Indian spirits industry braces up ahead of UK FTA ratification

India’s spirits industry is getting aggressive with strategies as the UK-India free trade agreement (FTA) is awaiting ratification.

- ANEEKA CHATTERJEE

This is also driven by rising demand for premium alcohol.

Producers expect tariff cuts to boost consumption, innovation, price accessibility, exports, and growth across metros and emerging cities.

Weighing on the implications of the proposed FTA, Uttar Pradesh-based Radico Khaitan noted that while tariff reductions are expected, the impact may be more measured than many anticipate.

“With the implementation of the agreement, duties should come down, though effectively, the net reduction may hover around 10 percent, given the excise component,” the company observed.

“Whisky was once our weakest segment, but we are now building real strength there. In the premium and above category, we doubled down on After Dark, and we have also introduced Morpheus at around 1,200 a bottle, tapping into the largest profit pool in the segment,” said Radico Khaitan managing director (MD) Abhishek Khaitan.

Sanjay Dutt-backed Glenwalk and Ajay Devgn-backed Glenjourneys maker Cartel Bros co-founder Mokksh Sani highlighted that the FTA is a transformative moment for the premium spirits category.