CIABC says hike will disrupt the market, erode competitiveness of national brands
May lead to dumping from neighbouring States
The Maharashtra cabinet, chaired by Chief Minister Devendra Fadnavis, on June 10 approved the Excise Department’s proposal to increase duties on Indian Made Foreign Liquor (IMFL), country liquor and also premium liquor brands. The hike in excise duties is expected to boost the coffers of the state government by about Rs. 14,000 crore.
As per the announcement, the excise duty on IMFL (with a declared production cost up to ₹260 per bulk litre) from 3% to 4.5% of the production cost. The excise duty on country liquor will go up from Rs.180 to Rs. 205 per proof litre. The premium foreign liquor brands have seen the most hike, with a new rate set to bring the minimum retail price to Rs 360.
The Cabinet also approved the department’s proposal to introduce a category ‘Maharashtra Made Liquor’ (MML) to include grain-based spirits produced by local manufacturers. The idea behind this proposal, it said, was to encourage local manufacturing. The MML manufacturers are required to register their brands under the ‘MML’ category.
The excise department had formed a high-level study group which toured other states to understand the excise policies, the distillery operations, distribution etc and recommend the best for Maharashtra. Going by the recommendations, the department has also approved the creation of an integrated control unit powered by Artificial Intelligence (AI) to monitor distilleries, liquor manufacturers, and wholesale vendors. Additionally, a restructured administrative framework for the department has been sanctioned, which includes the offices of the Additional Superintendent for Mumbai Suburban, Thane, Pune, Nashik, Nagpur, and Ahilyanagar districts.
The Chief Minister’s office said “These reforms are a result of an extensive review of excise policies in other states which focused on tax structures, licensing efficiency, and measures to combat evasion. The objective of the new policy is not only to boost state revenue but also to curb illicit trade and foster a more transparent and regulated liquor market across Maharashtra.”
Revised minimum retail prices
The state government has issued the revised minimum retail prices for 180 ml bottles.
The Cabinet has also approved reforms in liquor licensing:
Sealed Foreign Liquor Sale Licenses (FL-2) and Hotel/Restaurant Licenses (FL-3) can now be operated on a lease basis (Conducting Agreement)
An additional annual fee of 15% for FL-2 and 10% for FL-3 licenses will be charged
To support these changes and ensure effective implementation, the Cabinet has sanctioned the creation of 1,223 new posts, including 744 new positions and 479 supervisory roles in the State Excise Department.
These comprehensive reforms are part of the government’s broader strategy to strengthen the department and increase revenue through systematic regulation of the liquor trade.
It must be mentioned that the state is facing a financial crunch due to the implementation of many welfare schemes particularly the ‘Ladli Bahin Yojana’ which pays eligible women Rs. 1,500 per month.
The state government is expected to table the relevant bill during the upcoming session of the state legislature.
Presently, it is said that Karnataka levies the highest liquor taxes in the country, with an 83 per cent cess on the actual price. In addition, the state government introduced a 5 per cent additional excise duty on certain products last month. As a result, Bengaluru has become the most expensive metro city for alcohol in India.
In neighbouring Telangana, the state government in May issued an order raising the retail price of select liquor brands by ₹10 for a quarter bottle (180 ml), ₹20 for a half bottle (360 ml), and ₹40 for a full bottle (750 ml).
Almost all the states, barring those having prohibition, treat the liquor industry as the cash cow and keep raising taxes as and when the government is in need of funds.
CIABC Opposes Steep Increase in Excise Duty on IMFL
Expressing grave concern over steep increase in Excise Duty on IMFL by up to 50% by the Maharashtra Government, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has urged the state government to rethink and reconsider such a huge hike as it could trigger serious consequences. The CIABC has urged the state government to immediately hold deliberations with all stakeholders “to arrive at a balanced, data-driven, and sustainable course of action that protects both revenue interests and the long-term viability of the IMFL sector in Maharashtra”.
Stating that the CIABC has already written to the Maharashtra government urging to start a consultative process with all stakeholders before releasing any final gazette notification, Mr Anant S Iyer, Director General of the apex body of the Indian Alcoholic Beverage Industry, underlined that this steep hike in excise is projected to push Maximum Retail Prices (MRPs) up by as much as 85%, a step that could severely disrupt the market, erode the competitiveness of national brands, and jeopardize the availability of legitimate alcoholic beverages in Maharashtra.
“Such an unprecedented escalation in duties poses a serious deterrence to consumer access of established and reputed brands, compelling a shift toward lower-category products. This poses a serious threat to the stability of the IMFL industry in the State…such a move will have a far-reaching adverse impact,” Mr Iyer said in a statement.
The hike, he said, would lead to a steep and abrupt increase in MRPs (maximum retail price), destabililsing consumer accessibility and purchasing power, particularly within the mass-market segment which caters to the common man. This will lead to a significant drop in legal sales volumes, overlooking the interest of industry and its substantial investment in the state. It will also endanger the employment of people engaged in the entire value chain from farm to consumer.
Mr Iyer warned that higher MRPs often create a vacuum filled by illegal operators. Past experiences show that pricing arbitrage fosters regional imbalances, encouraging the spread of illicit and unsafe liquor and counterfeits of popular brands—posing a major public health risk and leading to further revenue leakage.
Porous Borders, may lead to Dumping
Noting that this move will also result in increased stock dumping from neighbouring states, the CIABC DG said Maharashtra shares borders with states that are porous. These states have similar brands which have lower MRPs for IMFL. Any additional price escalation will trigger large-scale dumping (exfiltration) from these states, resulting in illicit inflows that damage legitimate trade and erode the State’s tax base. Maharashtra has always ensured minimal impact of such occurrences by ensuring competitive pricing vide neighbouring states till now.
Mr Iyer further said the retail price structure must align with consumer affordability. The proposed price increase risks shifting consumers toward lower-tax categories, undermining premium and mid-tier segments. Such behavioural shifts could dilute revenue contributions from higher-margin IMFL products.
IMFL Accounts for 60% of Excise Revenue
The IMFL industry contributes approximately 60% of the total Excise Revenue of the State. Furthermore, the Excise Duty collected from a single case of IMFL is equivalent to that from four cases of beer, underscoring the critical importance of this category. Duty increase on IMFL, without corresponding changes for a category such as beer will create an uneven playing field and distort category dynamics leading to possible adverse impact on revenue. The CIABC has highlighted to the Maharashtra government that while the intent behind the proposed hike may be to enhance revenue collections by Rs.14,000 crore, the actual outcome may be contrary- driven by declining sales, rising illicit trade, and border leakages. The long-term impact could be deeply detrimental, not only for industry and employment, but also for public safety and overall state revenues.
In a thrilling final of the Indian Premier League (IPL) 2025, Royal Challengers Bangalore (RCB) nudged past Punjab Kings to lift the IPL trophy, after a long wait of 18 years. The much-awaited win on June 3 saw widespread celebrations across Karnataka, cheering the team ‘spiritedly’.
Besdies RCB, the winner was, of course, the alcobev industry. Karnataka collected a huge sum of ₹157.94 crore from liquor sales on that single day.
According to reports, 1.48 lakh boxes of bottled beer were sold, generating a turnover of ₹30.66 crore. This is a substantial increase from the same date last year when only 0.36 lakh boxes were sold, resulting in ₹6.29 crore in revenue. Sales of other alcoholic spirits reached 1.28 lakh boxes, valued at ₹127.88 crore. In contrast, on June 3 last year, the revenue from liquor sales was only ₹19.41 crore.
