India's premium whisky market could be headed for one of its biggest structural shifts in years after the India-UK Free Trade Agreement (FTA) halved import duties on Scotch whisky and gin. Distillers and industry bodies expect the deal to lower prices for imported labels, widen consumer choice and intensify competition in the premium segment.
The agreement, which came into force earlier this month, immediately reduces customs duty on Scotch whisky and gin to 75% from 150%, with tariffs set to decline further to 40% over the next decade. While the move is expected to make imported Scotch cheaper, industry executives say consumers should not expect dramatic price cuts immediately, as state excise duties, VAT, logistics costs and distributor margins continue to account for a significant portion of retail prices.
