Latest news with #ISWAI
&w=3840&q=100)
First Post
7 days ago
- Business
- First Post
India-UK FTA makes Scotch cheaper. India and its love affair with whisky
It's time for Indians to raise a toast. The signing of the India-UK FTA on Thursday (July 24) will see tariffs on Scotch whisky reduced at the first stage to 75 per cent from 150 per cent, followed by a progressive reduction to 40 per cent over the next decade. This, in turn, will help reduce the cost of these alcoholic spirits read more Hic, hic, hooray! On Thursday (July 24), India and the United Kingdom finally signed the much-awaited Free Trade Agreement (FTA) after three years of intense negotiations and deliberations. As PMs — Narendra Modi and Keir Starmer — signed on the dotted line, the UK government announced that the new trade pact will likely boost annual bilateral trade between India and the UK by £25.5 billion. The India-UK FTA will see a reduction in tariffs on several British products, including items such as chocolates, Scotch whisky, luxury cars, cosmetics, chocolates, biscuits, lamb, salmon, soft drinks, and medical devices. STORY CONTINUES BELOW THIS AD But how much cheaper will Scotch whisky and gin become as a result of the trade deal? We examine the impact of it. Reduced tariffs on Scotch whisky and gin The newly-signed India-UK FTA reduces the import duties on Scotch whisky and gin. Under the FTA, the Total Customs Duty on imported alcoholic spirits, limited to whisky and gin from the UK, will be halved at the first stage to 75 per cent from 150 per cent, followed by a progressive reduction to 40 per cent over the next decade. This new tariff structure will apply to both Bottled-in-Origin (BIO) and bulk imports used for making Bottled in India (BII) products, as well as blending with Indian Made Foreign Liquor (IMFL). Shortly after the signing of the FTA, the International Spirits and Wines Association of India (ISWAI), the apex body representing premium alcoholic beverage companies in India, welcomed the move, calling it a historic moment. The ISWAI said that for the alcobev sector, this agreement paves the way for a more balanced and equitable trade environment, particularly given that Indian alcohol exports to the UK have zero import duties. 'The deal will significantly benefit Indian consumers, as premium international spirits will become more accessible, thereby accelerating the ongoing trend of premiumisation. It will also stimulate growth across ancillary sectors such as hospitality, tourism, and retail, while potentially increasing revenue for Indian states,' said Sanjit Padhi, CEO, ISWAI. Other industry executives also welcomed the move. Diageo India MD and CEO Praveen Someshwar said, 'We laud the Indian and British governments for formalising this historic treaty, which will boost bilateral trade and positively impact the accessibility of premium Scotch whisky in India, reigniting growth and increased choice for Indian consumers.' STORY CONTINUES BELOW THIS AD Chivas Brothers Chairman and CEO Jean-Etienne Gourgues also termed the India-UK FTA as 'a sign of hope in challenging times for the spirits industry'. Even Onkar Sharma, a partner at Khaitan & Co agreed with this, telling Moneycontrol, 'This tariff reduction is expected to make premium UK brands more affordable in India, boosting their market share and benefiting companies like Diageo and Chivas Brothers while enhancing consumer choice and potentially increasing state revenues through premiumisation.' Raising a toast to lowered prices As a result of the FTA and reduced tariffs, the price of Scotch whisky brands in India is expected to fall — depending on the Indian states' excise and pricing policies. Most news reports state that in the premium segment, the cost of brands such as Johnnie Walker Black Label and Chivas Regal will fall by Rs 200-300 per bottle. Currently, the price of a Johnnie Walker Black Label (750 ml) costs around Rs 3,100 in Delhi and Rs 4,200 in Mumbai. In the standard segment, brands like Red Label and Ballantine's may cost less by Rs 100-150. The cost of whisky brands such as Chivas Regal in India will most likely be reduced by Rs 200-300 as a result of the India-UK FTA. File image/Reuters Industry experts noted that the biggest winner from the India-UK FTA won't be the end consumer, but the companies. Liquor industry expert Vinod Giri explained to PTI, 'Consumer prices for imported Scotch (whiskey) are not likely to change much. 