Scotch whisky lovers in India are in for a windfall. As part of the newly concluded India–UK Free Trade Agreement (FTA), the Indian government has agreed to slash the current 150% import tariff on Scotch whisky—a move hailed as “transformational” by the Scotch Whisky Association. The tariff will drop immediately to 75% once the deal comes into force and will gradually decline further to 40% over the next decade.
The cut is expected to bring premium and mid-range Scotch whiskies closer to the average Indian consumer, slashing retail prices significantly. A bottle that currently retails for ₹5,000 could soon cost around ₹3,500–₹4,000 post the first reduction, and even less over the next few years depending on local taxes and distributor margins.
Mark Kent, Chief Executive of the Scotch Whisky Association, called the FTA a “once in a generation deal,” adding that it “would be a big boost to two major global economies during turbulent times.” He noted, “The reduction of the current 150% tariff on Scotch Whisky will be transformational for the industry and has the potential to increase Scotch Whisky exports to India by £1 billion over the next 5 years, creating 1,200 jobs across the UK.”
Beyond prices, the tariff cut opens the gates for a broader range of Scotch brands—particularly small and boutique distilleries—to enter the Indian market. The expectation is a surge in variety, quality, and promotional offerings as UK brands compete with Indian whiskies for shelf space and consumer loyalty.
The FTA, announced jointly by Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, reflects a larger trade vision with bilateral trade expected to more than double to $100 billion by 2030. As per UK estimates, Indian tariff cuts on British goods—including whisky, cars, cosmetics, and medical devices—will amount to over £400 million in the first year, doubling to £900 million over the next decade.
British officials see whisky as just one of the many “wins” in a deal that they say delivers “billions for the UK economy and wages every year.”
