India is the biggest consumer of British whisky, consuming 22 crore litres annually; Benefiting both countries from FTA
FTA: According to data shared by the Scotch Whisky Association and Confederation of British Industry (CBI), India is the largest whisky-consuming country in the world, where more than 22 crore liters of whisky are consumed every year.
Whiskey plays a significant role in the Free Trade Agreement (FTA) between India and Britain. Interestingly, India not only imports large quantities of whisky from Britain but also has become the world's largest consumer market for British whisky.
According to data from the Scotch Whisky Association and the Confederation of British Industry (CBI), India is the biggest whisky-consuming country in the world, with over 22 crore liters consumed annually. India imports premium and standard Scotch brands like Johnnie Walker, Chivas Regal, Ballantine’s, Glenfiddich, and The Macallan worth around Rs 13,000 crore each year from Britain.
Under the agreement, India has committed to gradually reduce the 150% import duty on Scotch whisky to 75% or lower. This is expected to lower retail prices of Scotch in India by 10 to 30 percent, potentially making premium whiskies like Johnnie Walker Black Label and Glenfiddich more accessible to ordinary consumers. The Scotch Whisky Association states that, with the tax cut, Scotch sales in India could increase by 20-25%, which is important for export goals.
According to the Central Board of Excise and Customs (CBIC), India earns over Rs 2.5 lakh crore annually from liquor taxes, a significant portion of which comes from foreign brands. Although the price decrease may initially reduce tax revenue, the rise in demand is likely to lead to long-term growth in overall sales and revenue.