'Most of the taxes on alcohol sit in states, and 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.' STORY CONTINUES BELOW THIS AD He further highlighted, 'Stripped off all the noise, all the UK-India FTA will do for the whisky industry is help the bottom lines of companies. Consumers should not expect many changes. FTA will neither dramatically change the Indian whisky market nor open new vistas for Indian producers.' India's Scotch whisky consumption India has long been a consumer of alcohol with whisky consumption exploding by more than 200 per cent in the past decade. Last year, India was ranked as the world's number one Scotch whisky market by volume, according to the Scotch Whisky Association data. It regained its position after replacing France, with 192 million bottles exported in 2024, the association said. Other experts also note that whisky is among India's favourite spirits — it accounted for over 60 per cent of India's alcohol consumption last year, according to a report by The Times of India and The Hindu Business Line. In fact, a Moneycontrol report stated that within the first six months of 2024, India's whisky exports had increased 26 per cent to $78.5 million. Out of this, blended whisky, which accounts for half of the total exports, jumped 37 per cent, and premium whisky exports almost doubled to $6.3 million. Scotch whisky is one of India's most preferred alcoholic drinks. It accounted for over 60 per cent of India's alcohol consumption last year. File image/Reuters Moreover, the whisky market in India that was estimated to be worth $21.13 billion in 2023 is expected to grow at a compound annual growth rate (CAGR) of 4.61 per cent between 2024 and 2030, reaching a value of $28.97 billion by 2030. STORY CONTINUES BELOW THIS AD However, it's interesting to note that India's introduction to whisky wasn't all that smooth. As the British colonised India, it brought in its favourite, the whisky. But they came up against an obstacle in the form of Indians, who argued that they had their own local drinks. Owing to this, the British Raj established a commission to study scotch whisky in an attempt to prove to India that it was worth drinking. On completion of their studies, found out that scotch was harmless of outstanding quality, making it a perfect drink for social occasions. Scotch whisky entered India then, and has become a sign of taste and culture ever since. It became the drink that Indians brought in for social gatherings or used to toast during a particularly special celebration. At first, it was associated with the British and the Indian elite and the royalty. However, as time passed, whisky became more accessible to Indians, and as they say, the rest is history. STORY CONTINUES BELOW THIS AD With inputs from agencies
Hindustan Times
7 days ago
- Business
- Hindustan Times
How much cheaper will whiskey be after India-UK FTA? What experts said
The India-United Kingdom free trade agreement is expected to lower import duties on spirits, potentially making premium international liquor brands more affordable for Indian consumers. The International Spirits and Wines Association of India (ISWAI) hailed the trade deal as a historic moment for the alcoholic beverage sector.(Representational Image) However, experts have cautioned that the impact may be modest, with price reductions likely capped at around ₹300 per bottle. India and the UK signed a historic bilateral Free Trade Agreement (FTA) on Thursday. The pact will boost bilateral commerce by $35 billion in the long run. The India-UK FTA was finalised in May after more than three years of negotiations and was signed by commerce minister Piyush Goyal and his UK counterpart Jonathan Reynolds during Prime Minister Narendra Modi's visit to Britain. As per the FTA signed in London between the two governments, India is reducing duty on UK whisky and gin from 150 per cent to 75 per cent and further to 40 per cent in the 10th year of the deal. Also Read | India, Britain seal trade deal to bring down tariffs, barriers; keep dairy out "Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150 per cent to 75 per cent and then dropped even further to 40 per cent over the next ten years - giving the UK an advantage over international competitors in reaching the Indian market," as per an official statement of the UK government. What experts said The International Spirits and Wines Association of India (ISWAI), which represents premium alcoholic beverage companies in India (mostly MNCs), hailed the trade deal as a historic moment for the alcoholic beverage sector. 'The deal will significantly benefit Indian consumers, as premium international spirits will become more accessible, thereby accelerating the ongoing trend of premiumisation,' ISWAI CEO Sanjit Padhi was quoted as saying by PTI. "It will also stimulate growth across ancillary sectors, such as hospitality, tourism, and retail, while potentially increasing the revenue for Indian states." Also Read | Visa, employment, insurance: What will change for Indians in UK under trade deal Industry experts, however, opined that while companies could benefit end-consumers, there would be very few benefits in terms of price reduction. 'Consumer prices for imported Scotch (whiskey) are not likely to change much,' liquor industry expert Vinod Giri said, according to PTI. "Most of the taxes on alcohol sit in states, and even if all customs duty reduction is passed on, the impact on consumer prices of imported Scotch whiskies will be in the range of ₹100-300 per bottle," he added.
