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“Even with tariffs reduced, the products still get sampled and tested,” Ian Duddy, international director of the Scotch Whisky Association, said this week while visiting India with a UK government trade delegation. Three months after the UK–India trade agreement cut India’s customs duty on Scotch from 150% to 75%, the industry’s complaint has moved from the tariff to the laboratory. The deal that took effect on July 15 changed the price of entry, not the rules of entry. Imported Scotch must still clear India’s food-safety regime, and some of it now faces customs investigators, who last week searched the offices of Diageo’s Indian business over whether bulk imports qualified for the lower duty at all. Both checks have the biggest impact on bulk whisky, the unglamorous trade that made up roughly four-fifths of the Scotch shipped to India by pure alcohol volume in 2024 and that disappears into Indian-market blends. The Food Safety Tests the India Trade Deal Leaves in Place India’s Food Safety and Standards Authority (FSSAI) clears imported food and drink through an online system linked to the customs portal. Its risk management system selects consignments for sampling and laboratory testing according to risk profiles, alongside document checks and visual inspection, under import regulations dating from 2017. FSSAI publishes no figures on how often whisky is sampled or how long tests take. What Will Whisky Look Like in 2027? Voices from Whisky Live Paris READ THE STORYThe SWA wants Scotch treated as low risk, arguing that India should reconsider sampling and testing because the UK places no equivalent condition on Indian spirits sold in Britain. “Obviously, alcohol and all food products need to be regulated. We’re not arguing against that,” Duddy said, adding that the association does not believe Scotch “needs to be regularly sampled and tested.” The SWA made the same complaint a year ago, telling a House of Lords committee that the industry faced “unnecessary and costly conformity testing and sampling requirements” at federal level in India. The agreement’s customs chapter commits both countries to endeavor to release goods within 48 hours, but only where paperwork is complete, no physical inspection is required and all regulatory checks are finished. It adds that nothing obliges a country to release goods that have not met its regulatory requirements, and a separate chapter preserves each side’s food-safety rules. The text does give the industry a standard to argue over, because each country must run risk management that concentrates inspection on high-risk consignments, speeds low-risk ones and avoids “arbitrary or unjustifiable discrimination.” Without published hold rates for Scotch since July, there is no public evidence that India is falling short of that test. Why Bulk Scotch Carries the Weight India took 53.7 million liters of pure alcohol (MLPA) of Scotch in 2024, regaining its place as the industry’s largest market by volume. Bulk malt accounted for 22.2 MLPA, bulk blend for 16.2 MLPA and bulk grain for 4.8 MLPA, against 9.3 MLPA of bottled blends and 1.2 MLPA of single malt. That puts bulk at about 80% of the total, and India alone absorbed more than 70% of all the bulk malt Scotland exported that year. The trade kept growing in 2025, when the SWA put shipments to India at the equivalent of 220 million 70cl bottles, up 15%, worth £286 million. That figure is a standardized measure of volume, not a count of bottles crossing the border, because most of the liquid travels in containers and is blended and bottled in India. This is the whisky inside Pernod Ricard’s Royal Stag and Blenders Pride and Diageo’s McDowell’s, which mix imported Scotch with locally distilled spirit, and Pernod and Diageo are the two companies now answering questions from customs investigators. The Bulk Scotch Classification Question India’s Directorate of Revenue Intelligence searched offices of United Spirits, Diageo’s Indian business, at several locations on October 16, in what the company called an “industry-wide exercise.” Pernod Ricard says it is cooperating with the same agency, and people familiar with the matter say inspectors questioned executives at its headquarters near New Delhi about Scotch imports. The inquiry is understood to concern bulk Scotch concentrates, the Scotch shipped in containers to be blended into Indian brands, with inspectors arguing that the treaty’s duty relief does not extend to them. Neither the directorate nor the companies have said what separates a concentrate from the bulk malt and grain counted in export statistics, or which rate of duty the investigators believe should apply instead. Diageo says it has always complied with local laws, Pernod says it is committed to answering the authorities’ questions, and no finding or penalty has been announced. The industry had understood bulk to be covered, and in its evidence to the Lords last October the SWA said the tariff cuts “will apply to both bottled and bulk exports, with no minimum import price threshold.” Whether a particular concentrate counts as Scotch whisky under the agreement’s tariff lines is a question of customs classification, and the answer will decide how much of the headline saving reaches the bulk trade. What the India Trade Deal Changes, and What It Doesn’t India’s duty on Scotch is scheduled to fall in stages to 40% by the tenth year of the agreement. For decades imported Scotch carried a 150% basic customs duty, with additional federal levies once pushing the total burden far higher, and European Union talks that might have eased it began in 2007 and stalled in 2013. Indian states set their own excise rates, prices and route-to-market rules, and the treaty leaves those untouched, so a halved customs duty does not mean a halved shelf price. For drinkers, little changes until the savings survive state taxes and distributors’ margins. Whether FSSAI eases its risk profile for whisky, and whether the revenue inquiry ends in formal demands, matters more to distillers selling in bulk. For them, the outcome now rests less with trade negotiators than with two Indian agencies: a food regulator deciding how risky Scotch is, and a customs directorate deciding what counts as Scotch in the first place.

