UK-India trade talks

The Indian market for Scotch Whisky

India is Scotch Whisky’s largest export market by volume, with the equivalent of more than 192 million bottles exported there in 2024. The volume of Scotch Whisky exports to India have grown by more than 200% in the past decade alone, and whisky is hugely popular in India. In fact, India is the largest whisky market in the world. But while many Indian consumers are keen to add a bottle of Scotch to their shelves, bars and collections, Scotch Whisky has just a 3% share of the Indian whisky market. There is huge potential for that to grow with the free trade agreement announced in Spring 2025.

“This agreement shows that the UK government is making significant progress towards achieving its growth mission, and the negotiating teams on both sides deserve huge credit for their dedication. The Scotch Whisky industry looks forward to working with the UK and Indian governments in the months ahead to implement the deal which would be a big boost to two major global economies during turbulent times.”

Mark Kent, Chief Executive of the Scotch Whisky Association

Read the full statement here

Mark Kent

Potential for future export success

Scotch Whisky is popular among Indian consumers, but a 150% tariff on imports of Scotch Whisky into India has meant that it’s significantly more expensive to buy Scotch over Indian whiskies. As a result, India sees many ‘fake’ Scotch Whiskies on the market, produced cheaply and traded on the reputation of Scotch Whisky as a premium product. This unfair competition, alongside the 150% tariff and combined with the complexity of exporting whiskies into India, meant that many Scotch Whisky producers are unable to enter this important market. Breaking down these barriers to trade in India could open up huge opportunities for Scotch Whisky exports. 

The Scotch Whisky industry & a UK-India Free Trade Agreement

India is the Scotch Whisky industry’s number one priority market, and a UK-India trade deal has the potential to increase Scotch Whisky exports to the country by up to £1bn over the next 5 years.

Reducing the 150% tariff on Scotch Whisky could make it more affordable in India, while still remaining a high-end, premium product. If the tariff were liberalised, Scotch Whisky’s market share could double to 6%, giving greater access to Scotch Whisky products for Indian consumers but still allowing Indian whiskies and other spirits to retain the dominant share of the market.

Good for Scotland and the UK

Many more Scotch Whisky companies – including smaller and independent producers – could gain access to the Indian market to sell their whiskies under the FTA announced in Spring 2025. Boosting access to the Indian market could secure jobs and investment in the Scotch Whisky industry across Scotland into the future. The industry’s contribution to the economy could rise by up to £300 million to nearly £6bn.

Higher exports mean higher production - there could mean a significant impact into our supply chain too, in Scotland and across the UK, also growing jobs and investment.

Good for India

Bringing down the 150% tariff on Scotch Whisky could increase Indian government tax revenue at federal and state level by up to £3.4 billion annually through an increase in sales.

Scotch Whisky would be able to compete fairly alongside Indian whiskies, which will continue to dominate the Indian whisky market.

Because a lot of the whisky exported to India is sent in bulk (some for bottling as Scotch Whisky, most for use in Indian whisky) bringing down the tariffs could also support domestic producers, reducing their costs and boosting employment in the Indian industry.

Good for business

Businesses of all sizes could stand to benefit from improved market access to Scotch Whisky's biggest market by volume. Take a look at some of our case studies, below.