Suntory Global Spirits is deepening its imprint in India’s thriving travel retail sector with a clear focus on premiumisation and experiential retail. Mandeep Singh Thukral, Senior Regional Commercial Manager, GTR India, Suntory Global Spirits, outlines the group’s strategic expansion and growing resonance among discerning Indian consumers, especially with the launch of the Bowmore Appellations Collection, now exclusively available at Delhi Duty Free and Ospree Duty Free, Mumbai (Arrivals).
Mandeep Singh Thukral, Senior Regional Commercial Manager, GTR India, Suntory Global Spirits
This exclusive single malt series features four rare, age-statement expressions, each finished in casks from celebrated European wine regions, fusing Islay’s signature smokiness with rich global terroirs. “The Bowmore Appellations Collection reflects our commitment to premium storytelling and innovation in the travel retail channel,” notes Thukral.
Expanding Footprint with Premium Spirits
India’s travel retail market is on a growth trajectory, propelled by surging international and domestic passenger movement and a strong appetite for luxury offerings. Suntory Global Spirits has positioned itself strategically with a comprehensive portfolio that spans across iconic Japanese whiskies—Yamazaki, Hibiki, Hakushu, Chita, and Toki—under The House of Suntory. This is complemented by American legends Jim Beam and Maker’s Mark, Islay favourites Bowmore and Laphroaig, and premium white spirits Roku Gin and Haku Vodka. Notably, Suntory’s portfolio also includes India-specific expressions tailored to local tastes, underscoring a nuanced and market-sensitive approach.
Creating Awareness Through Immersive Experiences
Suntory Global Spirits is not only selling bottles—it’s offering experiences. At the flagship Delhi and Mumbai duty-free outlets, the company has curated immersive shop-in-shop boutiques. These spaces feature Kigumi-style wooden lattice architecture, Marumado-inspired digital screens, Zen garden podiums, and interactive digital panels exploring artistic collaborations, including with Japan’s Chiso Kimono House.
A dedicated section on The Art of Japanese Gifting, complete with customisable Kandji cards, further enhances the shopping journey, reflecting the Japanese spirit of Omotenashi—wholehearted hospitality. “These installations aim to educate and engage, turning a duty-free visit into a meaningful cultural moment,” adds Thukral.
Capitalising on India’s Single Malt Surge
Recent data from the IWSR shows Indian Single Malts (ISMs) overtaking Scotch Single Malts in domestic sales for the first time in 2024, growing by over 25% this year following 75% growth in 2023. This transformation signals a distinct consumer pivot towards premium, character-rich whiskies.
“Such growth validates our long-term investment in India,” says Thukral. “While our Japanese whiskies continue to lead with global prestige, our Scotch single malts—including Bowmore and Laphroaig—are also seeing increasing demand.”
The introduction of travel retail exclusives like Bowmore Appellations is a strategic move to capture this discerning customer base.
Beyond India: Global Footprint with Local Relevance
The same emphasis on curation and premium offerings applies across other key travel retail markets like Dubai International Airport and Singapore Changi Airport. While the core lineup remains consistent, each market receives tailored activations and launches to cater to regional preferences.
The Kogei Collection – Japanese Kimono Edition (2024) and the Bowmore Appellations Collection, both GTR exclusives, have been rolled out in these locations, amplifying global brand synergy while respecting local consumer nuances.
Market Share and Future Pipeline
With a 5.5% share in the Indian market, Suntory Global Spirits is seeing robust growth—particularly at international airports, where average basket sizes and conversion rates are significantly higher. “It’s not just about volume, but the quality and aspiration behind each purchase,” says Thukral.
Looking ahead, the brand promises a pipeline of innovative, limited-edition expressions designed exclusively for travel retail. These are aimed at travellers who seek more than just a purchase—they seek a story.
“Our mission is to offer travellers a deeper connection to our brands—be it through craftsmanship, cultural heritage, or exclusive taste journeys,” concludes Thukral. “And India remains central to that vision.”