India’s liquor trade group asks government to clarify Scotch tariffs under U.K. trade deal Investigators told importers that bulk Scotch concentrates may still face a 150% duty, alarming Pernod Ricard and Diageo Friday, October 23, 2026 A trade group representing major liquor companies in India has asked the government for urgent intervention after Indian investigators told importers that reduced tariffs under the new India-United Kingdom trade deal do not apply to bulk shipments of Scotch whisky concentrates, according to a letter reviewed by Reuters. The dispute centers on one of the most closely watched parts of the trade agreement, which took effect on July 15 after years of negotiations. Under the pact, India agreed to cut import duties on certain Scotch whisky products from 150% to 75% immediately, with the rate set to fall to 40% over 10 years. The British government had said the deal would help flagship U.K. products such as whisky. But Indian tax investigators have privately told companies that bulk imports of Scotch whisky concentrate should not receive the lower 75% duty and instead must be classified under a customs category that attracts the full 150% tariff, three people with direct knowledge of the matter told Reuters. That position has raised the first major dispute over implementation of the free trade deal and has alarmed companies that rely on imported Scotch spirit for products made and sold in India. In a letter sent on Friday to India’s commerce minister, the International Spirits and Wines Association of India said the classification issue threatens to undermine a key market access benefit that India and Britain negotiated and agreed under the pact. The group said the preferential tariff treatment could effectively become unavailable for those imports if the current interpretation is maintained. The association did not comment on the contents of the letter. India’s commerce ministry did not immediately respond to a request for comment. The issue has become more sensitive after India’s Directorate of Revenue Intelligence searched the offices of Pernod Ricard and Diageo this month and questioned executives as part of an investigation into whether the companies wrongly classified imported products in order to claim the lower tariff rate. Earlier this week, both companies told Reuters they were cooperating with Indian authorities. Pernod declined to comment further. Diageo did not respond to a request for comment. The case matters because India is one of the world’s largest alcoholic drinks markets and a crucial growth engine for global spirits companies. The country’s liquor market is worth about $65 billion, and imported spirits remain a small but influential part of the business. According to Crisil Ratings, Britain accounts for nearly 75% of spirits imported into India, driven mainly by Scotch whisky. For companies such as Pernod and Diageo, the tariff interpretation has commercial importance beyond imported premium bottles sold directly to consumers. Both groups import bulk Scotch concentrates and use them in India to make widely sold brands including Royal Stag, Blenders Pride and McDowell’s. Industry executives say the economics of those products depend heavily on whether the imported spirit qualifies for the lower duty. People familiar with the matter said the companies believe the goods shipped from the U.K. should fall under the tariff lines covered by the trade agreement and should therefore receive the reduced 75% duty. The industry association made the same argument in its letter, saying the agreement expressly provides preferential tariff treatment for whisky under the relevant customs lines. The group also warned that uncertainty over classification is already affecting business planning and could disrupt legitimate industry operations unless the government issues a clarification quickly. It said prompt action would help ensure that the market access gains negotiated by India and Britain are actually delivered in practice. A spokesperson for the British government said London is working with New Delhi to resolve the issue and to make sure British companies can export under the tariff terms set out in the trade deal. The disagreement comes against a broader backdrop of tension between foreign companies and Indian authorities over import classifications and tax demands. Such disputes have long been a source of concern for overseas investors in India, who have in past years faced large claims for back taxes and penalties. Multinational companies including Samsung and Volkswagen have also been caught in customs and tax fights with the Indian government. Pernod in particular is already under pressure in India on several fronts. The company, whose largest market by volume is India, is facing antitrust cases and