Officials in Delhi are assessing whether the recent India-UK trade pact will reduce import tariffs on premium Scotch whisky, potentially lowering prices by up to 15%, though other costs may limit the impact.
Premium Scotch whisky may soon cost less in Delhi, with officials examining whether the benefits of the India-UK trade pact should flow through to shelf prices. The Excise Department is reviewing how the lower customs duty under the Comprehensive Economic and Trade Agreement, or CETA, should affect imported liquor in the capital, and some brands could be 10% to 15% cheaper after 10 October, according to officials cited by NDTV.
The change stems from the agreement’s tariff cut on qualifying British whisky and gin, which has reduced customs duty from 150% to 75%, with further staged reductions planned to bring it down to 40% over time. CETA took effect on 15 July, but industry watchers have cautioned that the duty cut will not translate into an equal drop at the till. As Mint has noted, import duty accounts for only a relatively small share of the final shelf price, with state excise, taxes, distributor margins and other costs making up much of the rest.
Whether a bottle qualifies for the concession also matters. The lower tariff applies only to products that meet the agreement’s rules of origin, so a British label name alone is not enough to guarantee a price break. Some spirits are shipped as finished imports, while others are bottled or produced in India, which means the benefit will vary by brand. Officials quoted by NDTV said the department is assessing each label separately rather than announcing a blanket cut.
Delhi may also be weighing a move in the opposite direction. Officials told NDTV that the government is considering an increase in excise duty as part of wider changes to the city’s liquor policy, although no fresh rise has been approved yet. The timing is uncertain after the transfer of Excise Commissioner Ravi Jha to Arunachal Pradesh, and the department is expected to wait for a successor before taking the proposal forward. In Uttar Pradesh, by contrast, the impact of the trade deal is already being prepared for 10 October, with The Times of India reporting that several UK-origin brands, including some premium Scotch labels, are set to fall by 5% to 15%, though only imported products are expected to benefit. Mint and other industry reports have said the broader effect across India is likely to be modest rather than dramatic, even as imported Scotch becomes somewhat more affordable and domestic producers face fresh competition.
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