Whisky drinkers rejoice: Steep cut to Scotch duties part of India-UK trade deal

Manufacturer of the famed single malt Rampur, Radico Khaitan, looks to import ₹250 crore worth of Scotch malt in this fiscal year. According to its MD Abhishek Khaitan, Radico Khaitan, which also brews Jaisalmer Indian Craft Gin, is set to benefit substantially from the India-UK free trade agreement (FTA).

According to the FTA announced earlier in May, India is set to slash duties on UK whisky and gin from 150 per cent to 75 per cent. And this would be slashed further to 40 per cent by year ten.

The maker of Rampur single malt is India’s largest importer of Scotch whisky for use in blending. Moreover, a significant chunk of Indian Made Foreign Liquor (IMFL) companies—like Allied Blenders & Distillers (ABD) and John Distilleries—import bulk Scotch for blending. This could mean blended drinks and spirits based on Scotch could become more affordable.

Indian whisky drinkers are in for a treat, as these indigenous brands can now offer consumers more choices with better access to high-quality spirits. India drinks the most whisky by volume in the world. In fact, industry body Scotch Whisky Association said that the country imported 192 million bottles of Scotch in 2024.

Yet, industry experts are cautious, raising concerns about whether the concessions might hurt the domestic alco-bev industry, but cutting manufacturing growth from agriculture to bottle.

However, they are yet to determine the impact of the FTA since more details of the trade deal are yet to be finalised.

The last available data about the overall national sales of IMFL is from fiscal 2023. In FY 2023, IMFL sales jumped 14 per cent by volume to 385 million cases. That year, sales of single malts from Indian brands—Amrut, Paul John, Indri, Rampur, Gianchand, etc.—outpaced global names.

Once the UK-India FTA is in place, lower-duty Scotch will flow to India, and it is expected to lift sales even further.

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