a $314 million tax claim from Indian authorities, who have accused it of undervaluing some imports. Pernod has denied any wrongdoing. The tariff fight over Scotch is politically sensitive as well because whisky was one of the most difficult issues during the India-U.K. trade talks. India has long maintained some of the highest import duties in the world on alcoholic beverages, and Scotch producers had pressed hard for cuts to improve access to a market with rising incomes and strong demand for premium spirits. The final deal was presented by both governments as a breakthrough, with lower tariffs seen as a concrete commercial win for British exporters. The current dispute suggests that even after a trade agreement takes effect, the commercial outcome can depend on how customs authorities interpret product categories at the border. In this case, the disagreement is not over whether tariff cuts were negotiated, but over which forms of Scotch whisky are entitled to benefit from them. That question is especially important for India’s domestic spirits industry because bulk Scotch imports are used as inputs in blended products made inside the country. If those imports remain subject to 150% duties, companies may face higher costs, altered sourcing decisions and pressure on margins in a market where competition is intense. Industry officials say it could also weaken one of the practical benefits that the trade agreement was expected to deliver. So far, Indian authorities have not publicly explained why bulk Scotch concentrate should be excluded from the lower tariff bracket, and there has been no official clarification from the government on how the relevant customs lines should be interpreted under the trade pact. Until that changes, producers and importers are left facing uncertainty over both future shipments and the potential tax exposure tied to past imports now under investigation. For Pernod and Diageo, the matter carries both legal and financial risk. Investigators are examining whether the companies’ use of the lower rate was proper, and the answer could determine whether they face additional duty demands. For the wider industry, the case has become a test of whether one of the headline promises of the India-U.K. agreement will hold once it reaches the customs gate.

India Could Surpass US as Top Scotch Import Market Thanks to Tariff Cuts India could overtake the United States as the world’s largest Scotch whisky market by export value as lower import duties and rising demand for premium spirits fuel growth, according to the Scotch Whisky Association. Scotch whisky exports to India reached £286 million (about $385 million) in 2025, making it the world’s largest market by volume but the third-largest by value, behind the U.S. and France, Ian Duddy, the association’s international director, said, according to Mint. Exports totaled about 220 million bottles and have grown by 8% to 9% annually despite high import duties. The India-UK free trade agreement, which took effect July 15, cuts import duties on Scotch whisky from 150% to 75%, with a further reduction to 40% over the next decade. The lower duties could make imported Scotch more affordable and encourage consumers to buy higher-end bottles, though state taxes and distribution costs will influence final retail prices. India’s whisky market is already growing, with Scotch gaining ground faster than the category overall. Whisky consumption rose 3.7% to 268.8 million nine-liter cases in 2025, while Scotch consumption increased 5.3% to 9 million cases, according to data from drinks consultancy IWSR cited by Mint. Scotch is projected to grow at an annual compound rate of 5.4% from 2025 to 2030, compared with 3.6% for whisky overall. The U.S. remained the most valuable export market for Scotch whisky in 2025, with shipments worth £933 million. France ranked second at £404 million, while global Scotch whisky exports totaled £5.3 billion. Duddy said the tariff cuts between India and the U.K. have been important for the industry. However, lower customs duties will not translate directly into equivalent retail price cuts because state excise duties, distribution costs and retailer margins also affect prices. Paul Ross, chief executive of Edrington India, which represents the Scottish spirits maker behind The Macallan, expects imported Scotch retail prices to fall by 7% to 10% as the lower duties reach consumers. “That can only encourage people to trade up, I think,” Ross told Mint. Lower prices could also narrow the gap between Indian retail prices and those in overseas markets such as Singapore, Dubai and London. The extent and timing of any reductions will depend in part on state-level pricing approvals and other taxes. Douglas Alexander, the U.K. secretary of state for Scotland, said the tariff