India And under the proposed Free Trade Agreement (FTA) between Britain, the reduction in import duty on Scotch whiskey will not have any major impact on the Indian domestic market. According to government sources, this deduction in fee will be implemented gradually in the next 10 years. Under the agreement, India will reduce the scotch whiskey and the 150% tariffs on which will reduce it to 40% by the 10th year to 40%. The official believes that in such a long period and still 40% tariffs, the possible increase in the import of Scotch whiskey will not have any significant impact on the domestic market.
World’s largest scotch whiskey export market
According to data from the Scotch Whiskey Association (SWA), India has become the world’s largest Scotch whiskey exporting market, leaving behind France in terms of quantity. In 2024, India exported 19.2 million bottles, while in 2023 the figure was 16.7 crore bottles. India’s alcoholic beverage market is a large and fast developing area, the third largest market for the global and the second largest market for Spirits. It is estimated that the market is worth US $ 52.4 billion and its annual growth rate from 2025 to 2032 is likely to be 7.7%. The Indian whiskey market mainly dominates indigenous liquor (88%) and foreign liquor (9.5%) made in India, while Scotch whiskey share only 2.5%.
The domestic market will not affect
The official reiterated that the deficiency in duty on the import of Scotch whiskey from Britain is a long process and will still be sufficient duty, so there is no possibility of any significant impact on the domestic market. He also said that FDI in the liquor industry (FDI) has been affected due to high duty on imported liquor.
Review of concession in tariff
Commenting on the deal, Anant S. Iyer expressed concern that if the business agreements with the European Union, the US and other Spirit and Wine Producer countries were similarly deducted, the Indian Alcobev industry, especially the wine sector could have a negative impact. He urged the central government to advise states like Maharashtra, Kerala, Odisha, Rajasthan and Madhya Pradesh to review the excise concessions being given on imported liquor. Iyer said that the government aims to target US $ 1 billion from Indian alcoholic beverages by 2030, but it would be difficult to achieve this target without ensuring proper market access (especially in Britain, European Union and Australia).
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