Scotch producers target India's expanding premium whisky market after new trade deal

With the recent UK-India trade pact halving import duties on Scotch whisky, producers are turning to India, the third-largest export market by value after the US and China. The agreement reduces tariffs to 75 percent now and to 40 percent by 2036, creating a long-term growth outlook valued at £240 million over ten years. Major brands like Diageo, Pernod Ricard and Edrington have launched Indian subsidiaries and are targeting luxury hotels and restaurants in key metros.

Independent distilleries view the market as a chance to sell bottled single malts, though they must navigate state-specific excise rules and a distribution network dominated by politically connected players. Prices vary widely across cities, requiring tailored strategies for each region. The Scotch Whisky Association acknowledges the market’s size but cautions that success will take time, especially for smaller producers.