reductions were already making a difference to importers. The U.K. government estimates the trade agreement could increase bilateral trade by £25.5 billion a year over the long term. Advertisement About 80% of Scotch whisky exports to India are shipped in bulk, with the remainder sold in bottles, Duddy said. Some bulk whisky is bottled locally, while some is used in Indian-made foreign liquor, a category of spirits produced in India. The trade agreement could encourage companies to invest in local bottling, warehousing and distribution as sales expand. “If the free trade agreement works well, we would expect to see an increase in that investment locally in India,” Duddy said. India’s state-by-state tax systems and regulations remain a challenge for overseas spirits companies. Ross said Haryana could be among the first states to reflect the duty cuts in retail prices, followed by Delhi, as authorities approve revised price lists. Duddy advised companies entering India to focus on one or two states and build local partnerships rather than attempt to navigate the entire market at once. Industry executives see rising incomes and consumers’ willingness to spend more on premium bottles as key drivers of future Scotch sales. “People want to drink less, but drink better,” Ross said. Edrington has seen demand for 25- and 30-year-old expressions of The Macallan exceed expectations, Ross said, with premium bottles increasingly appearing in consumers’ home bars. India’s single malt market totals about 360,000 cases, including 75,000 to 80,000 cases in the ultra-premium segment, according to Ross. As import duties fall, the industry expects demand for both bulk Scotch and bottled whisky to rise. Whether India overtakes the U.S. in export value will depend on how quickly premium demand grows and how much of the tariff savings reaches consumers. Scan any liquor or NA bottle to see all expert reviews in one place with the free Daily Pour app. Download today! Founded by Dan Abrams, The Daily Pour is the ultimate drinking guide for the modern consumer, covering spirits, non-alcoholic and hemp beverages. With its unique combination of cross-category coverage and signature rating system that aggregates reviews from trusted critics across the internet, The Daily Pour sets the standard as the leading authority in helping consumers discover, compare and enjoy the best of today's evolving drinks landscape.

British Ministers Tell Parliament Scotch Whisky Protections Remain Unchanged The government said the Scotch Whisky Association’s challenge to English whisky’s geographical indication should be settled by the courts Friday, October 23, 2026 The British government told lawmakers in the House of Commons on Thursday that an appeal brought by the Scotch Whisky Association over the geographical indication for English whisky is before the relevant court, while insisting that Scotch whisky’s legal protection remains unchanged. According to the Commons record in Hansard, ministers said the recognition of English whisky under the UK geographical indication system does not alter the rules that protect Scotch whisky and does not reduce the status attached to the Scottish product. The exchange took place during oral questions in the Commons chamber on Oct. 22. The statement addresses a dispute that has drawn attention across the spirits industry because geographical indications are a central part of how producers protect names, methods and origin. In the case of whisky, those protections are closely tied to branding, export value and the terms that can appear on labels in domestic and overseas markets. The government’s position, as set out to MPs, was that the court appeal by the Scotch Whisky Association should run its course through the proper legal process. Ministers also sought to reassure Parliament that the separate existence of an English whisky geographical indication does not rewrite the long-established legal framework around Scotch whisky. That response is significant because the argument goes beyond a narrow legal point. Producers in different parts of the UK are competing in a premium drinks market where definitions such as “single malt” and other production descriptions carry commercial weight. Any change, or even the perception of a change, can affect how products are marketed to buyers, distributors and regulators. Scotch whisky has one of the best-known protected food and drink designations associated with the UK. Its rules are tied to place of production and method, and the category has long been defended by producers and governments as an important national export. The current disagreement has raised questions about how similar protections should apply to whisky made in England and whether category terms should be interpreted in the same way across different