A big drop in the prices of premium British whiskey brands may soon be seen in India in the coming days. The main reason for this is the visit of British Prime Minister Keir Starmer to India to finalize the trade agreement between India and Britain, in which special attention is being given to British-made whiskey.

In fact, India is the largest consumer of Scotch and whiskey in the world in terms of quantity. British whiskey brands like Chivas Regal, Ballantine, The Glenlivet, Glenfiddich and Johnnie Walker are in great demand in the Indian market. In such a situation, the huge demand for Scotch whiskey in India has been driven by the rapidly growing middle class and changing tastes towards luxury imported products.

During Prime Minister Narendra Modi’s visit to London in July this year, the Comprehensive Economic and Trade Agreement (CETA) was signed between India and Britain, which promises to make expensive liquor cheaper. This agreement will not only affect foreign brands, but the prices of IMFL (India-Made Foreign Liquor) brands sold in the Indian market will also come down.

After three years of talks, India-UK After CETA signature on

This trade agreement between India and Britain comes after three years of difficult negotiations, which were further intensified by circumstances like US President Donald Trump’s tariff tension. At present, British Prime Minister Keir Starmer is on a tour of India. Along with him have also come members of the Scotch Whiskey Association and executives of big companies like Diageo, the manufacturer of Johnnie Walker. The purpose of this visit of the British Prime Minister to India is to strengthen India-UK relations in trade, fintech, defense and other areas. However, the liquor sector is garnering the most headlines in this agreement, in which the agreement regarding Scotch whiskey is being seen as a big success.

Annual sale of whiskey in India can reach one billion dollars

According to Downing Street estimates, annual sales of Scotch whiskey in India could reach $1 billion. This will create more than 1000 new jobs in Scotland, benefit the UK economy by 190 million pounds every year and bilateral trade between the two countries could increase to 25.5 billion pounds ($34 billion) by 2024. With this step, consumers in India will be able to get premium whiskey at affordable rates.

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India-uk free trade deal: After India’s free trade final with Britain, the tariff on the import of Scotch whiskey will be reduced to half i.e. 75 percent. Despite this, the prices of Brands of Brands like Glenalivate, Black Label, Glenmorengi and Chivas Regal will not be lower yet. These changes will be applicable only after being passed in the British Parliament.

How much will prices be reduced?

According to the Times of India report, officials associated with the industry say that even the prices will be reduced, it will be within the scope of 8-10 percent because the import duty in Scotch’s cousin is only 15-20 percent. The agreement by the British Parliament is expected to be passed by next year. Only after approval, the tariff on imports will be reduced to 75 percent and in the next ten years it will be reduced by 40 percent.

Liquor companies welcomed the deal

Giants making alcohol like Diazio have also welcomed this decision. With this, alcohol making companies in India are also happy, who use Scottish Spirit to mix in their local brands.

Praveen Someshwar, MD and CEO of Diazio India, said, “We appreciate the India and the British Government to formalize this deal. This will promote bilateral trading and positive impact on the availability of premium scotch whiskey in India, which will promote development and increase options for Indian consumers. ‘

Sanjeet Padhi, CEO of International Spirits and Wines Association of India (ISWAI), said that the deal will get more balanced and equal business atmosphere than before. This is because there is no charge on the export of Britain’s liquor from India.

However, people associated with the industry say that prices will not be less than 10 percent. An official said, the stake of custom duty in MRP’s overall structure barely sits 15-20 percent. The rest includes tax and distribution margin imposed by the state government, so only 8-10 percent will be reduced.

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