The Confederation of Indian Alcoholic Beverage Companies (CIABC) has expressed concerns about India’s reduction of tariffs on UK spirits as part of the India-UK trade deal, announced on 6 May.
In a statement, the director general of the CIABC, Anant S Iyer, stated that the trade deal did not adequately represent the interests of India’s alcohol sector.
“While we are still awaiting the details of the Free Trade Agreement (FTA), it appears that the government has not fully considered the requests of the Indian alcoholic beverage industry,” said Iyer.
“We have consistently advocated for a fair playing field for Indian companies. We hope that the FTA includes the Minimum Import Price (MIP) to prevent dumping or under-invoicing, as well as the elimination of non-tariff barriers for better international market access for Indian alcoholic beverages.”
As part of the new trade agreement, tariffs on whisky and gin will be reduced by half to 75% from 150%, eventually dropping to 40% by the tenth year of the deal, according to the UK’s Department of Business and Trade.
The Scotch Whisky Association (SWA) reported that India was the largest export market by volume for Scotch whisky, with over 192 million bottles exported in 2024, representing a 14.6% increase from the previous year.
In terms of value, India ranked fifth in 2024 for Scotch whisky exports, with £248 million worth of exports sent to India, a 13.8% rise from 2023.
Soft drinks from the UK will face no tariffs under the deal, and access to ingredients produced in India will be enhanced, according to the UK’s Food and Drink Federation (FDF).
However, Iyer cautioned that Indian wine and spirits producers could be at risk if similar trade agreements are reached with other countries. He expressed concerns that the Indian alcohol industry, including the wine sector, could suffer negative consequences if duty reductions are implemented in trade deals with the EU, US, and other spirits and wine-producing nations.
The CIABC director general also warned the Indian government that without improved access to markets in the UK, EU, and Australia, it may fail to achieve its target of $1 billion in alcohol industry exports by 2030.
“India’s alcohol industry fears effect of tariff cuts for UK exports” was originally created and published by Just Drinks, a GlobalData owned brand.
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