The agreement is a win-win for all stakeholders in the spirits sector, fuelling trade and attracting investment, says an expert
| Photo Credit:
CASPRO
India’s decision to cut tariffs on UK whiskey and gin under the new Free Trade Agreement has sparked concern within the domestic alcoholic beverage industry. With fears of import dumping, continued non-tariff barriers abroad and unequal treatment at home, industry stakeholders caution that India’s ambition to reach $1 billion in alcobev exports by 2030 could be in jeopardy, particularly without assured market access in key regions like the UK, EU, and Australia. While global giants like Diageo celebrate the move, Indian players brace for this potential market imbalance.
Under the recently finalised India–UK Free Trade Agreement (FTA), the existing 150 per cent import duty on Scotch whiskey will be significantly reduced. Once the agreement comes into force, the tariff will drop to 75 per cent, with a gradual reduction to 40 per cent anticipated over the next 10 years.
According to the Directorate General of Commercial Intelligence and Statistics (DGCIS) data, the UK is the primary exporter of whisky to India in both value and volume. It leads significantly, exporting whisky worth $328.31 million and 51,499.82 tonnes in volume, accounting for over 80 per cent of total whisky imports into India.
Global spirits giant Diageo welcomed the agreement. Praveen Someshwar, MD & CEO, Diageo India, said, “The landmark treaty will enable improved accessibility and choice of Scotch for Indian consumers, the largest and most exciting whisky market.”
Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), emphasised the advantages of the tariff cuts, noting that India’s aspirational consumers will now have better access to premium global brands. This development is also expected to boost growth across related sectors such as tourism and hospitality and accelerate the ongoing trend of premiumisation, positively impacting the exchequer revenues of Indian states.
Padhi noted this agreement is a win-win for all stakeholders in the spirits sector, fuelling trade and attracting investment.
Debashish Shyam, Co-Founder and Director of Ardent Alcobev Pvt Ltd, the parent company of Dram Bell, stated that UK-based manufacturers can now offer more competitive pricing for the ‘Bottled in Origin’ category.
“Our ability to reinvest in generating consumer adoption will increase. These trends will result in the overall growth of the category in terms of value and an increase in tax generation for States. The modalities of the Agreement impacting the alcobev Industry need to be studied: if there is a floor price set for availing the reduced duty structure, the timing of implementation, and the impact of state-level duties. The net resultant impact would eventually convert into a business opportunity.”
Despite the optimism from global players, the Confederation of Indian Alcoholic Beverage Companies (CIABC) expressed strong reservations. Director General Anant S. Iyer argued that the tariff reduction could undermine India’s alcobev export ambitions, unless Indian brands gain meaningful market access in key regions like the UK, EU and Australia.
While the other sectors would benefit from the FTA, the Indian alcobev industry is also seeking similar benefits. Though Indian whiskies, rum, and gins have been winning accolades globally, without the removal of non-tariff barriers and the granting of market access, India’s alcobev sector might face difficulty in meeting the export target, he said.
“We always asked for a level playing field for Indian players and only hope that the government has included a minimum import price (MIP) in the FTA to prevent dumping or under-invoicing. We also hope that non-tariff barriers will be removed to ensure better international market access to Indian alcoholic beverages. If the same template of duty reduction is followed for trade deals with the EU, the US, and other nations producing spirits and wines, the Indian alcobev industry, including the wine sector, could get adversely impacted.”
Additionally, Iyer urged the central government to advise states like Maharashtra, Kerala, Odisha, Rajasthan, and Madhya Pradesh to review and eliminate existing excise concessions for imported liquor, which currently place Indian-made foreign liquor (IMFL) and Indian wines at a disadvantage.
Published on May 7, 2025
The agreement is a win-win for all stakeholders in the spirits sector, fuelling trade and attracting investment, says an expert
| Photo Credit:
CASPRO
India’s decision to cut tariffs on UK whiskey and gin under the new Free Trade Agreement has sparked concern within the domestic alcoholic beverage industry. With fears of import dumping, continued non-tariff barriers abroad and unequal treatment at home, industry stakeholders caution that India’s ambition to reach $1 billion in alcobev exports by 2030 could be in jeopardy, particularly without assured market access in key regions like the UK, EU, and Australia. While global giants like Diageo celebrate the move, Indian players brace for this potential market imbalance.
Under the recently finalised India–UK Free Trade Agreement (FTA), the existing 150 per cent import duty on Scotch whiskey will be significantly reduced. Once the agreement comes into force, the tariff will drop to 75 per cent, with a gradual reduction to 40 per cent anticipated over the next 10 years.
According to the Directorate General of Commercial Intelligence and Statistics (DGCIS) data, the UK is the primary exporter of whisky to India in both value and volume. It leads significantly, exporting whisky worth $328.31 million and 51,499.82 tonnes in volume, accounting for over 80 per cent of total whisky imports into India.
Global spirits giant Diageo welcomed the agreement. Praveen Someshwar, MD & CEO, Diageo India, said, “The landmark treaty will enable improved accessibility and choice of Scotch for Indian consumers, the largest and most exciting whisky market.”
Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), emphasised the advantages of the tariff cuts, noting that India’s aspirational consumers will now have better access to premium global brands. This development is also expected to boost growth across related sectors such as tourism and hospitality and accelerate the ongoing trend of premiumisation, positively impacting the exchequer revenues of Indian states.
Padhi noted this agreement is a win-win for all stakeholders in the spirits sector, fuelling trade and attracting investment.
Debashish Shyam, Co-Founder and Director of Ardent Alcobev Pvt Ltd, the parent company of Dram Bell, stated that UK-based manufacturers can now offer more competitive pricing for the ‘Bottled in Origin’ category.
“Our ability to reinvest in generating consumer adoption will increase. These trends will result in the overall growth of the category in terms of value and an increase in tax generation for States. The modalities of the Agreement impacting the alcobev Industry need to be studied: if there is a floor price set for availing the reduced duty structure, the timing of implementation, and the impact of state-level duties. The net resultant impact would eventually convert into a business opportunity.”
Despite the optimism from global players, the Confederation of Indian Alcoholic Beverage Companies (CIABC) expressed strong reservations. Director General Anant S. Iyer argued that the tariff reduction could undermine India’s alcobev export ambitions, unless Indian brands gain meaningful market access in key regions like the UK, EU and Australia.
While the other sectors would benefit from the FTA, the Indian alcobev industry is also seeking similar benefits. Though Indian whiskies, rum, and gins have been winning accolades globally, without the removal of non-tariff barriers and the granting of market access, India’s alcobev sector might face difficulty in meeting the export target, he said.
“We always asked for a level playing field for Indian players and only hope that the government has included a minimum import price (MIP) in the FTA to prevent dumping or under-invoicing. We also hope that non-tariff barriers will be removed to ensure better international market access to Indian alcoholic beverages. If the same template of duty reduction is followed for trade deals with the EU, the US, and other nations producing spirits and wines, the Indian alcobev industry, including the wine sector, could get adversely impacted.”
Additionally, Iyer urged the central government to advise states like Maharashtra, Kerala, Odisha, Rajasthan, and Madhya Pradesh to review and eliminate existing excise concessions for imported liquor, which currently place Indian-made foreign liquor (IMFL) and Indian wines at a disadvantage.
Published on May 7, 2025
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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