India-UK FTA: A market in wait?

Tariffs on scotch are set to fall, but nearly a year after the India-UK trade agreement, uncertainty around pricing, policy, and execution continues to shape the market.

- Geetika Sachdev

The India–UK free trade agreement (FTA) has been a long time coming. For years, it moved in fits and starts as a consequence of political and economic uncertainties. It was finally signed in 2025, paving the way for stronger bilateral ties between the two nations.

At a broad level, the agreement is meant to ease market access and bring down tariffs across sectors. But in India’s case, trade policy rarely plays out in a linear manner. What gets agreed at the Centre often takes time (and negotiation) to show up on ground.

That gap is especially visible in the alcobev sector. While other spirits are gradually beginning to pique the interest of consumers, scotch has always occupied a curious position in India. It is widely recognised and considered aspirational, yet there are limitations courtesy of high duties and a complex regulatory structure.

The FTA was expected to address some of these barriers, particularly on pricing. Nearly a year later, the bigger question is how much of that intent is actually translating into change.

A market too big to ignore

India is the largest whisky market in the world by volume. Yet scotch continues to account for only a small fraction of it. In 2024, India imported the equivalent of over 192 million bottles of scotch, making it the category's largest export market globally by volume. Over the past decade, those volumes have grown by more than 200%, pointing to sustained demand. But that demand hasn’t translated into proportional market share. Scotch still makes up roughly 2-3% of India’s whisky consumption.