Historic Trade Deal Between India and UK

In a landmark move, India and the UK have sealed a comprehensive trade deal, promising to halve the steep 150% import duty on Scotch whisky. However, consumers will have to wait until next year to see prices drop.

What This Means for Scotch Prices

Despite the reduction in import duties, the price of Scotch whisky, including popular brands like Glenlivet and Chivas Regal, is expected to decrease by only 8-10%. This is because customs duty constitutes just 15-20% of the retail price, with the rest being state taxes and distribution margins.

Industry Reactions

Major players in the spirits industry, including Diageo, have welcomed the agreement. "This treaty will boost bilateral trade and increase the accessibility of premium Scotch whisky in India," said Praveen Someshwar of Diageo India.

Future Prospects

The deal, awaiting ratification by the UK Parliament, will gradually reduce customs duties to 40% over the next decade. This not only benefits Scotch lovers but also Indian manufacturers who use imported Scotch for blending in local brands.