With RCB having reached the IPL final for the fourth time, there was an air of anticipation that RCB would pull off the win which was to be special for several reasons – it was the 18th IPL edition and Virat Kohli, the India and RCB icon, dons jersey number 18. Anyone and everyone got drawn into watching the game in their own style, with drinks or otherwise.
11 RCB-Flavour Shots
Celebrations across Karnataka began early on June 3 with offers galore at pubs, restaurants, clubs etc. With huge screens televising the event live, there was so much euphoria and the pubs and restaurants played to the gallery.
One of Asia’s largest microbrewery, BYG brewski in Hennur put up a “larger than life” stadium-like experience with live streaming supported by surround speakers. Like the twists and turns in the match, the brewery offered cocktails that resonated with the RCB campaign and campaigners.
At Jollygunj in J P Nagar the fans got to taste 11 different shots, a tribute to the 11 RCB players and their distinct personalities. For Phil Salt it was spicy flavours, for Virat Kohli it was Vanilla flavour and such like, adding to the zing of the evening, even as the game progressed in a ding-dong manner.
SOCIAL, owned by Impresario Entertainment and Hospitality, live=streamed the match across its Bengaluru outlets, throwing several enticing offers. There were 1+1 offer on beer buckets of all brands.
The best campaign was by a new pub called 404 by ToF in Tavarekere which offered free shooters and an extra free beer at the bar counter if a player scored ‘4,0,4’. The pub also offered two new flavours of Geist beer, adding to the excitement of the evening.
The Yard at Doddanekundi offered one beer free for every three beers. It also had unlimited beers from the first ball to the last of an innings for just ₹1,999 per person. The menu at the Yard was quirky from Punjabi Butter Chicken Fries and Rajasthan Royal Rajma to RCB Battered Prawns, Delhi Wale Tom Uncle’s Maggi, and the cheeky Overseas Players and so on.
Virat Kohli’s restobar One8.Commune was packed in all the eight cities – Bengaluru, Mumbai, Pune, Delhi, Gurgaon, Jaipur, Indore, and Kolkata – it is present in, cheering its owner who scored a decent knock in the final.
As the home of the Royal Challengers Bangalore, RCB Bar & Café was again in the centre-stage of celebrations with exciting offers. RCB Bar & Café is not just an establishment that is for watching sporting events in a cool and cozy place, but is surely a one-of-a-kind experience that celebrates the spirit of the sport alongside exceptional cuisine and mixology. It was chock-a-block with frenzied fans cheering the RCB team.
Piccadily Agro Industries Limited has relaunched Whistler Barrel Aged Blended Malt Whisky, featuring new packaging and premium blend.
Piccadily said that Whistler’s new avatar is a celebration of barrel ageing, maturation and the art of blending. The finest matured malt and grain spirits have been handpicked and aged in oak wood barrels, creating a whisky that’s smoother, more elegant and even more memorable than before, it said. Inspired by the Whistler Warbler, a vibrant songbird native to the region of Indri, the packaging reflects the whisky’s premium ethos with a modern and sophisticated design.
The relaunched Whistler expression offers a more layered and complex drinking experience—crafted for today’s evolving palate, yet grounded in traditional whisky-making excellence.
Tasting Notes:
Nose: Warm and inviting, with dried apple and apricot at the forefront. Vanilla cream and caramelised malt add delicate sweetness, complemented by toasted oak, cinnamon, and floral hints.
Palate: Silky and well-rounded with a rich malt core. Notes of toffee, pineapple, and vanilla glide through the sip, underscored by gentle spice and warmth.
Finish: Medium to long, leaving a graceful trail of mellow sweetness and soft refinement.
Whistler Whisky (750 ml / 42.8% ABV) will be available across premium retail outlets and on-trade venues across India, with plans for export expansion in the coming months, the company said.
“Whistler’s new premium look is more than a brand refresh — it’s a strategic play to capture the next wave of premium whisky consumers,” said Praveen Malviya, CEO – IMFL, Piccadily Agro Industries Limited. “With its elevated blend and bold new identity, Whistler is poised to disrupt the mid-premium segment. Our goal is ambitious — 1 million cases in the next three years — and we’re confident Whistler will become a powerhouse brand that redefines what Indian blended malts can achieve.”
You know a city’s serious about food when you go back eight times for it. And while Jaipur’s kachoris are definitely part of the pull, I also return for the block prints, the bazaars, and the city’s old-world charm. But this time, the agenda wasn’t the usual street food chase or Anokhi haul. I was there for one reason: to finally eat at Primitive, Jaipur’s new fire-obsessed, flavour-forward restaurant that’s already turning heads.
Tucked inside Hotel Pearl Palace, Primitive is a design-heavy space that makes you pause and look up. The interiors draw from ancient Indian aesthetics without being literal; carved walls, dramatic lighting, and textured surfaces give it the vibe of a contemporary cave palace. There’s even a Sheesh Mahal-inspired room with shimmering thikri work that almost steals the spotlight from your cocktail. The space is divided into five distinct sections, including a tasting room and terrace bar, each designed with intricate craftsmanship and moody elegance. The entire experience—visual and culinary—is crafted by Karan Singh Wallia and Simran Kaur Wallia, the husband-wife duo behind this venture and the popular Native Cocktail Room.
Smokey bites, spirited sips, and sweet finales
The food here doesn’t come with frills; it comes with flames. The kitchen is led by Chef Mohib Farooqui, and there’s no gas in sight; just woodfire, coal or ember driving the cooking. The result? Familiar flavours, reimagined with creativity.
Shakarkand ‘Do’ Pyaza arrived with roasted sweet potato and onions done two ways. Sweet, smokey, and smartly balanced. The Butte ke Kees, layered with jeeravan spice, corn broth and smoked ghee powder, was homely comfort elevated to fine dining. Beetroot and Walnut Khatai had a mild kick and crunch from the biscuit; simple, bold and plated like art.
Among the non-vegetarian picks, the Prawn Patio stood out. Grilled, saucy, and finished with salli; one of those dishes that disappears before conversation can resume. Primitive Pepper Chicken was another hit: coal-roasted, glazed with tamarind and pepper, topped with garlic chips. The Junglee Murgh, slightly wilder in flavour, came with glossy skin, Mathania chili emulsion and a garlicky yoghurt dip that I now want bottled.
Even the vegetarian mains were confident. Bharelu Bhindi was stuffed, saucy, and felt more indulgent than I expected. Amrood ki Kadhi sounded quirky, but the mix of charred guava and kadhi turned out to be quietly brilliant.
The drinks deserve their own fanbase. Calicut was a dessert in a glass…coffee and coconut over whisky and peach caramel, complete with trivia on Kerala’s coconut heritage. East IndiaCompany was punchy and nostalgic, with smoky whisky, oat milk and dark rum playing surprisingly well together. Masala Chai Old Fashioned brought bourbon and spice together with ease and had me rethinking my usual post-dinner tea.
I couldn’t skip dessert, of course. Gajar ka Halwa came shaped like a carrot, smoked just enough, and topped with cardamom cream cheese frosting. The Primitive Mithai Board was like a candy box curated by someone who respects tradition but shops at a French pâtisserie. Think kaju katli macaron, mosambi fruit gel, and a coffee-cardamom bonbon, among others. And yes, I also tried the Haldi Doodh Ice Cream. Fermented turmeric, pepper milk foam, milk crumble; it was strange, but in a good way.
Verdict
Primitive doesn’t shout innovation. It simmers, chars, and grills its way into your memory. The techniques may be old, but the imagination is fresh. If you’re in Jaipur and looking to try something new without straying too far from the familiar, this is where you should head, well, with an open mind and an empty stomach.
