India-UK Trade Deal Slashes Scotch Whisky Tariffs, Making Imports Cheaper
India and the UK have signed a trade deal that cuts Scotch whisky import tariffs in half, making the drink more affordable for Indian consumers
Scotch whisky lovers in India are in for some good news. Thanks to a new trade agreement between India and the United Kingdom, the cost of imported Scotch whisky is set to go down. India and the UK signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. As part of this deal, India has agreed to cut import taxes on Scotch whisky from 150% to 75% right away....
Scotch whisky lovers in India are in for some good news. Thanks to a new trade agreement between India and the United Kingdom, the cost of imported Scotch whisky is set to go down.
India and the UK signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. As part of this deal, India has agreed to cut import taxes on Scotch whisky from 150% to 75% right away. Over the next ten years, the tariff will be reduced even further to 40%, once both countries approve the deal fully.
This change will make popular whisky brands like Chivas Regal, Glenfiddich, Ballantine’s, Glenlivet, and Johnnie Walker more affordable for Indian customers. The UK is excited about this move because India is the world’s largest whisky market by volume, and British whisky exports to India were worth about $260 million last year.
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Jean-Etienne Gourgues, CEO of Chivas Brothers, said the deal will help create jobs in Scotland and increase business in both countries over the next decade but India's local alcohol industry is not fully happy about it.
The Confederation of Indian Alcoholic Beverage Companies (CIABC) worries that cheaper imports could hurt Indian brands. They fear foreign companies might "dump" their products in India at very low prices, which could reduce the growth of Indian premium and luxury liquors.
To prevent this, the CIABC had asked the government to set a Minimum Import Price (MIP) for Scotch, but the final deal does not include this rule. The group is also asking state governments to remove special discounts and tax breaks given to imported alcohol. They say it's unfair that foreign products can become cheaper than Indian-made ones.
Tariffs on Indian alcohol exports to the UK are being removed completely but there are still non-tariff barriers like rules about ingredients and aging that make it hard for Indian liquor to enter UK and EU markets. Indian whiskies and wines, though award-winning globally, still struggle to get equal access abroad.
This deal is a big step in trade between India and the UK. It brings new opportunities for foreign brands in India, and it also brings challenges for local producers who want a fair chance to compete.
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