The recently signed India-United Kingdom Free Trade Agreement (FTA) is set to bring down import duties on premium spirits, including whisky and gin, paving the way for potentially lower prices of international liquor brands in India. However, industry experts believe the price drop may be limited, with reductions estimated at around ₹300 per bottle.
Finalised after over three years of negotiations, the landmark trade agreement was signed in London on Thursday by Indian Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds during Prime Minister Narendra Modi’s visit to Britain.
Under the terms of the FTA, India will slash the existing 150% import duty on British whisky and gin to 75%, with a further reduction to 40% over the next decade. The move is expected to enhance bilateral trade between the two countries by $35 billion in the long term.
Despite the duty cut, experts have cautioned that other cost factors such as state taxes and distribution margins may temper the overall benefit to consumers. Nonetheless, the deal marks a significant step in strengthening economic ties between India and the UK.
(This story is published from a syndicated feed)