High taxation significantly burdens the Indian alcohol industry by increasing production costs, impacting profitability, and potentially driving consumers towards illicit alternatives. While GST doesn’t directly tax alcohol, increased taxes on input materials and logistics contribute to higher retail prices. This, coupled with state-specific excise duties and other levies, leads to a complex and fragmented market with varying prices and access points.
Indian alcohol market is estimated to be valued at 60.11 bn in 2025 and is expected to reach USD 101.10 bn in 2032, exhibiting compound annual growth (CAGR) 0f 7.7% from 2025 to 2032.
India’s alcoholic beverage industry faces regulatory hurdles like liquor bans and high taxation, impacting revenue and market share. Despite these challenges, the industry is projected to grow significantly, driven by premiumisation and evolving consumer preferences.
High taxation, particularly state-level excise duties and other levies, significantly burdens the Indian alcohol industry, impacting both producers and consumers. The industry contends with high tax burdens, with taxes often comprising 65-80% of the final retail price. This complex taxation structure, including state excise duties, VAT, and various fees, restricts financial flexibility and profitability.
In addition, the industry is hobbled by significant compliance overheads and a fragmented distribution ecosystem, where regulatory variations across states create logistical inefficiencies and increased costs. The working capital cycle is often elongated due to delayed payments from distributors and high inventory carrying costs, disproportionately affecting small and medium-sized enterprises (SMEs). For these players, who typically operate on EBITDA margins as low as 10–12%, any downward pressure on pricing can be economically unsustainable.
Indian spirits—particularly whisky, rum, and country liquor—have only a marginal share in global markets. According to data from the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported alcoholic beverages worth USD 322 million in FY 2022–23, with Indian-made foreign liquor (IMFL) comprising a major portion. In comparison, the UK exported over £6.2 billion worth of whisky alone in 2022, highlighting the asymmetry in export capacities. The entry of global players with deep pockets, established branding, and premium positioning will make it impossible for Indian brands to compete against them and scale sustainably or capture premium market share. This reduced market share could ultimately lead to downsizing, plant closures, and stagnation in rural supply chains that depend on the sector for income. If local manufacturers lose market share, states could face a decline in excise revenue and employment generation.
Tax increases on alcoholic beverages can negatively impact the alcobev industry in several ways. They lead to higher prices for consumers, potentially reducing demand, and can also increase the costs for producers due to taxes on inputs. Furthermore, tax increases can lead to a decrease in sales volume, impacting the industry’s revenue and potentially leading to job losses.
Reduced Demand and Sales Volume: Higher taxes translate to increased prices for consumers, which can make alcoholic beverages less affordable, particularly for budget-conscious consumers.
This price sensitivity can lead to a decrease in the quantity of alcohol purchased, impacting sales volume for manufacturers and retailers. Some consumers might switch to cheaper brands or even substitute with other alcoholic products, impacting specific segments of the industry.
Increased Production Costs: Even if not directly taxed, the production process of alcoholic beverages involves various inputs like bottles, labels, and packaging materials, which are subject to taxes like GST. The cost of these inputs can rise due to higher taxes, increasing the overall production cost for manufacturers.
This cost pressure can be particularly challenging for smaller or craft producers who may have less financial flexibility to absorb these increases.
Impact on Revenue and Employment: Reduced sales volume and increased production costs can significantly impact the industry’s revenue and profitability. This can lead to potential job losses in the manufacturing, distribution, and retail sectors of the alcobev industry.
The industry might also face challenges in terms of cash flow and working capital, especially when dealing with tax refunds for input costs.
Potential for Unintended Consequences: Some studies suggest that higher taxes may lead to increased illicit production and sale of alcohol to avoid taxation, which can pose public health risks and further impact legitimate businesses. Consumers may also resort to cheaper alternatives or reduce consumption in other areas to afford alcohol, potentially impacting other industries.