India’s alcoholic beverage sector is the world’s third largest. Despite a lack of uniformity in state excise rates, state-specific regulations, and limited opportunities for the marketing of alcoholic beverages, the sector continues to record significant growth.
The alcoholic beverage industry is one largest processed beverage industries in the world. Globally, the alcohol market is valued at 2.4 trillion dollars. In India, the alcohol industry was valued to be at 55.84 billion dollars in 2024. The Indian alcoholic industry is one of the fastest growing and most diverse alcoholic beverages market globally. The sector has a high-growth potential given favourable demographics and increasing social acceptance.
Alcoholic Beverages industry (Alcobev) is a portmanteau for a large variety of alcoholic drinks. These drinks are categorised into Beer, Wine and Other Spirits. They are generated from variety of sources such as corn, wheat, grapes, molasses, and other agricultural products. The Alcobev Industry directly supports the agriculture and food processing industry in India. In India, alcohol consumption stood at 4.9 litres per capita with male alcohol consumption at 8.1 litres per capita. 18.8% of men and 1.3% of women in India consume alcohol.
India has one of the youngest populations globally. The total population of India is estimated at 1.43 billion for 2025. The median age in India is estimated to be 28.2 years in 2023 and is expected to remain under 30 years until 2030.
Regular
The population pyramid of India is bottom heavy with growing working age population and low dependence ratio. This trend is expected to lead to rising income levels per household as well as higher levels of discretionary expenditure.
The Indian middle class constitutes 31% of the population and is expected to be 38% by 2031 and 60% in 2047. Households with annual earnings between USD 5,000-10,000 grew at a pace of 10% between 2012 and 2020. These households are leading to an increase in discretionary spending on food and beverages, including alcoholic beverages, apparel and accessories, luxury products, consumer durables, and across other discretionary categories.
Women Participation: Increasing education, workforce participation, and urbanisation is leading to a change in the socio-economic status of women in society.
This increase of women in the workforce has resulted in a shift of patterns in terms of household activity, an increase in incidence of eating out coupled with entertainment which may lead to higher acceptability of women consuming alcohol.
Semi Premium
Young consumers are better educated, more tech savvy, well informed, and willing to try new products. Alcobev manufacturers are focussing on craft premium spirits at higher price points to capitalise on margins, while premium brands also tend to command greater loyalty among consumers.
The proportion of people who drink alcohol varies considerably low in a global context. This raises the expectation of significant growth potential in per capita consumption, especially as the acceptance of alcohol is spreading. A major consumer base that has emerged over the past five years is the rising acceptance of drinking amongst women.
The Indian alcobev industry is segmented majorly into Indian Made Foreign Liquor (IMFL) and Indian Made Indian Liquor (IMIL). Based on the type of products, Alcobev is classified as Beer, Whiskey, Wine, Rum, Brandy, Vodka, and other alcohols. The two segments of IMFL and country liquor cater to different sections of society. Country Liquor caters to the low-income groups in rural areas while IMFL caters to the middle-and high-income groups in both urban and rural areas.
Beer, a popular alcoholic beverage made from water, malted barley, yeast, and hops. It contributes approximately 8% to the recorded consumption of pure alcohol in India. The beer market in India is evolving from manufacturing usual beer products such as strong-lager beers to flavoured beers owing to the adoption of foreign trends and technologies. Today, more than 140+ beer brands exist in the Indian beer market, which could address the palate of each customer segment. The per capita beer consumption in India is still very low compared to other countries in the Asia Pacific region, and therefore the market could witness rapid growth in the coming years.
Super Premium
Ranked on its own as a country, India would have a population of 140 million spread across 30 million households, and would be the 10th-largest country in the world. Its per capita income would stand at $15,000 (about ₹12.80 lakh).
This would place it at 63rd position on the list of countries by per capita income. For perspective, Oman, which is at 54 on the real list, has a per capita income of $20,000.
Premium
The Indus Valley Annual Report 2025, published by venture capital firm Blume Ventures, divides India into three categories: India 1, representing the wealthiest 10% of the population; India 2, representing the middle 23%; and 3, 67% the rest of India.
The “aspirant class”, consisting of about 23% of the population, would be made up of 70 million households and 300 million people, and would have a per capita income of $3,000 (about ₹2.55 lakh).
Country
India 3 would consist of 1 billion people across 205 million households, the entire “bottom” 67% of the economy. Per capita income here stands at $1,000 (about ₹85,000).
How badly do averages skew perception? In 2023, India’s average per capita income was placed at $2,500, or about ₹2.12 lakh.
Super Premium
Who are the wealthiest?
3.7% of the world’s HNI individuals are Indian citizens, according to the Knight Frank Wealth Report 2025, released in March. They define HNI as a net worth of $10 million or more. 85,698 Indians met this mark, according to the Knight Frank report.
India is third on the list of countries with the wealthiest billionaires. Indian billionaires collectively hold an estimated $950 billion in wealth, coming in immediately after the US ($5.7 trillion) and Mainland China ($1.34 trillion).
191 is the number of billionaires in India, as of 2025, according to the Knight Frank report. 26 of these billionaires joined the ranks over the financial year 2023-24 alone. A big jump from seven new billionaires in 2019.
Indian Alcoholic Industry Overview
The Indian alcoholic industry has a high growth potential due to favourable demographics and increasing social acceptance. The alcobev industry in India grew remarkably in recent years because of factors such as rapid urbanisation, evolving consumer priorities, a burgeoning middle-class population, greater purchasing power, and growing liking for premium alcoholic beverages.
Alcohol consumption has surged across geographies, as a growing number of consumers, both men and women, enter the target consumer class. The legal drinking age in India varies from 18 – 25 years, depending on the state, highlighting the enabling environment for the alcohol market’s robust growth.
The consumer landscape in India has traditionally been a pyramid, with many households from low incomes forming the base, and a small number of households with large incomes at top. Similarly, alcohol consumption forms a similar structure with lower brand consumption dominating the larger base while premium brand consumption dominating the upper base. With growth being fuelled by economic development and demographic dividend, the rising “middle class” is divided into groups each with distinct consumption drives and needs.
In India, the alcohol consumption is expected to increase. Alcohol consumption stood at 4.9 litres per capita, with male alcoholic consumption at 8.1 litres per capita and female alcohol consumption at a mere 1.6 litres per capita. Alcohol consumption is expected to increase to 5 litres per capita in 2025 and to 6 litres per capita by 2036.
India’s alcohol market is experiencing rapid growth, with a compound annual growth rate (CAGR) of 3.3% from 2022 to 2027, making it the fifth-largest market globally, according to IWSR.
The role of the alcoholic beverage industry in India’s economic landscape is expected to grow. Recognising its potential and addressing the existing hurdles will help spur economic growth. The Indian alcohol beverage market is the third largest in the world and is poised to become a key player in the global spirits industry, with products made in India rapidly gaining prominence internationally. Valued at US$ 59.8 billion in FY24, the sector contributes significantly to India’s economy, accounting for nearly 3% of the nation’s GDP. As India becomes a manufacturing hub, the alcoholic beverage sector will play a key role in this growth. Both global and local players view India as a thriving domestic market and a potential exporter, particularly for home grown single malts. This growing segment aligns closely with the “Make in India” initiative, showcasing India’s potential in premium spirits production.
Whisky dominates the Indian spirits industry by a wide margin. By consumption patterns, Telangana, Maharashtra, West Bengal, Odisha, Karnataka, Uttar Pradesh, and Punjab, are among the largest consumers of alcobev in India. Liquor stores serve as the predominant sales channel nationwide, especially since alcobev consumption and sales primarily occurs outdoors.
