India-UK Free Trade Agreement to Reduce Tariffs on Scotch Whisky and Gin

The recent India-UK Free Trade Agreement (FTA) is set to bring significant reductions in tariffs on Scotch whisky and gin, benefiting UK producers and consumers in India. British whiskey and gin producers will see a decrease in duties from 150% to 75% under the new deal, which will be further reduced to 40% in the tenth year of the FTA. This reduction in tariffs is expected to lead to a significant decrease in liquor prices, with estimates suggesting a maximum price drop of Rs 300 per bottle for premium whisky.

Key Takeaways:

The India-UK FTA reduces tariffs on British whiskey and gin, with duties decreasing from 150% to 75% and further reduced to 40% in the tenth year.
Scotch whisky was the UK's fifth-largest export product to India in 2024-25, valued at approximately $260 million.
Prices of Scotch whisky and gin in India are expected to fall, with estimates suggesting a maximum price drop of Rs 300 per bottle for premium whisky.
Domestic industry raises concerns about dumping, as the landmark agreement does not impose minimum import price (MIP) rules on Scotch imports.
The Confederation of Indian Alcoholic Beverage Companies (CIABC) has urged the government to introduce MIP to counter the issue of dumping.
Liquor taxes vary widely across India, with Karnataka having the highest liquor taxes (83% cess on the actual price).
Excise duties and VAT amounts on the sale or retail of liquor differ from state to state.

Statistics:

Scotch whisky was the UK's fifth-largest export product to India in 2024-25, valued at approximately $260 million (Source: [1])
Tariffs on British whiskey and gin will decrease from 150% to 75% under the India-UK FTA. (Source: [2])
Tariffs on British whiskey and gin will further decrease to 40% in the tenth year of the FTA. (Source: [2])
Maximum price drop of Rs 300 per bottle for premium whisky. (Source: [3])
Excise duties and VAT amounts on the sale or retail of liquor differ from state to state, with Karnataka having the highest liquor taxes (83% cess on the actual price). (Source: [4])

Sources:

[1] IE Online Media Services Pvt. Ltd. (2025)

[2] India-UK Free Trade Agreement

[3] Contify.com