India's Whisky Revolution: Booming Scotch Imports Spark New Era

The Free Trade Agreement between India and the UK is set to significantly boost Scotch whisky imports. As India lowers tariffs on UK whisky, the market is poised for a new era of growth and collaboration, with increased imports catering to the rising premiumisation trend in the world's largest whisky market.

The implementation of a Free Trade Agreement (FTA) between India and the United Kingdom is projected to substantially increase the import of bulk Scotch whisky into India. The Scotch Whisky Association Chief Executive, Mark Kent CMG, highlighted that this move is expected to benefit Indian whisky producers who will incorporate the imported Scotch into India-Made Foreign Liquor (IMFL).

Anticipated shortly is the ratification of the FTA which will not only bring a variety of high-quality Scotch whiskies from smaller Scottish producers but also reduce import duties from 150% to 40% over ten years. This reduction is expected to make imported Scotch more affordable and competitive for Indian manufacturers.

The Indian market is experiencing a premiumisation trend, indicated by its volume-based leadership in Scotch exports. Mark Kent expressed optimism about Scotch whisky's future in India, even as the market faces competition from Japanese whisky and Bourbon, which have also seen a reduction in import tariffs.

(With inputs from agencies.)