The Indian alcohol industry is in a nascent stage compared to the global liquor industry. The growing economy supports the sector through an interplay of demographics, urbanisation, and policy reforms.
Young Population:
In 2024, revenue in the alcoholic beer market in India is projected to reach USD 9.8 billion, and exports experience a value of 34 million in 2023. The market is expected to experience an annual growth rate of 6.89% (CAGR 2024-28).
Whisky market
India is the largest whisky market in the world, with almost one out of every second bottle of whisky sold in India. The Indian whisky market was projected to reach USD 17.4 billion in 2024 and was expected to reach USD 22.4 billion by FY 2025 by leveraging demographic trends, new customers and premiumisation. Indian whisky market can be divided into four segments including popular (up to ₹450), prestige (₹450-1000), premium (₹1000-2000) and luxury segments (More than ₹2200). The value segment, consisting of popular and prestige segments, contributed close to 86% of the total volume for the Indian whisky market.
The contribution of the premium and luxury segment by value is projected to reach around 34% of the overall whisky market by FY 2028 from 33% in FY 2023. However, its contribution by volume would still be close to 16% in FY 2028. The Whiskey industry is expected to grow annually at 5.3% (CAGR 2024-2028). The Indian whisky sector generates the highest revenue among all alcoholic beverages in India.
Wine Market
The consumption of wine in India constitutes a small share but is one of the emerging alcoholic beverage categories. Growing awareness, underpinned by income growth, westernisation and a changing profile of consumers, is driving growth in the wine category.
Domestic wine manufacturers have invested in both the upstream and downstream operations of value chain. To leverage the growing acceptance of wines in the premium and luxury segments in metro cities in India. Metro cities including Mumbai, Bangalore, Delhi-NCR, Hyderabad, and Pune are the major consumption centres for wines in India. The Indian wine market is a concentrated market with domestic players controlling the market and steadily increasing their prominence in the market.
The wine segment was valued at ₹2,660 crore, with the domestic wine industry constituting 73% of the market size in 2023. It is expected to grow to ₹6,425 crores in 2028, with the domestic wine industry constituting 77%. The wine market sold 3 million cases in 2023 and is expected to sell 3.9 million cases in 2025 (Provisional). It is expected to experience an annual growth rate of 14.57% (CAGR 2024-2028).
Rum market
Rum is made by fermenting and then distilling sugarcane molasses or sugarcane juice. It is available in dark rum and light rum. Dark rum is the more popular category with a share of ~98% followed by light rum. Dark rum differs from traditional rum due to the addition of caramel or by the maturation in oak containers. Canteen stores department or army canteens are the primary drivers of rum sales in India. Rum is also the preferred alcobev drink in the northern and eastern states of India.
The Rum segment was valued at ₹21,074 crores in 2023 and is expected to increase to ₹30,240 crores by 2028 (provisional). The sale of Rum, which stood at 51 million cases in 2023, is expected to increase to 68 million cases in 2028 (provisional). The sector is expected to grow at 5.65% (CAGR 2024-2028).
Brandy market
Brandy is a beverage made by distillation of wine. It may be aged or matured to possess aroma and taste of brandy. Indian blended brandy is a mixture of minimum 2% of pure grape brandy with any other fruit or flower brandy as recommended by the Indian Law. Indian brandies are permitted to use extra neutral alcohol (ENA) from other agricultural origin sources.
Indian Brandy market can be divided into four segments, including popular (up to ₹450), prestige (₹450-800), premium (₹800-1500) and luxury segments (More than ₹1500). Brandy consumption is price sensitive as most brandy brands are in the popular and prestige segment. There is a high degree of variation in the price structure of brandy in different states, with each having an independent cost structure with unique excise duties and other applicable taxes, which leads to varying prices from state to state.
In 2024, the revenue from the brandy market in India was estimated to reach USD 3.7 billion. The Brandy segment is projected to grow annually at 4.33% (CAGR 2024-2028).
Vodka market
Vodka is a clear distilled alcoholic beverage. It is made from a fermentable base which can be grains, potatoes, or other starchy or high-sugar plant matter. The vodka industry in India constitutes a small part of the overall alcoholic beverage industry, but is experiencing one of the highest growth rates among all the alcoholic industry. Magic Moment, a core Vodka brand in India recorded sales of 6.3 million cases during the year and crossed sales value of 1,000 crore.
The revenue of the vodka segment amounted to USD 37.8 million in 2024. It is projected to grow annually at 2.13% (CAGR 2024-2028).
India’s alcoholic beverage sector is the world’s third largest. Despite a lack of uniformity in state excise rates, state-specific regulations, and limited opportunities for the marketing of alcoholic beverages, the sector continues to record significant growth.
This is attested by the growth in sales, profit, along with projected capacity addition by alcobev companies. The alcoholic drinks sector will witness strong growth prospects in the alcoholic drinks sector over the years, driven by an improving macroeconomic growth, positive demographics, shifting cultural values, expanding young, middle class, rising sophisticated retail channel, a progressively more adventurous consumer base, and a burgeoning premiumisation trend.
The increasing focus on streamlining state excise policy, increasing support from the government, entry of international brands, effective promotion and branding by the companies, and improving the standards of alcoholic beverages available in India will provide further impetus to the growth of the alcobev industry in India. Concerted attempts to relax the cumbersome complex regulatory framework, simplify its operational complexities, enhance its Ease of Doing Business (EODB), and unlock its full growth potential will provide tailwinds to this industry. However, rising consumer inclination to consume non-alcoholic beverages may constrain market growth.
Asia Pacific Travel Retail Association (APTRA), APTRA India Conference highlights India as the industry’s most compelling long-term growth opportunity. Growth in APAC region on the rise.
The India travel retail market is anticipated to reach $6.67 billion by 2032, growing at a CAGR of 19.80% during the forecast period 2025-2032.
The India travel retail market is witnessing substantial growth, fuelled by a rise in both international and domestic tourism. According to the World Economic Forum’s Travel and Tourism Development Index (TTDI) 2024, India ranks 39th out of 119 countries, highlighting the nation’s increasing prominence in the global tourism sector. As international tourist arrivals (ITAs) continue to recover from the impact of the COVID-19 pandemic, India is poised to capitalise on this upward trend, particularly in the travel retail sector, as global tourism steadily rebounds.
According to the Public Information Bureau, India recorded 9.24 million foreign tourist arrivals (FTAs) in 2023, reflecting a 43.5% increase compared to 6.44 million in 2022. This growth is driving a rise in demand for travel retail products, especially at airports and transit hubs. The duty-free retail segment, which plays a key role in this market, is also benefitting from the surge in tourism. Duty-free shopping at airports provides travellers with the opportunity to purchase a wide range of international products, such as luxury goods, cosmetics, perfumes, and electronics, often at lower prices due to tax exemptions.
Consumer preferences in India’s travel retail sector are undergoing a notable shift. With evolving lifestyles and increased exposure to global trends, travellers now seek unique and high-quality products. This inclination towards exclusive offerings is reshaping the assortment of goods available in duty-free shops, airport boutiques, and hotel stores. As consumers prioritise experiences and value authenticity, there’s a growing demand for products that reflect their individuality and cater to their discerning tastes. This shift underscores the importance for retailers to adapt their offerings to align with changing consumer desires, thereby enhancing their competitiveness in the market.
The surge in disposable incomes, constituting close to 60% of the GDP, propels the growth of India Travel Retail Market. As consumers become more affluent and well-travelled, there’s a notable shift towards discretionary spending, especially on leisure and business travel. Additionally, a study by Oxford Economics forecasts New Delhi and Mumbai to emerge as the world’s largest consumer cities for middle-income households by 2030, further affirming India’s rising economic stature and its promising outlook for retail growth.
