India–UK trade deal to make imported Scotch whisky cheaper: Prices may drop 5–10% for Indian consumers

The India–UK Free Trade Agreement (FTA) is set to come into effect on 15 July. One of the biggest takeaways for Indian consumers is the gradual reduction in prices of imported Scotch whisky and gin.

Under the agreement, import tariffs on whisky and gin will be cut from the current 150% to 75% initially, then to 40% by the 10th year of the deal.

However, consumers should not expect prices to fall by the same percentage as the reduction in import duty.

According to Paul P John, Chairman, John Distilleries, import duty is only one part of the final retail price. Other costs, such as state excise duties, VAT, distributor and retailer margins, logistics, packaging and marketing, make up a much larger share of what consumers ultimately pay.

As a result, the benefits of lower tariffs are likely to be gradual and will vary across states.

How much could consumers save?

The actual savings will depend on where you live and the type of Scotch you buy.

John says, “Consumers might see an initial retail benefit of roughly 5–10%, which may translate into a few hundred rupees per bottle. This will also depend on the state where the consumer is located.”

He explains that in high-tax states such as Maharashtra, customs duty accounts for only 10-15% of the final retail price, limiting the impact of lower tariffs. Consumers there may see price cuts of around 5%, provided importers pass on the benefit.

In states with relatively lower taxes, such as Haryana, prices could fall by as much as 15%. However, in states where government corporations control liquor distribution, such as Telangana and Andhra Pradesh, the reduction may not immediately reach consumers as state authorities could absorb the duty savings instead.

Which Scotch whiskies will get cheaper?

The biggest beneficiaries are expected to be bottled-in-origin (BIO) Scotch whiskies, which are those fully distilled, aged, labelled and bottled in Scotland before being imported into India.

John highlighted that, “Bottled-in-origin imported Scotch will see some impact, while bulk-imported and bottled-in-India Scotch is likely to see more muted benefits. We should see more low-end Scotch entrants into India with prices in the Bottled in India Scotch range.”

For example, a 750 ml bottle of Johnnie Walker Black Label Aged 12 Years Blended Scotch Whisky and a 750 ml bottle of Chivas Regal 12 Year Old Blended Scotch Whisky are both currently priced at ₹3,888. Their prices could fall to ₹ 3,499– ₹ 3,694 after a 5–10% reduction, resulting in savings of ₹194– ₹389 per bottle.

Similarly, Ballantine's Finest Blended Scotch Whisky (750 ml), currently priced at around ₹2,634, could fall to ₹2,502– ₹2,371 in India.

A 750 ml bottle of Monkey Shoulder The Original Batch 27 Blended Malt Scotch Whisky, currently priced at ₹4,390, could decline to ₹4,171– ₹3,951.

Meanwhile, Lagavulin 16 Year Old Single Malt Scotch Whisky (750 ml), priced at ₹11,413, could become available for around ₹10,842– ₹10,272.

Source: Wine-Searcher; Prices as of June 26, 2026. Actual prices may vary.

When will prices actually come down?

Consumers may have to wait before seeing cheaper bottles on store shelves.

John mentioned, “Six months to a year after the implementation, depending on when the changes are made and the state in question. Importers will need to clear old inventories, rebuild RTM costs and register the new MRPs in the state. The benefits will be visible to consumers only after this.”

What does this mean for buyers?

Apart from lower prices, consumers could also benefit from greater choice. More Scotch brands, especially in the affordable premium segment, could enter the Indian market as imports become more viable.

John believes the agreement will ultimately benefit both consumers and the domestic industry. “We may see a bigger participation from UK-based companies in India, maybe with some local bottling too.

The trend of premiumization will continue, and while the market will open to more foreign participation, the Indian companies offering quality will also gain more recognition by comparison with a wider base,” he concluded.

Disclaimer: This is for informational purposes only. The views expressed are solely those of the expert and not those of Mint.