regional products. In the Commons exchange, the government did not indicate that it planned to alter Scotch whisky’s protected status. Instead, it emphasized continuity. That was a direct answer to concerns that recognition of English whisky might weaken the meaning or enforceability of protections already attached to Scotch. The Scotch Whisky Association’s appeal is therefore emerging as the main channel for resolving the dispute. The association, which represents Scotch producers, has challenged the matter before the court with jurisdiction over the case. Ministers told MPs that the government acknowledges that legal process and that it is now for the court to consider the arguments. For the drinks sector, the case could have wider consequences even before a judgment is reached. Rules on how whisky can be made and described are part of what separates one product from another in a crowded market. If the boundaries around terms such as “single malt” are tested in court, distillers, importers and retailers may all be watching closely for signs of how future standards will be interpreted. That matters especially in international trade. Protected names and category definitions help producers defend products in export markets and support claims about authenticity and origin. A dispute inside the UK over how one whisky category is defined could, depending on the outcome, influence future arguments over labeling and recognition abroad, even if the government says the Scotch framework itself is not being changed. The parliamentary exchange also showed how food and drink protections, often seen as technical regulatory matters, can quickly become political. Questions in the Commons reflected concern not only about legal definitions but also about the economic interests tied to one of Britain’s most prominent spirits industries. Hansard’s record of the day lists “Scotch Whisky: Protected Status” among the items taken in the Commons chamber. The broader page for the proceedings said some content for the date was being updated, but the government’s central message, reflected in the parliamentary exchange, was clear: the Scotch Whisky Association’s appeal is proceeding through the court, and ministers do not accept that the English whisky geographical indication changes the protections that apply to Scotch whisky.

India’s investigation into Scotch whisky imports by Diageo and Pernod Ricard has sparked a dispute over the India–UK trade deal, which cut import duties on eligible Scotch whisky from 150 percent to 75 percent, with a further reduction to 40 percent planned over the next 10 years. According to Reuters, the International Spirits and Wines Association of India (ISWAI), which represents the two companies, has written to the commerce minister seeking urgent intervention, warning that India’s interpretation of customs rules could prevent bulk Scotch concentrates imported from Britain from benefiting from the reduced duty. The dispute centres on whether bulk Scotch concentrates imported from Britain qualify for the lower tariff under the trade agreement. Indian revenue investigators have maintained that the concentrates should attract the full 150 percent import duty, rather than the reduced 75 percent rate available to eligible Scotch whisky products. The Directorate of Revenue Intelligence (DRI) searched the offices of Diageo and Pernod Ricard this month and questioned executives as part of an investigation into whether the companies misclassified imports to benefit from lower duties. The investigation is ongoing, and the allegations have not been established as wrongdoing. The industry group has warned that the interpretation could undermine a key benefit negotiated under the India–UK agreement. The tariff reduction was intended to improve market access for British products, including Scotch whisky, but the dispute has raised questions over which imported products qualify for the concession. Diageo and Pernod Ricard import bulk Scotch concentrates from Britain and blend them with other ingredients to manufacture popular Indian-market brands, including Royal Stag, Blenders Pride and McDowell’s. The outcome of the investigation could affect the companies’ import costs and the commercial benefits they expected from the trade deal. The dispute has implications for India’s alcohol industry, valued at around $65 billion. Britain accounts for almost 75 percent of India’s imported spirits, primarily driven by Scotch whisky, according to Crisil Ratings. ISWAI has called for urgent clarification from the government to ensure that the tariff benefits agreed under the trade deal can be implemented as intended. The association has argued that uncertainty over customs classification could disrupt businesses and weaken the practical value of the agreement.

