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