Scotch whisky is set to become more affordable in India after the UK-India Free Trade Agreement (FTA) came into force on July 15, 2026. Under the agreement, India has reduced the import duty on Scotch whisky from 150% to 75%, with the tariff scheduled to gradually fall to 40% over the next 10 years.
The tariff reduction is expected to lower the cost of imported Scotch and improve access to British whisky brands in the Indian market. However, the final retail price paid by consumers can still vary because state-level taxes, excise duties, distribution costs and retailer margins are separate from the import tariff.
The UK government said whisky and gin were among the key products benefiting from the trade agreement. India imported more than £200 million worth of whisky/whiskey from the UK in 2022, when the applicable tariff was 150%.
The agreement is part of a broader India-UK trade framework aimed at reducing tariffs and expanding bilateral trade. The UK government estimates the deal could increase bilateral trade by £25.5 billion annually in the long run.
