In a historic trade move between India and the United Kingdom (UK), a Comprehensive Economic and Trade Agreement (CETA) was signed between both the countries on July 24, 2025. This India-UK CETA will see scotch whisky import tariffs slashed from 150 per cent to 75 per cent, making whisky imports from the UK much cheaper. While the agreement does not impose a minimum import price (MIP) rules on scotch imports as demanded by India’s domestic industry, here’s the full scoop of this landmark trade deal.
The India-UK CETA was under negotiation for about three years now, however, it will now give a much-needed boost to the bilateral trade between the two countries. The deal was signed by Commerce Minister Piyush Goyal and his British counterpart Jonathan Reynold in the presence of the Prime Ministers (PM) of both countries, PM Narendra Modi and PM Keir Starmer respectively.
Under the India-UK CETA, India will immediately reduce tariffs by half, from 150 per cent to 75 per cent. And over the course of ten years, it will be reduced to 40 per cent.
Trade experts have weighed in how much Scotch would approximately cost after the CETA deal. They say that even if all customs duty reductions are passed on by states, imported Scotch whiskies will see a price reduction in the range of INR 100 to INR 300 per bottle.
Piyush Goyal states that this deal will provide duty-free access for about 99 per cent of Indian exports. This will in-turn unlock “nearly USD 23 billion in opportunities for labor-intensive sectors, marking a new era for inclusive and gender-equitable growth”.
UK Scotch distillers have welcomed this reduction in tariffs. This is because it will open a wider access to India, world’s biggest whisky market by volume. Valued at roughly USD 260 million, whisky was the fifth-largest export to India from the UK in 2024-25.
As per an official statement of the UK government, whisky producers in the UK will gain an advantage over international competitors in reaching the Indian market. Though UK distillers have welcomed the move with open arms, India’s domestic alcoholic beverage industry has flagged potential dumping concerns with this India-UK CETA deal.
Also Read: Booze Vs Cannabis: Big Alcohol Companies Fighting Back Cannabis Drinks Sales
Anant Iyer, Director-General of the Confederation of Indian Alcoholic Beverage Companies (CIABC) stated, “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.”
To tackle this ‘dumping’, Iyer had suggested on behalf of India’s domestic alcoholic beverage industry that the government introduce MIP rules for Scotch whisky. However, the agreement does not impose any such MIP rules on scotch imports. He is of the opinion that state governments must end all concessions, including lower brand registration fees and reduced excise duties as import duties are being cut drastically.
What this trade deal may eventually do is create a situation where importing alcobev products becomes cheaper than producing it in India. And with lower import duties, it may also become more convenient for multinational corporations to import their products rather than making it in India. Iyer then feels that it is highly discriminatory to India-made alcoholic beverages and that “state governments should end all discrimination.”
That’s not all! Iyer also flagged the lack of market access for Indian-made foreign liquor (IMFL) in the UK and the European Union (EU) due to non-tariff barriers related to maturation and ingredients. Even though Indian whiskies, gins, rums, and other spirits are winning big on the global stage, the lack of removal of non-tariff barriers and absence of reciprocal market access will make exports more difficult.
Also Read: What Cocktail Ingredients You Are Based On Your Zodiac Sign!
With the India-UK CETA in place, Scotch is set to be cheaper in India than what it was earlier. Scotch whisky import tariffs have been slashed from 150 per cent to 75 per cent and it will further reduce to 40 per cent by the tenth year of the deal. However, the Indian alcoholic beverage industry has raised concerns over this landmark deal. We only hope that these concerns get resolved over time, making the India-UK CETA beneficial for the Indian market as well.
%20(1).jpg&w=3840&q=100)
%20(1).jpg&w=3840&q=100)
