New promise uncorked for premium, imported whisky and gin

Your next bottle of Black Label, Singleton, Glenlivet, or other imported favourites from the UK could soon be more affordable, thanks to the landmark free trade agreement (FTA) between India and the UK.

- Suneera Tandon

The agreement, once it comes into force, will halve the customs duty on whisky and gin imported from the UK to 75% from 150% over the next decade.

The revised duties will apply to both bottled-in-origin (BIO) and bulk imports. BIO spirits are entirely produced and bottled outside India before import, such as whisky made and packaged in the UK. Bulk imports, on the other hand, are used for making bottled-in-India (BII) products and for blending with Indian Made Foreign Liquor (IMFL).

While the exact drop in prices of the imported spirits will depend on state taxes and differ from company to company, Diageo India's chief financial officer Pradeep Jain had said in its March quarter earnings call that the duty reduction may result in approximately a high-single-digit decrease in consumer prices on the company's BIO portfolio, and about 4-5% on BII products.