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India Halves Tariffs on Scotch and Gin as FTA Eliminates Levies on Indian Spirits Exports

British distillers hail the expanded market access; Indian producers call for dumping safeguards and a review of UK maturation rules

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Overview

  • After domestic ratification on July 25, India cut duties on UK Scotch and gin imports from 150% to 75%, with further reductions to 40% over the next decade
  • UK tariffs on Indian beverages, spirits and vinegar have been removed, granting Indian exporters duty-free access to Britain
  • The Confederation of Indian Alcoholic Beverage Companies and domestic distillers have petitioned for minimum import price rules and are challenging UK three-year maturation and labeling standards as discriminatory non-tariff barriers
  • Chivas Brothers and Diageo executives welcomed the FTA, citing prospects for expanded sales and long-term investment in both India and Scotland
  • Industry analysts warn that high state-level excise duties in India will likely limit consumer price cuts for imported spirits to around 8–10% despite the tariff reductions