India’s appetite for premium spirits is setting the stage for a major shift in the global whisky trade, with the Scotch Whisky Association saying the country is on track to become the largest market for Scotch worldwide. The industry body’s assessment comes as India and the United Kingdom move closer to concluding the Comprehensive Economic and Trade Agreement, a deal that is expected to lower import duties and bring long-awaited price relief for millions of whisky consumers.
The association, which represents influential producers including Diageo, Pernod Ricard, William Grant & Sons, Whyte & Mackay and Suntory Global Spirits, said the trade pact is likely to deepen business ties and spark fresh investments across the supply chain. Its chief executive, Mark Kent, noted that the agreement could take effect by the middle of next year once the UK Parliament completes its approval process.
Kent said reduced import duties are expected to bring retail prices down by nearly ten percent, creating a broader consumer base and supporting domestic players that blend bulk Scotch for Indian-made foreign liquor. He added that this shift would benefit not only distilleries but also farms, logistic operators, bottling partners, restaurants and tourism businesses linked to the premium spirits category.
While the pact promises to remove long-standing market barriers, the association holds firm on an issue that has divided producers on both sides. Indian distillers have repeatedly urged the UK to recognise spirits matured for less than three years as whisky. Kent clarified that products not meeting the UK’s legal standards cannot be labelled whisky, regardless of market preferences.
India is already the single largest destination for Scotch by volume, with an industry that dwarfs Scotch production in size. The changing tariff landscape, Kent said, is encouraging new brands to consider entering India, while Indian companies are increasingly exploring investment opportunities in Scottish distilleries. He described the moment as a turning point for two-way cooperation in a fast-growing global spirits market.