India’s Scotch probe of Diageo, Pernod undermining India-UK pact benefits, says trade group ISWAI said excluding bulk Scotch concentrates from the reduced 75% import duty undermines the trade pact, as Indian investigators probe Diageo and Pernod Ricard over import classifications A group representing liquor makers Diageo and Pernod Ricard has challenged India’s decision to exclude bulk Scotch imports from a reduced 75% tariff, arguing that the move contradicts provisions agreed under the India-UK trade deal, according to a letter seen by Reuters. In a letter to the commerce minister on Friday, the International Spirits and Wines Association of India (ISWAI) said the classification dispute could undermine a key benefit negotiated under the trade agreement, which came into effect on July 15. Whisky tariffs were a major sticking point during years of negotiations leading up to the deal. India ultimately agreed to reduce import duties on certain Scotch imports from 150% to 75% immediately, with a further reduction to 40% over 10 years. The British government had said that "iconic UK products" such as whiskies would benefit from the agreement. However, Indian investigators have privately told companies that the reduced tariff does not apply to bulk Scotch concentrates, triggering the first major dispute over the trade pact since its implementation. India’s Directorate of Revenue Intelligence searched the offices of Pernod and Diageo and questioned executives this month as part of an investigation into whether the companies misclassified imported products to benefit from the lower duty. ISWAI warned in its letter that the classification issue "risks undermining, in practice, an important market-access benefit negotiated and agreed between India and the United Kingdom." "The preferential tariff treatment negotiated ... could effectively become unavailable for these imports," the letter added. Both companies told Reuters earlier this week that they were cooperating with Indian authorities conducting the investigation. Dispute raises concerns for India’s alcohol industry Tariff disputes have long been a source of friction for foreign investors in India, with companies in the past facing demands for substantial back taxes. Samsung and Volkswagen are among the companies that have been embroiled in such disputes. Pernod is already facing antitrust cases in India and a $314 million back-tax demand from Indian authorities, who accuse the company of undervaluing certain imports. Pernod has denied wrongdoing. The ISWAI letter highlights the wider implications of the investigation for India’s $65 billion alcohol market. Britain accounts for nearly 75% of India’s imported spirits, primarily driven by Scotch whisky, according to Crisil Ratings. Indian government inspectors have told companies that bulk imports of Scotch concentrates do not qualify for the reduced 75% tariff and must instead be declared under a customs classification that attracts a 150% duty, three people with direct knowledge of the matter told Reuters. Pernod and Diageo import bulk concentrates and blend them with other ingredients to produce popular Indian brands such as Royal Stag, Blenders Pride and McDowell’s. The three people said companies, including Diageo and Pernod, believe concentrates imported from Britain should qualify for the lower tariff. ISWAI also argued in its letter that the India-UK agreement expressly provides preferential tariff treatment for whisky under the relevant tariff lines. The association called for an urgent clarification, saying it could ensure that the market-access benefits negotiated by India and Britain are realised "while avoiding uncertainty and disruption for legitimate industry participants," the letter said. A spokesperson for the British government said: "We are working with the Government of India to resolve this issue to ensure UK businesses can export under the tariffs agreed in the trade deal." With inputs from agencies

India cut Scotch whisky duties to 75% under its trade deal with Britain Industry groups said state taxes, distribution costs and retailer margins will determine how much of the tariff cut reaches drinkers Friday, October 23, 2026 India may be on track to become the world’s largest market for Scotch whisky by value after its trade deal with the United Kingdom sharply cut import duties, but industry groups say any drop in shelf prices will likely be uneven because state taxes, distribution costs and retailer margins still shape what consumers pay. The shift follows the India-UK free trade agreement, which took effect on July 15 and reduced India’s customs duty on Scotch whisky to 75% from 150%. The tariff is scheduled to fall further to 40% over the next 10 years. The Scotch Whisky Association has said the lower duty, combined with rising demand for premium spirits in India, could allow the country to overtake the United States as the largest Scotch market by export value. India already holds a leading position in the category by volume. According to Scotch Whisky Association data, exports of Scotch to India were worth £286 million, or about Rs 3,614 crore, in 2025. That made India the largest market by volume, but only the third largest by export value, behind the United States and France. The lower duty is expected to improve the competitiveness of imported Scotch in India’s premium whisky segment. That could expand consumer choice and intensify competition for domestic producers, especially in the premium and above