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FTA to bring modest dip, not a steep dive, for UK spirit prices
July 26, 2025
|Mint New Delhi
Analysts estimate 8-10% retail price reduction (₹100-300 per bottle), as import duty forms only a small part of final cost
Indian consumers hoping for the prices of their favourite UK whiskies to drop dramatically after the free-trade agreement need to temper their expectations.
The India-UK Comprehensive Economic and Trade Agreement (CETA), officially signed this week, will reduce the current 150% customs duty on spirits by half to 75% once the agreement comes into force, with a further reduction to 30-40% over the next 10 years. This applies to both 'bottled-in-origin' (BIO) spirits and bulk imports used by Indian manufacturers for blending with Indian-made foreign liquor (IMFL). The UK wines and beers are exempt from the deal.
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