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How much cheaper will whiskey be after India-UK FTA? What experts said
India is reducing duty on UK whisky and gin from 150 per cent to 75 per cent and further to 40 per cent in the tenth year of the deal.
The India-United Kingdom free trade agreement is expected to lower import duties on spirits, potentially making premium international liquor brands more affordable for Indian consumers.
However, experts have cautioned that the impact may be modest, with price reductions likely capped at around ₹300 per bottle.
India and the UK signed a historic bilateral Free Trade Agreement (FTA) on Thursday. The pact will boost bilateral commerce by $35 billion in the long run.
The India-UK FTA was finalised in May after more than three years of negotiations and was signed by commerce minister Piyush Goyal and his UK counterpart Jonathan Reynolds during Prime Minister Narendra Modi’s visit to Britain.
As per the FTA signed in London between the two governments, India is reducing duty on UK whisky and gin from 150 per cent to 75 per cent and further to 40 per cent in the 10th year of the deal.
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"Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150 per cent to 75 per cent and then dropped even further to 40 per cent over the next ten years - giving the UK an advantage over international competitors in reaching the Indian market," as per an official statement of the UK government.
Experts’ predictions on whiskey prices
The International Spirits and Wines Association of India (ISWAI), which represents premium alcoholic beverage companies in India (mostly MNCs), hailed the trade deal as a historic moment for the alcoholic beverage sector.
“The deal will significantly benefit Indian consumers, as premium international spirits will become more accessible, thereby accelerating the ongoing trend of premiumisation,” ISWAI CEO Sanjit Padhi was quoted as saying by PTI. "It will also stimulate growth across ancillary sectors, such as hospitality, tourism, and retail, while potentially increasing the revenue for Indian states."
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Industry experts, however, opined that while companies could benefit end-consumers, there would be very few benefits in terms of price reduction.
“Consumer prices for imported Scotch (whiskey) are not likely to change much,” liquor industry expert Vinod Giri said, according to PTI.
"Most of the taxes on alcohol sit in states, and even if all customs duty reduction is passed on, the impact on consumer prices of imported Scotch whiskies will be in the range of ₹100-300 per bottle," he added.