Time of India
24-07-2025
- Business
- Time of India
India-UK FTA: International premium spirits to be more accessible but benefits may be limited, say experts
The India-UK free trade agreement will reduce duties on imported spirits, making premium international options more accessible to Indian consumers, according to industry players, but experts cautioned that the benefits may be limited as the maximum price reduction could be only up to Rs 300 per bottle. As per the FTA signed in London between the two governments, India is reducing duty on UK whisky and gin from 150 per cent to 75 per cent and further to 40 per cent in the tenth year of the deal. Explore courses from Top Institutes in Please select course: Select a Course Category Public Policy Data Science Technology Digital Marketing Data Analytics CXO Project Management PGDM healthcare Design Thinking Data Science Finance Others Cybersecurity Product Management Leadership MBA Management Healthcare Artificial Intelligence others MCA Skills you'll gain: Economics for Public Policy Making Quantitative Techniques Public & Project Finance Law, Health & Urban Development Policy Duration: 12 Months IIM Kozhikode Professional Certificate Programme in Public Policy Management Starts on Mar 3, 2024 Get Details Skills you'll gain: Duration: 12 Months IIM Calcutta Executive Programme in Public Policy and Management Starts on undefined Get Details "Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150 per cent to 75 per cent and then dropped even further to 40 per cent over the next ten years - giving the UK an advantage over international competitors in reaching the Indian market," as per an official statement of the UK government. Reacting to the development, the International Spirits and Wines Association of India (ISWAI), which represents premium alcoholic beverage companies in India (mostly MNCs), hailed it as a historic moment for the alcobev sector and paves the way for a more balanced and equitable trade environment. "The deal will significantly benefit Indian consumers, as premium international spirits will become more accessible, thereby accelerating the ongoing trend of premiumisation. It will also stimulate growth across ancillary sectors, such as hospitality, tourism, and retail, while potentially increasing the revenue for Indian states," ISWAI CEO Sanjit Padhi said. Live Events Diageo India MD and CEO Praveen Someshwar said: "We laud the Indian and British governments for formalising this historic treaty, which will boost bilateral trade and positively impact the accessibility of premium Scotch whisky in India, reigniting growth and increased choice for Indian consumers". Chivas Brothers Chairman and CEO Jean-Etienne Gourgues termed the India-UK FTA as "a sign of hope in challenging times for the spirits industry". "India is the world's biggest whisky market by volume, and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine's," Gourgues noted. Industry experts, however, opined that while companies could benefit end-consumers, there would be very few benefits in terms of price reduction. "Consumer prices for imported Scotch (whiskey) are not likely to change much. Most of the taxes on alcohol sit in states, and 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," liquor industry expert Vinod Giri said. Since price segments in whisky are currently too wide, this much reduction is not going to win any new consumers, and hence companies are likely to instead pocket the savings, he added. Moreover, with the FTA in place, there is a likelihood that over the next few years, the bottled-in-India (BII) Scotch whiskies category, where Scotch is imported in bulk for bottling here using local packaging material, would be replaced by direct imports. Brands, including Black Dog, 100 Pipers, Passport, Vat 69 and Black & White, are imported in India and then bottled here to save tax. "With falling customs duty, the entire rationale of packaging locally to save duty goes away, and it would make more commercial sense for companies to produce in Scotland at lower cost and export to India rather than go through the hassle of setting up and running a bottling plant in India. Consumers may see a marginal drop in prices but not enough to affect most Indian whiskies," he said. Confederation of Indian Alcoholic Beverage Companies (CIABC), an industry body of IMFL manufacturers, said the lowering of import duty on Scotch will help the domestic industry, as it will help to reduce the cost of blended products, but expressed concern that over possible 'dumping of Scotch whiskey brands', which have been bottled in India before the FTA. "We hope that the government will ensure that Scotch whisky and other spirits (BIO - bottled in origin) are not dumped at low import prices or routed through any other country at cheaper rates, which would hurt the YOY growth of premium and luxury Indian brands," CIABC Director General Anant S Iyer said. He also suggested "imposition of a minimum import price (MIP) on BIO products" by the government to safeguard the domestic industry.