However high operating duty-free retail spaces in airports entails substantial costs. Despite generating significant revenue, these spaces require extensive maintenance and operational expenses. To address these high operating costs, duty-free operators are increasingly exploring innovative strategies, such as online pre-purchase orders to optimise efficiency and profitability.
Geopolitical tensions can have a multifaceted impact on the India Travel Retail Market. Uncertainty and security concerns deter international travellers, impacting duty-free sales at airports and other travel retail outlets. Reduced tourist influx affects revenue streams and disrupts supply chains, leading to decreased consumer confidence and spending. Additionally, fluctuations in currency exchange rates and trade restrictions further exacerbate the situation, hindering market growth. To mitigate these challenges, stakeholders must closely monitor geopolitical developments, implement robust security measures, and diversify market strategies to adapt to changing dynamics and sustain resilience in the face of geopolitical uncertainties.
Geographically, the India Travel Retail Market is divided into North India, South India, East India, and West India regions.
Major players operating in India Travel Retail Market include Ospree, Dufry, Delhi Duty Free Services Pvt Ltd, Lotte Duty Free, The Shilla Duty Free, Flemingo Travel Retail, Travel Food Services (TFS) India, Cochin Duty Free, Hyderabad Duty Free, HMY, Beauty Luxe, Beauty Concepts and Relay India. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
Sunil Tuli, President of the Asia Pacific Travel Retail Association (APTRA), opened the APTRA India Conference with a call to embrace India as the industry’s most compelling long-term growth opportunity.
Sunil Tuli, President of the Asia Pacific Travel Retail Association
Addressing delegates in Mumbai recently, Tuli acknowledged the challenging business environment, including global trade tensions and inflationary pressures across key categories such as beauty, spirits, and confectionery. “We now face a new disruptor in the form of tariff wars,” he noted, pointing to ongoing tensions sparked by the US administration’s trade strategies.
“India’s economy will soon reach $4trn, making it the world’s fifth largest, with projections to overtake Germany by 2027,” said Tuli.
Tuli highlighted the transformational growth of India’s aviation and retail infrastructure, including the upcoming Navi Mumbai International Airport, set to begin commercial operations in late July. The new hub will support Mumbai’s ambition to grow its economy from $140bn to $1.5trn by 2047.
With over 40,000 new passports issued daily and international travel spend by Indian consumers rising to $70bn in 2024, Tuli described a “new India” fuelled by its rapidly expanding middle class and Gen Z consumers. This digitally savvy, brand-aware demographic is increasingly prioritising travel and consumption, creating new expectations for retail experiences.
“Increased outbound traffic—growing at 5–6% year-on-year—means more travellers, more spending, and more opportunity for travel retail to shine,” he said.
Local retailers such as Ospree Duty Free and Delhi Duty Free for setting new standards in customer engagement, with activations ranging from Bollywood celebrity appearances to gold giveaways. “Retailers in India are delivering memorable shopping moments—this is the kind of magic we need to inspire shoppers,” he said.
He pointed out APTRA is committed to supporting growth across the region through advocacy, knowledge-sharing and stronger collaboration between retailers, brands, and airport operators.
“Together, we must rise to meet this moment,” Tuli concluded. “India is not just part of the future of travel retail—it is leading it.”
TFWA has released details of the upcoming Asia Pacific Exhibition & Conference, which will be held in its totality from May 11-15, with the conference taking place on May 12 at the Marina Bay Sands Expo & Convention Centre in Singapore.
Philippe Margueritte, TFWA President, said of the upcoming event: “Asia is the location of some of the world’s most dynamic economies. As passengers across the region continue to take to the skies and seas in ever greater numbers, it’s paramount that we turn these travellers into shoppers. This conference will give attendees plenty of fresh ideas on how to do just that.”
Philippe Margueritte, TFWA President
Tickets for the APTRA Singapore Networking Lunch – now in its third consecutive year, are available and selling fast for the upcoming event on Sunday 11 May 2025, ahead of the 2025 TFWA Asia Pacific Exhibition.
The lunch is open to everyone in travel retail and this year it will be held in the Padang Restaurant at the Singapore Cricket Club, between 12.00-3.30pm. Located in the Marina Bay Street Circuit, the venue is 10 minutes by taxi from the MBS Expo Centre, Singapore. Tickets are available at US$120 per head to include a buffet lunch and drinks, including Champagne Piaff from Loch Lomond Group, that is supporting the event, along with Lindt.
APTRA President, Sunil Tuli said, “One of APTRA’s core strategies is to provide opportunities for networking and connection amongst members and the wider industry. We’re very grateful for the support of our partners Champagne Piaff & the Loch Lomond Group and Lindt, as their contribution helps us to deliver a premium event at a reasonable price.”
In keeping with APTRA’s status as a non-profit organisation, the tickets are priced to cover costs without profit.
For many, the news from Asia Pacific is cause for concern. China’s ailing economy has damaged consumer confidence, leading to a projected 20% drop in luxury consumption according to a recent Bain & Company report. Meanwhile, South Korea’s duty free market faced a -22% year-on-year fall in H1 average spend, based on figures from the Korea Duty Free Association. Contrast those negative pointers with a 55% rise in concession income at Airports of Thailand for the year ending in September, more than double the growth of passenger traffic through the country’s terminals. And DidaTravel noted surging Chinese outbound travel during Golden Week, with trip bookings within Asia Pacific up 77% over last year and almost tripling for the Americas.
APAC continues to be the largest travel retail market by region – accounting for approximately 40% of global market share by revenue.
China is expected to remain the largest travel retail market through to 2030 and will continue to be a priority market for many brands.
India is also expected to grow in importance over the medium to long term as more Indians join the ranks of the country’s growing middle class.
Southeast Asian markets also present significant growth opportunities, with brands looking to capitalise on growth in new markets including Thailand and Vietnam.
In a pioneering move to safeguard consumers and reinforce trust in premium Indian spirits, Piccadily Agro Industries Limited has become the first Indian alcobev company to implement ForgeStop’s cutting-edge anti-counterfeit smart label technology for its acclaimed Indri Single Malt.
With counterfeiting rampant in India—where it’s said that more Scotch is consumed than Scotland even produces—Piccadily has taken a bold and proactive step. By integrating NFC-enabled smart labels into its packaging, the company is setting a new benchmark in authenticity and transparency, investing significantly to ensure consumers receive only genuine, original products, reinforcing trust in premium Indian spirits.
ForgeStop InfoTap Labels on Piccadily products utilise EM Microelectronic echo-V chips with 128bit AES encryption and dynamically changing tokens – giving them bank level security and making them virtually impossible to fake. They also feature tag-tamper detection – alerting a consumer if the bottle seal has ever been broken – this prevents bottle re-use, a major issue with Alcohol counterfeiting that is difficult to combat with other technologies. Its platform creates a unique digital twin of every product at the moment of production and secures the product until it’s enjoyed by the customer. The software allows for app-free authentication and provides batch level product information – making it the most user-friendly anti-counterfeit technology available. This technology can be connected to the blockchain generating an immutable product journey – securing supply chains.
Unlike static technologies such as QR codes or holograms, this NFC tap and verify experience allows customers to simply tap their smartphones to the bottle to instantly confirm its authenticity and view batch-level information.
“As a brand committed to authenticity and quality, we’re proud to be the first Indian single malt brand to take this bold step,” said Praveen Malviya, CEO (IMFL), Piccadily Agro Industries Limited. “Counterfeit alcohol is a serious issue in India and globally. With ForgeStop’s smart technology, our customers can enjoy Indri with the confidence that what’s in the bottle is exactly what we crafted.”
