India and the UK have signed a major trade agreement, but don’t expect your favourite Scotch whisky brands—like Glenlivet, Black Label, Glenmorangie, and Chivas Regal—to get cheaper immediately. Although the deal reduces the high 150% import duty on Scotch, the price cuts will only happen once the UK Parliament approves the agreement. This is expected to happen by mid-next year.
Even after the agreement is approved, the price of Scotch whisky in India will only drop by 8–10%. That’s because customs duty (which is being cut) makes up only about 15–20% of the total price. The rest of the price comes from state taxes and distributor margins.
The UK had pushed hard for a cut in Scotch import duty during trade talks. Under the new agreement, the duty will first reduce to 75%, and then gradually to 40% over the next ten years.
Top global liquor companies, including Diageo, have welcomed the deal. Indian liquor companies are also happy, as many of them import Scotch in bulk for bottling and blending with Indian whiskies. This deal will help lower their costs too.
Praveen Someshwar, CEO of Diageo India, said the agreement will improve trade and give Indian consumers more premium whisky options. Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), added that it will help make trade between India and the UK more fair, especially since Indian alcohol already enters the UK duty-free.
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An industry expert explained that although import duties are being halved, the final price for customers won’t fall drastically, due to other factors in pricing like state taxes and retail margins.
The deal is also expected to benefit Indian liquor manufacturers. About 80% of Scotch imports come in bulk form for bottling and blending in India. Abhishek Khaitan, MD of Radico Khaitan, said that the company expects to import Scotch worth over ₹250 crore in FY26 and sees this deal as a big opportunity to cut costs and grow.
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While the India-UK trade deal is a positive move for the liquor industry and bilateral trade, don’t expect cheaper Scotch on shelves until at least next year—and even then, only by a small margin.