Mint
24-07-2025
- Business
- Mint
India-UK FTA promises firmer pour for scotch and gin
NEW DELHI : A landmark free trade agreement (FTA) signed between India and the UK is set to shake up the Indian alco-bev market, slashing steep import duties on whisky and gin and opening the doors wider for premium foreign spirits. Industry leaders say the move could accelerate premiumization, benefit both global and Indian liquor companies, and reshape consumer choices in the world's largest whisky market. Once the agreement comes into force, customs duty on imported whisky and gin from the UK will be halved from 150% to 75% immediately and then gradually reduced to 40% over the next decade. The revised duties will apply to both bottled-in-origin (BIO) and bulk imports. BIO spirits are entirely produced and bottled outside India before import, such as whisky made and packaged in the UK. Bulk imports, on the other hand, are used for making bottled-in-India (BII) products and for blending with Indian Made Foreign Liquor (IMFL). Anand Ramanathan, partner, consumer products and retail sector leader, Deloitte India, said that the tariff reduction will benefit UK-based Scotch brands the most. 'Given India's evolved whisky-drinking market, this will encourage both established players and new entrants to expand their global portfolio offerings here," he said. Also Read: India, UK sign landmark free trade agreement after years of negotiation Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), welcomed the development and said the FTA could become a trendsetter. 'For the alco-bev sector, the immediate tariff reduction on Scotch whisky and gin imports from 150% to 75%, and subsequent reduction to 40% over the decade, will open up and expand market opportunities for the industry," Padhi said, adding that the deal would benefit Indian consumers and accelerate the trend of premiumization. Why this matters for India India is one of the world's largest alco-bev markets, selling over 400 million cases of Indian alcoholic spirits annually, according to estimates from ISWAI. However, imported spirits—both BIO and BII—account for just 2.6% of that market. The imported category is dominated by whisky, with Scotch whisky accounting for approximately 81% of the overall 10.9 million cases of alcoholic spirits imported. According to Padhi, the duty reduction will also significantly benefit manufacturers in the IMFL industry, as 79% of the Scotch imported into the country comes in bulk form. Radico Khaitan Ltd, an importer of Scotch whisky in bulk for its own brands, anticipates significant cost advantages from the deal. 'We have estimated our scotch requirements valued at over ₹250 crore in FY26, and this treaty represents a substantial opportunity for value creation," said Abhishek Khaitan, the company's managing director. Khaitan added that the reduction in import duties will enhance consumer access to premium international spirits and also 'enable Indian companies to strengthen cross-border collaborations and accelerate premiumization in the domestic market". Also Read: India, UK set wide-ranging strategic course with Vision 2035 roadmap Radico Khaitan sells brands such as Jaisalmer gin, Magic Moments vodka, 8 PM Whisky, and Rampur Indian Single Malt Whisky. Potential for mutual growth ISWAI's Padhi said that as Indian single malts gain global recognition, improved market access can create mutual benefits, allowing Indian whiskies to expand their footprint abroad just as Scotch whiskies gain better accessibility in India. India is the world's largest spirits and whisky market, with 20 million people added annually above the legal drinking age. According to International Wine and Spirits Research (IWSR), India's alcohol market grew 9% by value in 2024, reaching just under $40 billion. The domestic alcohol market is expected to top $50 billion by 2031. Praveen Someshwar, managing director & CEO of Diageo India (United Spirits Ltd), the local arm of British spirits major Diageo Plc, lauded both governments, saying that it 'will boost bilateral trade and positively impact the accessibility of premium Scotch whisky in India, reigniting growth and increased choice for Indian consumers". Diageo India sells brands such as Johnnie Walker, Ketel One, Tanqueray, Captain Morgan, and McDowell's No1, with a portion of its portfolio made locally and another part imported. Contrarian voice Meanwhile, the Confederation of Indian Alcoholic Beverage Companies (CIABC) raised concerns that lower import duties on Scotch and other BIO spirits could lead to dumping of cheap foreign alcohol in India, hurting the growth of premium Indian brands. It has urged the government to monitor imports using technology, flag underpriced shipments, and impose a minimum import price to prevent unfair competition. CIABC also called on state governments to end concessions for imported brands, such as lower registration fees and excise duties, which make foreign products cheaper than Indian ones. Also Read: India-UK FTA: Experts are bullish on these stocks and sectors. Do you own any? 'The lack of reciprocal market access for Indian spirits in the UK and EU, saying non-tariff barriers continue to block Indian exports and could hamper the government's $1 billion export target for the Alcobev industry by 2030," said Anant S. Iyer, Director General, Confederation of Indian Alcoholic Beverage Companies (CIABC), in a statement. The deal Overall, the FTA is anticipated to significantly boost bilateral trade between India and the UK by an estimated $34 billion annually, and the two countries aim to take that to $120 billion by 2030. The agreement will see tariffs eliminated on nearly 99% of Indian exports to the UK, including textiles, pharmaceuticals, and gems and jewellery, while India will significantly reduce duties on products like whisky, electric vehicles, and cosmetics.