categories, where Indian companies have been investing more heavily in distillation, aging, brand building and quality upgrades. Industry executives and trade groups, however, say the import tax cut should not be confused with a direct cut in retail prices. Abhishek Modi, managing director of Modi Illva and a board member of the Confederation of Indian Alcoholic Beverage Companies, said the reduced duty will make Scotch more accessible, but he does not expect the full benefit to reach consumers. He said state taxes, distribution costs and margins will continue to influence final prices. That means price changes are likely to vary by state, brand and sales channel. Early signs of adjustment have already appeared in some Indian markets, where Scotch prices have fallen since the trade deal came into force. But the reductions have differed widely, depending on local tax structures and on how much of the lower import cost companies choose to pass through. For the beverage business, that distinction matters. The tariff cut has raised expectations that the trade deal will quickly make imported spirits cheaper and accelerate volume growth, but the structure of India’s alcohol market suggests the effect may be more limited at the cash register. That is an important signal for drinks companies watching India’s trade policy, because it shows that lower border duties do not necessarily translate into equivalent price cuts for consumers once state levies and route-to-market costs are added. The Confederation of Indian Alcoholic Beverage Companies, which represents domestic liquor producers, has argued that trade liberalization should be matched by domestic tax changes so Indian premium spirits can compete on more equal terms. The group said comparable Indian-made products face a heavier state-level tax burden in several markets. It warned that lower customs duties on finished Scotch could widen that gap if states do not revise existing tax and fee structures. The group also said state governments should review taxes, fees and margins that it says discriminate against Indian products. It has cautioned that if imported spirits benefit from lower state levies than Indian-made foreign liquor, or IMFL, domestic premium brands could lose market share. That, in turn, could affect state revenues, since alcohol taxation is a major source of income for state governments. CIABC has also asked authorities to watch import prices and volumes closely for signs of dumping or unfair pricing. The group said any response should be evidence-based. At the same time, it acknowledged that cheaper bulk Scotch can benefit Indian companies, since imported whisky is used in premium blends made in India. That can support local blending, bottling, packaging and employment, even as finished imported bottles become more competitive. A separate concern for domestic producers is the way some brands may change their supply chains to take advantage of lower duties and different local tax treatment. CIABC said some Scotch products that were previously bottled in India are shifting to bottled-in-origin imports because those imports can attract lower state levies. The group said that trend is already becoming visible in markets such as Maharashtra. The result is a more complicated competitive picture than a simple imported-versus-local divide. Some Indian distillers could face greater pressure from premium imported bottles on store shelves, while others could gain from access to lower-cost bulk Scotch for blending. Much will depend on how companies position their brands, how state governments adjust local rules and how quickly consumers move up from mid-range whisky to premium products. Mokksh Sani, founder of Living Liquidz and co-founder of Cartel Bros, said India’s potential to become the largest Scotch whisky market by value reflects the growing sophistication of the country’s premium spirits segment. He said the duty reduction should improve price access and encourage more consumers to try higher-end whisky. But he added that the larger opportunity is not only lower prices. In his view, category growth will also depend on consumer education, distribution and a broader appreciation of quality and craftsmanship. That could reshape strategy across India’s spirits market. Domestic whisky makers are likely to face a narrower price gap with imported Scotch, which may force them to sharpen product identity rather than compete mainly on price. Producers may need to make new decisions on local bottling, sourcing, distribution and product development as the market expands. The debate also highlights a broader tension in India’s alcohol industry: how to use a trade deal to widen consumer choice without weakening local manufacturing. Domestic producers say premiumization in India is creating a real opening for Indian-made spirits, and they want tax policy to support that shift. Importers and brand owners, meanwhile, see the tariff cut as a chance to deepen a market where demand for premium alcohol has been rising steadily. As a result, the market impact of the India-UK agreement is likely to be defined less by the headline tariff change alone than by what happens next inside India’s state-level alcohol systems. Companies are now watching whether states adjust local duties, whether retailers pass on cost savings and whether consumers respond by trading up to imported labels or by putting more pressure on Indian brands to differentiate through production methods, maturation, flavor profiles and branding.