“We’re proud to partner with Piccadily Distilleries, a globally recognised brand leading the way in product integrity. With ForgeStop’s smart label technology, consumers can instantly verify authenticity and access product information with a simple tap—no app required. It’s a seamless blend of security and brand storytelling.” said Terry Katz, CEO of ForgeStop.
As per the TRACIT (Transnational Alliance to Combat Illicit Trade) September 2023 report on India, a significant share of alcohol sold in India is counterfeit—well above the global average—and the problem is escalating rapidly. Counterfeit alcohol not only harms brands, but also poses serious risks to consumer health.
The Scotch Whisky Association (SWA) has unveiled an interactive map showcasing the breadth of legal protection for Scotch Whisky around the world. Scotch Whisky is specifically protected in a number of different ways around the world, including as a Geographical Indication (“GI”), through bilateral agreements between the UK and third countries, through Certification Trademarks or Collective Trade Marks, and in the domestic legislation of some countries.
These protections mean that the description “Scotch Whisky” can only legally be used on whisky wholly produced and verified in Scotland under the terms of the Scotch Whisky Regulations 2009 and Product Specification for Scotch Whisky.
Considered the “gold standard” of protection, GI status provides a robust legal framework for action against any infringement. It allows court proceedings to be initiated against counterfeiters, with the possibility of damages, seizure, and even destruction of fake products.
The trade association successfully registered “Scotch Whisky” as a GI in Azerbaijan at the end of last year. It was the latest market to grant Scotch Whisky GI protection and joins over 85 others in providing this specific level of legal protection.
Different types of protection for Scotch Whisky do not deliver the same level of protection or the same effectiveness, with some markets offering one type of protection or another but little enforcement. The SWA’s Legal Affairs team works closely with in-market advisors to determine the best form of protection for Scotland’s national spirit.
Alan Park, Director of Legal Affairs at the Scotch Whisky Association
Alan Park, Director of Legal Affairs at the Scotch Whisky Association, said, “Scotch Whisky’s global reputation means that there are many who want to take advantage of it by suggesting that their products are Scotch Whisky when they are not. Strengthening protection around the world and taking action to prevent the sale of fake products to protect Scotland’s national spirit is a key priority for the SWA.
“We thank the UK government and our local lawyers in different markets for their support in securing legal protections around the world, giving consumers confidence in the authenticity and quality of Scotch Whisky sold in their local market.”
• Prime Minister, Narendra Modi calls the pact ‘historic milestone’
• UK Prime Minister, Keir Starmer believes it would strengthen alliances and reduce trade barriers
• Scotch whisky and gin tariff reduced from 150% to 75%
• Indian alcobev industry hopes ‘minimum import price’ and non-tariff barriers are addressed
• Radico Khaitan to import `250 crore worth of Scotch in Fiscal Year 2025-26, expects substantial cost-benefit
After protracted negotiations from January 2022, India and the United Kingdom finally signed the ‘Free Trade Agreement’ on April 6. The Indian Prime Minister, Narendra Modi has termed it as a ‘historic milestone’, while his UK counterpart Sir Keir Starmer said that strengthening alliances and reducing trade barriers with economies around the world is part of their ‘Plan for Change’ to deliver a stronger and more secure economy.
The FTA signing announcement came following a telephonic conversation between Prime Minister Modi and his UK counterpart Starmer. The pact was signed in London by the Indian Commerce Minister, Piyush Goyal and the UK Trade Secretary, Jonathan Reynolds. The FTA covers 90% of tariff lines and includes tariff cuts on Scotch whisky, gin, automotive exports, medical devices, and machinery.
Scotch Whisky Tariff Halved
The Scotch whisky industry has been seeking reduction in tariff and that has been halved from 150% to 75% at entry into force, following to 40% after 10 years.
It must be mentioned here, recently India had reduced the tariff on American whiskey (bourbon) from 150% to 100%. India is likely to see now more of imported whiskies, predominantly Scotch as Indians love the dram.
Automotives down from 100% to 10%
The UK Department for Business and Trade (DBT) said that besides whisky and gin, tariff reductions have also been achieved on products such as medical devices, advanced machinery and lamb. Automotives has had the biggest tariff reduction from 100% to 10%. DBT said that the reduction of tariffs would be worth over 400 million pounds based on 2022 trade statistics and is expected to double to 900 million pounds by 2035.
“By striking a new trade deal with the fastest-growing economy in the world, we are delivering billions for the UK economy and wages every year and unlocking growth in every corner of the country, from advanced manufacturing in the North-East to whisky distilleries in Scotland,” said Trade Secretary Reynolds.
PM Modi’s Tweet
Prime Minister Modi
Prime Minister Modi tweeted “Delighted to speak with my friend PM Keir Starmer. In a historic milestone, India and the UK have successfully concluded and ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies. I look forward to welcoming PM Starmer to India soon.”
Both agreed that the landmark agreements between the two big and open market economies of the world will open new opportunities for businesses, strengthen economic linkages, and deepen people-to-people ties.
The two leaders agreed that expanding economic and commercial ties between India and the UK remain a cornerstone of the increasingly robust and multifaceted partnership. The conclusion of a balanced, equitable and ambitious FTA, covering trade in goods and services, is expected to significantly enhance bilateral trade, generate new avenues for employment, raise living standards, and improve the overall well-being of citizens in both countries. It will also unlock new potential for the two nations to jointly develop products and services for global markets. This agreement cements the strong foundations of the India-UK Comprehensive Strategic Partnership, and paves the way for a new era of collaboration and prosperity.
PM Starmer
The talks between the two nations have been going on since January 2022 and the signing gains importance in the backdrop of the tariff war initiated by the US President Donald Trump. Between 2022 and now, Britain has seen four different Prime Ministers, including the previous PM Rishi Sunak, involved in the negotiations.
INDUSTRY REACTIONS
Sudden and steep reduction, impacts Indian alcobev sector: Deepak Roy
Deepak Roy
However, the Confederation of Indian Alcoholic Beverage Companies (CIABC) while welcoming the cut in tariffs said it should have been gradual.
The Chairman of CIABC, Deepak Roy said the reduction from 150 to 75% is ‘sudden and steep’ which should have been gradual as the Indian alcobev sector is going through difficult times, besides operating in a highly regulated market.
“The Indian single malts, the gins and others are doing well, but we needed another couple of more years to make them really competitive in the global market.”
He said CIABC is hoping that non-tariff barriers are addressed in the FTA. “We had proposed a minimum import price of 50 to 75$ per case to ensure that there is no dumping of cheap and unknown products.”
Roy added that it was time for some of the State Governments to withdraw the excise duty concessions given to multinational corporations. “There should not be any difference and there should be a level playing field.”
While stating “We are not against any tariff reduction. The Indian industry is ready to compete with the global best and they are holding their own. Only thing, we do not want unknown cheap brands coming and killing the industry here which is providing substantial revenues to the State governments.”
CIABC hopes for ‘Minimum Import Price’: Anant Iyer
Anant S. Iyer
The Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), Anant S. Iyer said, “Though FTA details are still awaited, from what information we have gathered it seems that the Government has not fully heeded to the pleas of the Indian alcoholic beverage industry.
We have always been asking for a level-playing field for the Indian players. We only hope that the government has included in the FTA the minimum import price (MIP) which will prevent dumping / under invoicing and also the removal of non-tariff barriers to ensure better international market access to Indian alcoholic beverages.
