India’s free trade pact with the UK is set to boost Scotch whisky imports, reduce tariffs, and enhance variety for consumers. Rising premiumization, lower costs, and stronger India-Scotland collaboration will drive growth, making India a key global hub for premium whisky consumption.
India is set to become the world’s largest Scotch whisky market by volume and value within the next few years. In 2024, India imported millions of bottles, reclaiming the top spot from France. Growth drivers include premiumization, rising consumer knowledge, and economic expansion, with imports expected to surge further post the India-UK free trade agreement. This marks a significant opportunity for the Scotch whisky industry in India.
Boost for IMFL Makers
India is set to witness a rise in bulk Scotch imports following the Free Trade Agreement with the UK. The inflow will benefit IMFL producers through local bottling, boosting availability, reducing costs, and supporting the growing premium whisky segment.
The upcoming India-UK FTA is expected to open doors for a wider range of premium Scotch whiskies, including products from smaller Scottish distillers, enhancing variety and accessibility for Indian consumers while boosting trade and industry collaboration between both nations.
Mark Kent highlighted that India’s growing whisky market will witness increased bulk Scotch imports following the India-UK Free Trade Agreement. These imports will be used for bottling and IMFL production, meeting rising domestic demand. As consumption expands yearly, the FTA will boost trade volumes and strengthen collaboration between the Indian and Scottish liquor industries.
Premiumisation Trend
Furthermore, India, the world’s largest whisky market, is witnessing a strong premiumisation trend, boosting demand for high-quality Scotch. With 192 million bottles exported in 2024, India remains the top export market by volume and ranks among the top five in value, reflecting rising consumer affluence and growing preference for premium global liquor brands.
The India-UK Free Trade Agreement marks a major milestone for both nations, with India reducing import duties on UK whisky and gin from 150% to 75%, and eventually to 40% by the 10th year. Mark Kent called it a “new era of partnership,” emphasizing stronger industry collaboration and trade growth between the two countries.
The reduction in customs tariffs on bulk Scotch whisky, which accounts for nearly 79% of Scotland’s exports to India, is expected to lower import costs. This will make Scotch more competitive for Indian IMFL manufacturers, fostering affordability, increased trade, and a stronger partnership between the Indian and Scottish beverage industries.
Scotch whisky currently holds a 2.5–3% share in India’s premium spirits segment, facing rising competition from Bourbon and Japanese whiskies. Despite this, the industry views it positively, citing broader consumer choice and growing premiumization. With import duties on Bourbon reduced to 100%, India’s expanding whisky market promises healthy, competitive growth opportunities.
Conclusion
The India-UK Free Trade Agreement marks a transformative moment for the whisky industry, paving the way for lower tariffs, a wider variety, and stronger bilateral trade. As premiumisation accelerates and consumer demand rises, India is poised to become the global epicenter for Scotch whisky imports and premium spirits consumption.
Written by Abhishek Singh
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