While the industry may argue that tax increases do not reduce alcohol-related harm, some research suggests that price increases can lead to reduced consumption, especially among heavy drinkers and young people.
Industry Arguments: The alcoholic beverage industry often argues that tax increases unfairly burden the industry and consumers, and may not be effective in reducing alcohol-related harm. They may also highlight the potential negative impact on employment and tourism, particularly in areas where the industry is a significant contributor to the local economy.
The industry may also argue that other measures, such as public awareness campaigns and responsible drinking initiatives, can be more effective in addressing alcohol-related issues.
Policy Considerations: Policymakers need to consider the potential economic and social impacts of tax increases on the alcobev industry when formulating policies. Balancing the need to generate revenue and address alcohol-related harms with the potential negative consequences for the industry and consumers is crucial. Consultation with the industry, public health experts, and consumers can help to develop more effective and balanced policies.
Overall, while higher taxes on alcoholic beverages can be a tool to address public health concerns and generate revenue, they can also pose significant challenges for the alcobev industry and potentially lead to unintended consequences. A careful and balanced approach is necessary when considering tax policy changes in this sector.
75% of companies expect to defer investment, or invest outside of the UK due to the high tax burden
One in four Scotch distillers expect to make job cuts as a result of economic headwinds
76% say an increase in duty would make them less likely to take forward capital investment and recruitment
Three in four Scotch Whisky companies will defer UK investment, or invest elsewhere, due to the high tax burden, according to research undertaken by the Scotch Whisky Association (SWA). The SWA represents over 90 companies from across the Scotch Whisky industry, that collectively account for the majority of Scotch Whisky production (around 97% of the industry).
India is likely to be one of the destinations for investment as enunciated earlier by the SWA Chief Executive, Mark Kent who had stated after the India-UK free trade agreement was signed that “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.”
Kent had mentioned how “India is Scotch whisky’s largest export market by volume, with the equivalent of more than 192 million bottles exported there in 2024. The volume of Scotch whisky exports to India have grown by more than 200% in the past decade alone, and whisky is hugely popular in India. In fact, India is the largest whisky market in the world. But while many Indian consumers are keen to add a bottle of Scotch to their shelves, bars and collections, Scotch whisky has just a 3% share of the Indian whisky market. There is huge potential for that to grow with the free trade agreement announced in Spring 2025.”
Over two thirds of price goes in taxes
Going back to the research, undertaken between February and June 2025, reveals the extent of concern companies face about the current levels of alcohol duty in the UK – with over two thirds of the average-priced bottle of Scotch Whisky collected in tax.
Following a 10.1% rise in duty in March 2023, and a 3.65% rise announced in October’s Budget, 87% of respondents to SWA’s members’ survey expressed concern that the rate of excise duty will rise once again in this Autumn’s Budget.
Any further rise in duty will have an impact not only on investment, but also recruitment, according to the companies – at a time where the whole industry employs or supports 66,000 jobs across the whole UK. A quarter of companies now expect their overall headcount to decrease given the current levels of alcohol duty.
As well as direct job impacts, there is increasing risk of knock-on job losses across the extended supply chain as distillers reduce production in the face of global tariffs impacting exports.
This research comes as the industry faces significant strain. At the start of the year, over half of those surveyed expected operational costs from Government policies – for example, EPR fees, NIC increases, and tariffs – to increase by 10%; with 40% now expecting that figure to be over 20%. Despite the increased duty levels, HMRC data shows that Treasury spirits duty receipts have not increased and failed to deliver the forecasted revenue growth.
Kent added, “The Scotch whisky industry has a long track record of investment and growth that has benefitted communities across Scotland and the supply chain across the UK. It is also an optimistic and confident sector that believes in creating future growth.
“However, the positivity of the industry is being severely tested by the relentless impact of domestic policies and global circumstances.