“We fear that if the same template of duty reduction is followed for the trade deals with the EU, the US and other nations which produce spirits and wines, then the Indian Alcobev industry, including the wine sector, could get adversely impacted.”
CIABC has urged the Government of India, as pointed out earlier also to various states such as Maharashtra, Kerala, Odisha, Rajasthan, Madhya Pradesh etc., to review the excise concessions given to imported liquor, both spirits and wines. “The governments should make them equal to that of IMFL / Indian wines. This discrimination should end immediately.”
He added, “The government is looking to touch $1 billion exports from the Indian Alcobev industry by 2030. However, without ensuring proper market access especially to the Western nations, it will be difficult to meet the export target. While the other sectors might be benefitting from the FTA, the Indian Alcobev industry seeks similar benefit. Though Indian whiskies, rum and gins have been winning accolades globally, without removal of non-tariff barriers and granting of market access it will be difficult for the Indian Alcobev sector to meet the export target.”
Suntory’s Neeraj Kumar calls its ‘pivotal development’
Neeraj Kumar
Neeraj Kumar, Managing Director, Suntory Global Spirits India terming it a ‘historic milestone’, welcomed the decision to reduce tariffs on whisky and gin. “This is a pivotal development that will improve access, affordability, and consumer choice in India. It also marks a positive step in strengthening bilateral trade ties and fostering an environment for enhanced investment, innovation, and growth. The team at Suntory Global Spirits looks forward to unlocking new opportunities for collaboration and growth across both markets.”
Positive Shift for India’s Alcobev Sector: Abhishek Khaitan
Abhishek Khaitan
The Managing Director of Radico Khaitan, Abhishek Khaitan while extending his congratulatory messages to the Prime Minister and the Minister of Commerce said, “This is a welcome move that signals a positive shift for India’s alcobev sector, particularly for companies on a premiumisation journey and those which are producing world-class spirits.
“As the largest importer of Scotch whisky for blending, Radico sees significant potential for cost advantages through the expected reduction in customs duties. Radico plans to import scotch malt worth ₹250 CR in fiscal year 2025-2026, and this treaty therefore benefits us substantially.
“Overall, this agreement creates a win-win opportunity for Indian companies striving to take India to the global stage with excellence and innovation.”
Hope Indian Single Malts will not dilute premium image: Amar Sinha
Amar Sinha
The Chief Operating Officer of Radico Khaitan, Amar Sinha termed it as a ‘landmark’ pact that was ‘long overdue’.
“India is transforming and we as a country are producing world class spirits and constantly upgrading our quality. To produce this quality of spirit, obviously we need to import spirits for blending which India does so far as vatted malt Scotch is concerned from Scotland.
“Radico as a company are the largest importers of vatted malt Scotch. This fiscal year 2025-26, Radico plans to import scotch worth ₹250 crores. With this FTA, Radico is going to get substantial benefit on the cost front which will make the company healthier and more profitable. So, we personally think as a company that it’s a great agreement and it will offer great opportunities for Indian companies to continue their premiumisation drive and keep reducing their cost.”
Sinha, however, added, “As far as Indian single malts (ISM) are concerned Radico produces ISM which are today acknowledged as one among the top 10 spirits of the world. Rampur ISM is one among top whiskies from India. We have priced our product pretty high and we believe in pricing our product much higher than what competition does. So, we are not weary of the fact what the competition does to its price. We feel that competition if it reduces price, they will be diluting the image of their premium brand, therefore we don’t think they will reduce price. It would be an opportune moment for foreign companies to make some money through this tax reduction.”
It is a very welcome move and a win-win situation for the UK as well as India, he said and added that the demand of India to look into non-tariff barriers is genuine. “We are waiting for the fine print of the FTA, before that it is difficult to comment.”
‘Short-term impact’ on Indian products: Paul John
Paul. P. John
The Chairman of John Distilleries, Paul. P. John while welcoming the FTA said, “We believe this to be a significant step towards strengthening bilateral trade and economic cooperation between the two countries. This may have a short term impact on Indian products however we are confident about the quality of our products. We also hope that that this deal will allow better ease of business for Indian products in the UK. It is also crucial to ensure that both nations maintain a level playing field, safeguarding the interests of domestic industries and promoting fair competition.”
Three-year maturation period contentious issue: Vinod Giri
Vinod Giri
The Director General of Brewers Association of India, Vinod Giri who has championed the cause of the spirits industry earlier, said, “We are yet to see what India gets in return and how the non-tariff issues are handled – especially the condition of three-year maturation to qualify as whisky and measures to prevent predatory pricing.
“In terms of impact Scotch makers are expected to improve their margins first by adjusting duty savings in invoice prices and if that happens, market dynamics will remain unchanged in short terms. Companies importing raw material for blending with domestic whiskeys in India will make some savings on cost.
“The most important long-term impact will be on BII (bottled in India) category. As duties start falling, the rationale for that segment will go away.”
About 30% reduction in retail price, avers Ajay Srivastava
Ajay Srivastava
Ajay Srivastava, the Founder of Global Trade Research Initiative and who was earlier part of negotiations with Australia said, “it’s a good decision and trade would increase between the two countries across sectors.”
While stating that as details of the FTA were still not available it would ‘difficult to hazard a guess’ on what the minimum import price would be, Srivastava said but added that “it will only be on the higher side, unlike wine which is around 4 dollars. Scotch always sells at a premium.”
Srivastava said the question that needs to be asked is how much would be the retail price be following the duty reduction. Giving a hypothetical scenario, he said if a bottle of Scotch whisky is 100$ and the duty at 150% and average State government duties is 60%, the consumer will be buying at $400. Now with the tariff halved from 150 to 75%, the consumer will pay 275$ which is almost 30% reduction. It is a good deal and people are anyways willing to pay for Scotch.”
On whether the Indian spirits market would be impacted, Srivastava asked “Is any Indian company producing Scotch. Nobody is in the bulk business. The Indian single malt is a niche market and does not compete with Scotch. Yes, Indians love Scotch.” However, he added that the Indian alcohol sector has to further develop and this would help in doing so.
He said the FTA would open the flood gates to Europe seeking reduction in tariff on wines, maybe up to 50%.
Sanjiv Puri, Regional Director (India), Angus Dundee Distilleries
Sanjiv Puri
The proposed Free Trade Agreement (FTA) between India and the United Kingdom marks a significant milestone in strengthening bilateral trade and investment ties. For Angus Dundee Distillers, this development presents a promising opportunity to enhance our presence in one of the world’s fastest-growing spirits markets.
India’s burgeoning middle class, evolving consumer preferences, and growing appreciation for premium Scotch whisky align well with our commitment to delivering high-quality, authentic Scottish products. A well-negotiated FTA could lead to reduced tariffs and streamlined regulatory procedures, addressing long-standing market access barriers that have limited the full potential of Scotch exports to India.
Currently, imported Scotch whisky faces a high customs duty of 150% in India, which restricts competitiveness and volume growth. A phased reduction in tariffs under the FTA would not only make premium Scotch more accessible to Indian consumers but also support local economic activity through increased trade, investment in distribution, and brand development.
For Angus Dundee, a family-owned independent company with a long-standing tradition of quality and integrity, this FTA offers a platform to expand responsibly, collaborate with Indian partners, and contribute meaningfully to the India-UK trade corridor.
We look forward to the successful conclusion of the agreement and are optimistic about its potential to unlock mutual growth and value for both countries.
ISWAI believes premiumisation will get further boost
The CEO of International Spirits and Wines Association (ISWAI), Sanjit Padhi said, “We anticipate that this will accelerate the ongoing trend of premiumisation within the alcobev sector, positively impacting the exchequer revenues of Indian states. Cheaper prices may also result in premiumisation. India’s increasingly aspirational and discerning consumers will now have access to premium international brands at more accessible prices.”
