, will be reduced to 75% initially and then gradually lowered to 40% over the next 10 years.
Scotch Whisky Prices Set to Drop
The tariff reduction is expected to make premium Scotch whisky more affordable for Indian consumers. A bottle that currently retails for around ₹5,000 may soon cost between ₹3,500 and ₹4,000 after the initial duty cut.
As the tariff continues to decline, prices could drop even further, depending on local taxes and distributor margins.
Current Scotch Whisky Prices in India
Here’s a look at the current prices of popular Scotch whisky brands in India:
| Brand | Price (Approx.) |
|---|---|
| Johnnie Walker Black Label | ₹4,800 – ₹5,200 |
| Chivas Regal 12-Year-Old | ₹4,500 – ₹5,000 |
| Glenfiddich 12-Year-Old | ₹5,500 – ₹6,000 |
| The Macallan Double Cask 12-Year | ₹7,500 – ₹8,200 |
| Ballantine’s Finest | ₹2,800 – ₹3,200 |
These prices are expected to decrease as the FTA takes effect, making Scotch whisky more accessible to a broader range of consumers.
Boost for UK Whisky Exports
The deal is projected to increase Scotch whisky exports to India by £1 billion over the next five years, creating 1,200 jobs across the UK.
According to Mark Kent, Chief Executive of the Scotch Whisky Association, “The reduction of the current 150% tariff on Scotch whisky will be transformational for the industry and has the potential to increase Scotch whisky exports to India significantly.”
Minimal Impact on Indian Liquor Market
Despite these changes, Indian officials maintain that the domestic alcoholic beverage market—which is largely dominated by country-made liquor (88%) and India-made foreign liquor (9.5%)—will not face significant disruption, as Scotch whisky currently accounts for just 2.5% of India’s whisky market.
A government official stated, “The incremental increase in imports of Scotch whisky will not significantly affect the domestic market. Even after the full tariff reduction, it will still attract a significant customs duty of 40%.”