“The industry is facing the significant challenge of US tariffs and increasing domestic pressures at a time it would otherwise be looking to support the Prime Minister’s growth mission. This high tax burden is not delivering the expected additional revenue for the Government, but it is costing jobs and investment.
“At a time when the country needs economic growth, we cannot fail to back one of the UK’s longstanding successes.”
High taxes on Scotch whisky, specifically a recent 10.1% duty increase and a subsequent 3.65% increase, are hurting the UK alcobev industry by increasing costs for consumers and businesses, potentially leading to reduced investment and job losses, and ultimately impacting the economy. The industry argues that these tax hikes are counterproductive, leading to decreased government revenue and stifling growth.
The Scotch Whisky Association (SWA) has released global export figures that show the value of Scotch exports stood at £5.4bn in 2024. The equivalent of 1.4bn 70cl bottles of Scotch whisky were exported last year, equating to 44 per second.
The figures, released, show a decrease of 3.7% on 2023 exports by value. The Scotch Whisky Association has called on the UK and Scottish Governments to provide more support for the industry as distillers warn that the combination of pressure on consumer spending, increased domestic tax and regulation, and turbulent global trade, may continue to impact exports into 2025.
Exports by volume have increased by 3.9%, which the industry says reflects the changing trends in global consumer preferences and challenging trading environment.
India has regained its position from France as the world’s number one Scotch whisky export market by volume, with 192m bottles exported, while the United States retains its long-held position as the largest export market by value, worth £971m in 2024.
However, the whisky industry has warned that global trading conditions remain turbulent at the beginning of 2025 and have called on the UK government to do what it can to mitigate growing domestic pressures on the industry. This includes reducing excise duty on the industry, with 70% of the average priced bottle now collected in tax, reconsider the financial impact of Extended Producer Responsibility (EPR), and accelerate trade talks to reduce tariffs and market access barriers in key markets, like India.
Commenting on the export figures, Mark Kent, Chief Executive of the Scotch Whisky Association said, “Despite the resilience of the Scotch Whisky industry, 2024 has been a challenging year.
“At home, distillers are being stretched to breaking point, as consumers bear the brunt of a 14% increase on the tax on every bottle of Scotch Whisky in the last 18 months alone. The cumulative effect of inflationary impacts on input costs such as cereals, energy and shipping, and the increased tax and regulatory costs, including the substantial cost of EPR coming later this year, are being fed through to consumers when they are tightening their belts.
“Overseas, the tectonic plates of trade are shifting, and exports to traditionally strong markets in the EU and North America have become much more challenging. We continue to support UK Government to promote strong and open trade relations with key export markets around the world, and particularly to advance negotiations on FTA with India, and engage with the US Administration. The United States remains a key market for Scotch, and where the industry contributes to the US economy through direct investment and jobs.
“But support for the industry’s global success starts at home. For too long, the industry has been taken for granted, with the misguided and simplistic belief that decisions taken in Scotland and the wider UK won’t impact an industry which exports 90% of its product, supports a large local supply chain and plays a valuable part in attracting tourists to Scotland. The Scotch whisky industry is a proven driver of economic growth, jobs and investment, and needs an environment free from the shackles of excessive taxation, regulation and uncertain operating costs. The UK government must redouble its efforts to back Scotch producers to the hilt, as promised by the Prime Minister.”
These are challenging times for the beverage alcohol industry. Changing weather patterns and wildfires are affecting production of essential ingredients like grapes, barley, and hops. Many consumers are switching to low- and no-alcohol beverages. And now, tariffs.
Research by the Scotch Whisky Association (SWA) indicates that a high tax burden is causing three out of four Scotch whisky companies to either defer or shift investment away from the UK. This reluctance to invest can impact expansions, infrastructure improvements, and innovation within the industry.
Furthermore, a quarter of distillers are considering reducing headcount due to economic pressures and the current alcohol duty levels.
