- India says it will honour Scotch duty cuts under the UK trade deal
- Dozens of containers of bulk Scotch held at Indian ports
- Customs investigators sought 150 per cent duty instead of the agreed 75 per cent
- Scotch exports to India worth about £250 million in 2024
INDIA will honour the duty concessions on Scotch whisky offered as part of its trade deal with Britain, Indian Trade Secretary Rajesh Agrawal said on Friday.
He said India’s finance ministry had engaged with stakeholders on the issue of bulk Scotch imports from Britain.
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His comments come amid a dispute over dozens of containers of bulk Scotch held at Indian ports. Customs investigators have sought a 150 per cent import duty, despite the trade deal providing for a reduced rate of 75 per cent.
The row has raised concerns over the implementation of the India-UK trade deal, which came into force in July.
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Bulk Scotch is a crucial part of the business in India because it is blended with other spirits to make Indian-Made Foreign Liquor (IMFL), which includes many popular whisky brands.
Scotch exports to India were worth $335 million (about £250 million) in 2024, and the Scotch Whisky Association has forecast the deal could add $1.34 billion (about £1 billion) over five years.
(With inputs from Reuters)