&w=3840&q=100)
Business Standard
24-07-2025
- Business
- Business Standard
India-UK FTA to cut spirit duties, but price drop may be limited: Experts
The India-UK free trade agreement will reduce duties on imported spirits, making premium international options more accessible to Indian consumers, according to industry players, but experts cautioned that the benefits may be limited as the maximum price reduction could be only up to ₹300 per bottle. As per the FTA signed in London between the two governments, India is reducing duty on UK whisky and gin from 150 per cent to 75 per cent and further to 40 per cent in the tenth year of the deal. "Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150 per cent to 75 per cent and then dropped even further to 40 per cent over the next ten years - giving the UK an advantage over international competitors in reaching the Indian market," as per an official statement of the UK government. Reacting to the development, the International Spirits and Wines Association of India (ISWAI), which represents premium alcoholic beverage companies in India (mostly MNCs), hailed it as a historic moment for the alcobev sector and paves the way for a more balanced and equitable trade environment. "The deal will significantly benefit Indian consumers, as premium international spirits will become more accessible, thereby accelerating the ongoing trend of premiumisation. It will also stimulate growth across ancillary sectors, such as hospitality, tourism, and retail, while potentially increasing the revenue for Indian states," ISWAI CEO Sanjit Padhi said. Diageo India MD and CEO Praveen Someshwar said: "We laud the Indian and British governments for formalising this historic treaty, which will boost bilateral trade and positively impact the accessibility of premium Scotch whisky in India, reigniting growth and increased choice for Indian consumers". Chivas Brothers Chairman and CEO Jean-Etienne Gourgues termed the India-UK FTA as "a sign of hope in challenging times for the spirits industry". "India is the world's biggest whisky market by volume, and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine's," Gourgues noted. Industry experts, however, opined that while companies could benefit end-consumers, there would be very few benefits in terms of price reduction. "Consumer prices for imported Scotch (whiskey) are not likely to change much. Most of the taxes on alcohol sit in states, and even if all customs duty reduction is passed on, the impact on consumer prices of imported Scotch whiskies will be in the range of ₹100-300 per bottle," liquor industry expert Vinod Giri said. Since price segments in whisky are currently too wide, this much reduction is not going to win any new consumers, and hence companies are likely to instead pocket the savings, he added. Moreover, with the FTA in place, there is a likelihood that over the next few years, the bottled-in-India (BII) Scotch whiskies category, where Scotch is imported in bulk for bottling here using local packaging material, would be replaced by direct imports. Brands, including Black Dog, 100 Pipers, Passport, Vat 69 and Black & White, are imported in India and then bottled here to save tax. "With falling customs duty, the entire rationale of packaging locally to save duty goes away, and it would make more commercial sense for companies to produce in Scotland at lower cost and export to India rather than go through the hassle of setting up and running a bottling plant in India. Consumers may see a marginal drop in prices but not enough to affect most Indian whiskies," he said. Confederation of Indian Alcoholic Beverage Companies (CIABC), an industry body of IMFL manufacturers, said the lowering of import duty on Scotch will help the domestic industry, as it will help to reduce the cost of blended products, but expressed concern that over possible 'dumping of Scotch whiskey brands', which have been bottled in India before the FTA. "We hope that the government will ensure that Scotch whisky and other spirits (BIO - bottled in origin) are not dumped at low import prices or routed through any other country at cheaper rates, which would hurt the YOY growth of premium and luxury Indian brands," CIABC Director General Anant S Iyer said. He also suggested "imposition of a minimum import price (MIP) on BIO products" by the government to safeguard the domestic industry.