The industry currently supports 66,000 jobs across the UK, and any further tax increases could lead to a decline in employment within the sector and its related supply chain. High domestic taxes can make Scotch whisky more expensive compared to other spirits, both domestically and internationally, potentially impacting its competitive edge.
Tariffs already add pressure, and high domestic taxes further exacerbate this. When a 25% US tariff was imposed on single malts in 2019 (later suspended), the industry lost over £600 million in exports to the US over 18 months. This highlights how external factors, combined with domestic tax burdens, can significantly hinder export performance.
Despite duty increases, HMRC data hasn’t always shown the expected rise in spirits duty receipts. This suggests that excessive taxation can potentially discourage consumption, leading to lower-than-anticipated tax revenues, a point raised by the SWA.
While recent changes to alcohol duty have included a draught relief to support the hospitality industry, the overall duty increases can still impact the price of drinks, including Scotch whisky, in bars and restaurants. This can affect consumer spending in the on-trade sector and subsequently impact the businesses that rely on alcohol sales.
Alcohol taxes are implemented to generate revenue and address public health concerns, excessive or poorly structured taxes can have detrimental consequences for the UK alcobev industry, particularly Scotch whisky, by impacting investment, jobs, exports, and competitiveness.
After a successful debut in Goa, Davana Vermouth Indica – India’s first 100% homegrown vermouth, is now available in Bangalore. This expansion brings the brand’s expressions, Bianco and Rosso, to the garden city.
Davana is crafted using a Chenin Blanc wine base and infused with 21-23 native botanicals, including its namesake ‘Indian wormwood’ known as ‘davana’. Available in two distinct styles — Bianco, a light and floral blend with citrus and spice, and Rosso, a deep, spiced, and bittersweet offering — the brand presents an aperitif that’s versatile, elegant, and unmistakably Indian.
While vermouth has long held its place in cocktails like the Negroni, Martini, and Manhattan, it has rarely taken centre stage in Indian bars or conversations. Davana is looking to change that. The brand is not only looking to offer a local alternative to imported vermouths but also aims to educate consumers about vermouth as a category — as a pre-dinner ritual, a low-ABV sipping experience, and a key cocktail component.
Adarsh Gadvi, Co-Founder, Davana Vermouth Indica, says, “After Goa, we decided to bring Davana to a market that would spark conversations around vermouth. We’re excited to showcase a new generation of Indian spirits made for the world — but rooted at home.”
Founded by Adarsh Gadvi and Evgenii Savvateev, Davana took shape after over two years of development and more than 50 recipe trials. The bottle is a visual ode to India — adorned with intricate illustrations of lotus, peacocks, tigers, and the aromatic davana herb. The embossed Devanagari logo on the textured, cork-sealed bottle embodies bold design, artisanal craftsmanship.
Radico Khaitan Ltd. recently announced the launch of Morpheus Rare Luxury Whisky in the Uttar Pradesh market. With this strategic rollout, the company expands its premium portfolio, eyeing the 18+ million cases segment.
A specially designed Collector’s Edition Pack will accompany the launch. This limited-edition pack comprises of a 750ml whisky bottle in an exclusive gift box containing branded bar collectibles with a beautifully inscribed brand story. The first 12 customers of Morpheus Whisky in each premium outlet will have the privilege of owning this special pack.
Uttar Pradesh, being a key market for Radico’s domestic whisky portfolio, the premium whisky segment is witnessing significantly faster growth. This strong momentum makes UP a vital state in Radico’s premiumisation strategy.
Amar Sinha, Chief Operating Officer at Radico Khaitan Ltd. stated, “The launch of Morpheus Rare Luxury Whisky in Uttar Pradesh is both a strategic and a symbolic milestone for Radico Khaitan. Introducing the new brands to this dynamic state reflects our continued commitment to elevating consumer experiences through innovation, quality, and legacy. We believe Morpheus will not only deepen our connect with aspirational consumers, but also reinforce our leadership in India’s evolving premium spirits landscape.”