Pegs on enhanced consumer experience
Suresh Menon
The Adviser (Tax and Regulatory Affairs) of ISWAI, I.P. Suresh Menon said, “ISWAI and its members welcome the UK-India Free Trade Agreement as a landmark development for the Alcobev sector. The reduction in tariffs offers significant strategic benefits for both countries. India’s increasingly aspirational and discerning consumers will now have access to premium international brands at more accessible prices. This enhanced choice will elevate the consumer experience and boost growth across related sectors such as tourism and hospitality.
“We anticipate that this will accelerate the ongoing trend of premiumisation within the Alcobev sector, positively impacting the exchequer revenues of Indian states. We see this agreement as a win-win for all stakeholders in the spirits sector whilst fuelling trade, attracting investment, and fostering the exchange of best practices. It reflects the shared commitment of India and the UK to deepening economic ties and advancing fair, balanced trade.”
RV Subramanian, Director, Ian Macleod Distillers India Pvt Ltd
RV Subramanian
The UK India FTA is a long-awaited trade deal covering wide range of goods and services between two countries. The most important one among the items is Scotch whisky, the proposed duty reduction of 75% from present level of 150% is a welcome move and this will benefit all stakeholders – the Governments (Centre and States), Scotch whisky companies and Consumers.
India being a predominantly whisky market, the customs duty reduction would expand the market for Scotch whisky, which is currently less than 2% of total Indian whisky market.
It is to be seen whether the states are increasing excise duty and other levies on imported bottled spirits.
It is difficult to predict now, whether consumer will get the benefit of customs duty reduction from 150% to 75% on Scotch whisky, much will depend on the State Excise and Brand owning companies.”
Scotch Whisky Association calls its ‘once in a generation deal’
While the Indian alcobev sector is still hoping for a ‘level playing field’, the distilleries in Scotland are more than happy.
The Chief Executive of the Scotch Whisky Association, Mark Kent calling it a “transformational” deal said, “The UK-India free trade agreement is a once in a generation deal and a landmark moment for Scotch Whisky to the world’s largest whisky market.
“The reduction of the current 150% tariff on Scotch Whisky will be transformational for the industry. The deal has the potential to increase Scotch Whisky exports to India by £1bn over the next five years and create 1200 jobs across the UK. The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market.
“This agreement shows that the UK government is making significant progress towards achieving its growth mission, and the negotiating teams on both sides deserve huge credit for their dedication. The Scotch Whisky industry looks forward to working with the UK and Indian governments in the months ahead to implement the deal which would be a big boost to two major global economies during turbulent times.”
Chivas Brothers CEO terms it ‘game-changer’
Jean-Etienne Gourgues
Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said the FTA is a “welcome boost for Chivas Brothers during an uncertain global economic environment.”
He said “India is the world’s biggest whisky market by volume and greater access will be a game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s. The deal will support long term investment and jobs in our distilleries and bottling plants in Scotland, as well as help deliver growth in both Scotland and India over the next decade. Slàinte (meaning cheers in Irish) to the UK Ministers and officials who steered the deal though long negotiations.”
Chivas Brothers Ltd. which is part of the Pernod Ricard group of companies, exports over £2bn of Scotch whisky and gin every year, including brands like Chivas Regal, Ballantine’s, The Glenlivet and Beefeater. India is amongst Chivas Brothers’ largest export markets and the biggest consumer of whisky worldwide by volume. The UK-India trade agreement will help solidify and potentially expand on Pernod Ricard’s existing investments, which includes a €200m distillery construction in the Indian state of Maharashtra and £100m in bottling facilities in Dumbarton, Scotland.
Quality and choice will increase across India: Debra Crew
Debra Crew
Diageo Chief Executive Debra Crew said, “The UK-India Free Trade Agreement is a huge achievement by Prime Ministers Modi and Starmer and Ministers Goyal and Reynolds, and all of us at Diageo toast their success. It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK.
“The deal will also increase quality and choice for discerning consumers across India, the world’s largest and most exciting whisky market. Diageo is a global leader in beverage alcohol with a collection of brands across spirits and beer categories sold in more than 180 countries around the world. These brands include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.”
The Managing Director and CEO of Diageo India (USL), Praveen Someshwar
While congratulating the leaders for the historic agreement said, “The landmark treaty will enable improved accessibility and choice of scotch for the Indian consumers, the largest and the most exciting whisky market.”
Diageo is a leading player in India’s beverage alcohol sector and is among the top 10 fast-moving consumer goods companies in India by market capitalisation. Diageo has 35 manufacturing facilities across India, employs over 3,300 people directly in market with a further 100,000 jobs supported throughout its value chain. India is one of Diageo’s largest markets globally and accounts for almost half of its total global spirits volume.
Better access to global premium spirits: Sachin Mehta, William Grant & Sons
Sachin Mehta
Sachin Mehta, Managing Director – India of William Grant & Sons India Pvt. Ltd. Said, “This will enable much better access to global premium spirits to India’s growing discerning consumers. This enhanced choice will allow acceleration of the ongoing trend of premiumisation within high-end spirits, not only elevating the Indian consumers experience, but also benefitting the overall industry, trade, exchequer, and related sectors or travel, tourism, and hospitality. We are committed to provide access and choice of world-class brands of our global portfolio to the Indian consumers.”
‘Over the Moon’: Karan Billimoria
Karan Billimoria
Karan Billimoria, Chair of the International Chamber of Commerce, UK, Founder of Cobra Beer and Member, House of Lords, UK Parliament said he was ‘over the moon about the UK-India Free Trade Agreement’.
Calling from the UK, he said, “Negotiations started when I was President of the Confederation of British Industry (CBI) in early 2022 and they have concluded over three years later, whilst I am Chair of the International Chamber of Commerce (ICC) UK.
“India is the fastest growing major economy in the world and this year will become the fourth largest economy globally. In spite of this, India is only the 11th largest trading partner of the UK; it should be one of the handful of largest trading partners.
“I believe this FTA will be a catalyst for bilateral trade, business and investment between the UK and India and will turbocharge bilateral trade in goods and services from the current level of £42 billion to more than double at over £80 billion within the next five years.
“India has historically been a high tariff country, with the extreme being the tariff imposed on Scotch whisky at 150%. Thanks to this FTA, this will halve to 75% and decrease to 40% over the next decade. Scotch whisky exports are, as a result, expected to increase by £1 billion.
“I am hoping that this FTA combined with an investment agreement will also help to increase bilateral investment between the two countries. We already have the examples of Tata investing in Jaguar Land Rover and Tata Steel in the UK, and JCB investing hugely in India over the past decades. Similarly, I am confident that there will be large investments by British alcobev companies in India over the coming years.”
Angus Dundee recently unveiled its latest expression – the 2012 vintage Tomintoul 12 Year Old Oloroso Sherry Cask Finish. This annual release has been crafted by its Master Distiller, Robert Fleming, who selected single malt distilled in 2012, initially matured in exceptional ex-bourbon American oak casks.
The single malt is then finished in the finest Oloroso Sherry butts sourced from Andalucía, Spain, adding a rich layer of complexity. On the nose, there is sweet aromas of dried fruits, crème caramel, and roasted nuts. The palate reveals buttery layers of golden syrup and brittle toffee, while the finish is long and warming, with notes of maple flapjacks, candied pecans and warming wood spices.
The Oloroso Sherry casks elevate Tomintoul’s character, imparting deep fruit flavours and creating a whisky with exceptional depth.
