EXCLUSIVE-India assures commitment to lower Scotch tariffs in India-UK pact, sources say

India’s government ‌on Monday ​assured liquor companies it will honour the India-UK trade pact ‌and settle a dispute over Scotch tariffs, easing concerns that have rattled the $65 billion industry and players like ‌Pernod and Diageo, five people with direct ‌knowledge said.

In the first major dispute linked to a historic India-UK trade pact implemented in July, New Delhi ⁠in ​recent weeks started ⁠investigating major companies and told them that bulk Scotch imports ⁠are not eligible for the tariff reduction to ​75% from 150% agreed in the deal, Reuters has ⁠reported. "We are potentially moving towards a resolution. Bulk ⁠scotch whisky ​imports are indeed part of concessions under the trade deal," said one of the ⁠sources, while describing New Delhi's thinking in a closed door ⁠meeting ⁠with industry on Monday.

India's commerce ministry did not immediately respond to Reuters queries.