Will Whisky Get Cheaper? Inside The India‑UK Spirits Trade Deal

Scotch whisky has always had a steady following in India. Many consumers buy it during festivals or bring it in from international trips. But the price difference between what a bottle costs in London and what it sells for in Mumbai or Delhi is huge. Most of that gap comes from high import duties and state taxes. Now, with a fresh trade agreement between India and the UK, some of these charges are expected to be reduced. The deal includes a phased cut in tariffs on imported spirits like Scotch. It also opens the door for Indian-made whisky to reach bars and shops in Britain more easily. While it will take time to see the full effect, there are already signs that both sides of the industry are preparing for change.

Tariff Changes And Price Impact

Imported spirits have faced some of the highest taxes in India. A bottle of Scotch whisky arriving at an Indian port is hit with a 150% basic customs duty. That is only the beginning. After this, there are state excise duties, distribution charges, and retail margins. In some states, these extra costs push the total price up by as much as 250%.

For example, a 700 ml bottle of Johnnie Walker Black Label might cost around ₹2,500 in the UK. The same bottle, once taxed and sold through Indian retail channels, often reaches a price of ₹6,000 to ₹7,500, depending on the state. Vinod Giri, Director General of CIABC, said: “Consumer prices for imported Scotch whisky are not likely to change much. Most of the taxes on alcohol sit in states. Even if all customs duty reduction is passed on, the impact on consumer prices of imported Scotch whiskies will be in the range of Rs 100‑300 per bottle.”  

What Indian Consumers Can Expect At The Retail Level

As part of the new deal, India has agreed to reduce the customs duty on certain imported spirits in phases. The rate will drop from 150% to 100% over a ten-year period. Some small reductions will begin earlier, possibly within the next two years.

For example, a bottle of Glenfiddich 12 Years, currently priced at ₹6,500–₹7,500 in Delhi and Mumbai, may see a retail price of around ₹5,500 in a few years. Lower-tier premium whiskies like Ballantine’s and Teacher’s 50 might enter the ₹2,000–₹2,500 bracket, making them more accessible to middle-income buyers.

Mark Kent, Chief Executive of the Scotch Whisky Association, called the deal “transformational” and said it had the potential to increase Scotch exports to India by £1 billion over five years. He noted that India is Scotch’s largest market by volume. Brands like Glenlivet, Chivas Regal, and Ballantine’s may see the first signs of price easing. Entry-level Scotch whiskies, which already have some visibility, could become more popular if the price gap with domestic brands narrows. Local retailers will still play a major role in how these changes appear at the shelf, especially in cities beyond the main metros.

Indian Brands Gaining From UK Access

The agreement also allows Indian whisky producers to enter the UK market with fewer restrictions. This could create new chances for Indian brands that are already working on high-quality blends and single malts. Several labels such as Amrut, Rampur, and Paul John have received praise in global tasting competitions. These brands have small but growing followings abroad, especially in cities like London and Glasgow.

According to Rajeev Kale, who manages exports for Amrut Distilleries, “We have always believed that Indian spirits can compete globally. The main issue was the tariff wall. This agreement lowers the wall. Now it is up to the product to speak for itself.”

With easier export terms, Indian brands may also partner with British distributors and retailers. Some distilleries are exploring collaborations for barrel ageing, labelling, or marketing. Producers from Goa, Himachal Pradesh, and Karnataka are especially keen to enter new markets. The deal may also help newer brands, including those experimenting with millet-based spirits or ageing in Indian wine casks.

Also read: Top Imported Scotch Whisky Brands In India To Enhance Your Collection

Industry Reactions And Strategy

The spirits trade, both in India and the UK, has responded with cautious optimism. For global producers, the deal confirms that India remains a priority market. For Indian companies, the removal of some restrictions means new ways to grow internationally.

At the same time, not all producers are rushing to scale up. Some domestic brands are concerned about how increased access for Scotch could affect their market share. However, others see this as a chance to improve product quality and invest in branding. The government has suggested that this deal could also open the door for technical exchange, such as training in distilling methods and environmental sustainability in alcohol production.

Several Indian producers have already started adjusting their packaging and export labels to meet UK compliance standards. Small distilleries that have received investment from global firms may be among the first to enter shelves in British supermarkets.