The government will meet foreign and domestic liquor companies amid allegations that bulk Scotch whisky imports are being used to bypass higher tariffs under the India-UK trade agreement.
Highlights
- Government to hold talks with liquor companies on Monday over bulk Scotch imports.
- Indian industry seeks investigation into alleged misuse of import tariff concessions.
- Around 80% of Scotch whisky imports from Britain arrive in bulk.
- Indian investigators say bulk Scotch does not qualify for the 75% tariff.
- Domestic manufacturers warn that bulk imports could affect Indian liquor production.
- British liquor industry maintains that it is working with India to address concerns.
New Delhi, November 1, 2026: The Indian government will hold discussions with major domestic and international liquor companies on Monday as a dispute over bulk Scotch whisky imports intensifies. The talks follow concerns raised by Indian manufacturers about the eligibility of bulk Scotch imports for tariff concessions under the India-UK trade agreement.
According to a Reuters report, the government has initiated discussions after receiving complaints from domestic liquor manufacturers alleging that certain companies are taking advantage of tariff concessions intended for imported Scotch whisky.
Indian Liquor Industry Demands Investigation
The Confederation of Indian Alcoholic Beverage Companies (CIABC), representing several domestic liquor producers, has urged the government to investigate bulk Scotch imports.
The industry body has alleged that some companies are importing Scotch whisky in bulk and using it for products sold in the Indian market, potentially undermining domestic manufacturers.
CIABC has also raised concerns that importing finished products under the trade agreement could affect India’s domestic liquor production industry.
Around 80% of Scotch Imports Arrive in Bulk
According to the report, approximately 80% of Scotch whisky imported from Britain arrives in bulk quantities.
These imports are subsequently used by Indian companies for bottling and blending operations.
The controversy centres on whether bulk Scotch imports should qualify for the preferential 75% tariff under the India-UK trade agreement.
Indian investigators have reportedly taken the position that bulk Scotch imports do not qualify for the concession.
However, the British liquor industry has maintained that it is engaging with Indian authorities to address the concerns.
Government to Meet Liquor Companies
The government has scheduled discussions with industry representatives to examine the issue and seek clarification from companies involved in Scotch whisky imports.
Industry representatives have also raised concerns about the potential impact of lower import tariffs on domestic manufacturers.
The CIABC has argued that bulk imports could provide an unintended advantage to foreign liquor companies over Indian producers.
Global Liquor Companies Respond
Major international liquor companies, including Diageo and Pernod Ricard, have significant operations in India’s alcoholic beverages market.
The dispute comes as the Indian and British liquor industries seek to understand the practical implications of the bilateral trade agreement.
Industry representatives say they are working with government officials to resolve differences over tariff interpretation and implementation.
The upcoming discussions could play an important role in determining how bulk Scotch imports are treated under India’s trade framework.