Commenting on the launch, Sudhir Upadhyay, Executive Vice President, Radico Khaitan Ltd., said, “Uttar Pradesh remains one of our most strategically important markets, contributing a significant growth to Radico Khaitan’s domestic volumes. With Morpheus Whisky, we are not only strengthening our presence, but also aiming to increase our share in UP’s evolving spirits landscape. This launch is a bold step in our journey to lead the premiumisation wave and redefine consumer expectations in one of India’s most influential markets.”
Crafted with imported Scotch malts and fine Indian grain spirits, this new whisky is aged in Bourbon Barrels and delivers a signature fruity-floral flair & smooth sophistication. Positioned as “The Spirit of Dreams”, Morpheus is crafted to resonate with discerning consumers who dream beyond the ordinary.
Morpheus Super Premium Whisky is priced at ₹1190 for a 750 ml bottle in Uttar Pradesh. The product will also be available in pack sizes of 375 ml, 180 ml and 90 ml in UP.
Amrut Distilleries from Bengaluru has walked away with several awards at the recently concluded 2025 edition of the San Francisco World Spirits Competition (SFWSC). Amrut made history by becoming the only Indian distillery to take home three Double Golds and an additional Gold.
The Double Gold winners are Amrut Fusion Single Malt; Amrut Indian Single Malt; and the Amrut Kurinji Indian Single Malt, while Amrut Peated Indian Single Malt bagged a Gold.
It was in 2010 that Amrut Fusion really put Amrut on the world map when Jim Murray, author of the Whisky Bible declared Fusion as the third best whisky in the world. Since then, there has been no looking back for Amrut, with the Indian market also standing up and taking notice.
At the San Francisco competition, it was Amrut Fusion which captured the imagination of the judges. Amrut Fusion, the brand ambassador of Indian Single Malt, is sourced from barleys from two distinct regions – Himalayas and peated barley from Scotland. It is distilled and matured separately in both old and new American oak barrels at the Benguluru distillery.
Amrut Indian Single Malt is the backbone of the brand’s identity. Using locally sourced barley and traditional techniques, Amrut captures the essence of the Indian terroir. The Amrut Peated Indian Single Malt offers a layered drinking experience.
The relatively newer Amrut Kurinji has quickly made its mark by portraying a different side of Indian whisky – one that’s unorthodox, adventurous, and expressive. It’s part of a new generation of spirits that aren’t afraid to take risks, much like the independent bottlers that inspired it. Bottled at 46% ABV, Kurinji epitomises the essence of Indian craftsmanship and terroir. Named after the Kurinji flower which blooms every 12 years in the Nilgiri hills, the whisky pays homage to the region’s natural beauty and cultural heritage.
Rakshit N Jagdale, Managing Director of Amrut Distilleries, said, “We are extremely pleased to receive this award from such a prestigious forum. It reaffirms that we are crafting spirits of truly world-class repute, and strengthens our resolve in the continued pursuit of delivering exceptional quality to our consumers.”
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.
• 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.”
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 tweeted “Delighted to speak with my friend PM Keir Starmer. In a historic milestone, India and the UK have successfully concluded an 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.
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.
Sudden and steep reduction, impacts Indian alcobev sector: 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 ‘Minimum Import Price’, inter-alia, is factored in
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.”
Radico Khaitan says ‘Win-win’, sees cost-benefit in its imports
The Chief Operating Officer of Radico Khaitan, Amar Sinha while welcoming the FTA has congratulated the Prime Minister, Narendra Modi and the Minister of Commerce, Piyush Goyal for concluding the ‘landmark’ pact. “It 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.”
Indian Single Malts should not dilute the premium image
Sinha 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.”
Three-year maturation period contentious issue: 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, 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%.
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
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.”
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, 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.
Diageo quality and choice will increase across India
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.”
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.
