The Scotch whisky imports from the UK are set to get cheaper for Indian consumers, with tariffs slashed from 150 per cent to 75 per cent as India and the UK have signed the Comprehensive Economic and Trade Agreement (CETA).
Notably, the landmark agreement does not impose minimum import price (MIP) rules on Scotch imports, which had been a key demand of India’s domestic industry.
Once the deal is ratified domestically by the two countries, India will immediately reduce tariffs by half to 75 per cent, and then to 40 per cent over ten years.
While tariffs on Indian exports of beverages, spirits, and vinegar have been eliminated entirely, non-tariff barriers are likely to remain.
With the arrangement coming into play, many top imported whiskey brands will get cheaper. These include Chivas Regal, The Glenlivet, Johnnie Walker, Singleton, and Talisker.
Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, on the development said, “Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry. India is the world’s biggest whisky market by volume, and greater access will be an eventual game-changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.
“The deal will support long-term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade.”
Nik Jhangiani, Interim Chief Executive, Diageo, said, “This agreement marks a great moment for both Scotch and Scotland, and we’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured.”
Anant S Iyer, director-general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), said, “Though lowering of import duty on Scotch will help the domestic industry—as Scotch used to produce blended products will also get cheaper—we hope that the government will ensure that Scotch whisky and other spirits (BIO-bottled in origin) are not dumped at low import prices or routed through any other country at cheaper rates, which would hurt the YOY growth of premium and luxury Indian brands.”