Scotch connoisseurs in India are set to benefit as global alcoholic beverage majors plan to pass on savings from reduced import duties under the India-UK Free Trade Agreement (FTA). Announced earlier this month, the FTA will see India cut duties on UK whisky and gin from 150 per cent to 75 per cent, and further to 40 per cent by the tenth year.

Pernod Ricard India (PRI), which has brands like Chivas Regal, Glenlivet, and Ballantine’s under its fold, hailed the FTA as a positive move for both consumers and the industry.

A PRI spokesperson said it would enhance access to premium Scotch by making them more competitively priced. The reduced duties on Bottled-in-Origin products are expected to lower prices across most states, with minimal impact on the pricing of India Made Foreign Liquor (IMFL), which are more affordable.

According to PRI, while the FTA will lead to price reductions for imported Scotch, it will not affect IMFL sales due to the wide price gap.

United Spirits, part of UK-based Diageo, echoed this sentiment. MD Praveen Someshwar said the company anticipates a “high single-digit” reduction in consumer prices for imported liquor. He said Diageo intends to pass on the benefit to consumers.

Meanwhile, domestic premium whisky distillers see the FTA as a boost to margins and growth. A lower customs duty on bulk Scotch, commonly used by IMFL companies for blending, will cut costs and help make premium spirits more affordable. Radico Khaitan MD Abhishek Khaitan said the company plans to import Scotch malt worth ₹250 crore in 2025-26.