India pledges to honour Scotch tariff cuts under UK trade deal

Indian authorities have conveyed to liquor industry stakeholders that tariff reductions on bulk Scotch imports will be honoured as stipulated under the India-UK free trade agreement, officials familiar with the matter said. The assurance addresses concerns among domestic spirits producers regarding the competitive impact of lower duty rates on Scottish whisky entering the Indian market.

The India-UK trade pact, which came into effect following months of negotiations, includes provisions for reduced tariffs on select alcoholic beverages. The clarification from the government underscores its commitment to implementing the agreement's terms, though the full scope of tariff relief remains subject to ongoing regulatory processes.

The dispute over bulk Scotch imports has been a persistent irritant in India-UK trade relations, with domestic liquor companies expressing concerns about pricing pressures from cheaper foreign spirits. UK exporters, meanwhile, have sought easier market access for premium Scottish whisky in India's growing spirits sector.

Industry observers said the government's latest statement could facilitate smoother trade flows while allowing domestic producers time to adjust to increased competition. The move reflects New Delhi's broader commitment to honouring commitments under bilateral trade agreements while balancing domestic industry concerns.