Skip to content
Search

Latest Stories

Trade talks with India: Whisky tariff to be hot topic

The UK wants India to drastically lower tariffs on its whisky exports, currently as high as 150 per cent. A breakthrough could lead to a manifold increase

Trade talks with India: Whisky tariff to be hot topic

WHEN the UK-India free trade agreement (FTA) negotiations gather steam after the July 4 general election, whisky tariffs will be one of the important issues.

The UK wants India to drastically lower tariffs on its whisky exports, currently as high as 150 per cent.


Tariffs have been a major stumbling block during 14 rounds of talks that three Conservative prime ministers have tried in vain to succeed.

India is the world’s largest whisky market and Scotch brands such as Ardbeg and Glenfiddich are considered an expensive indulgence due to high tariffs.

However, overall whisky consumption has increased in recent years, bolstered by the increased spending power of the Indian middle class.

UK's whisky exports to India were worth £218 million last year, an increase of 113 per cent from 2020, The Times reports.

It is the second-largest export destination by volume after France, but premium Scotch makes up only 3 per cent.

The biggest challenge the distillers face is an import tariff of 150 per cent, plus state duties that can be nearly as high — making them prohibitively expensive.

The deal is expected to be a top priority for the new incoming UK government, most probably Labour headed by Sir Keir Starmer.

According to the Scotch Whisky Association (SWA), greater access to the Indian market could boost sales in India nearly fivefold to more than £1 billion, creating up to 1,300 jobs.

They feel India will also benefit as increased sales would boost federal and state revenues by £3.4 billion annually.

SWA chief executive Mark Kent noted that the Indian market was of vital importance to Scotch whisky as exports have surged by more than 200 per cent in the past decade.

Lure of Scotch

The prospect of a more affordable premium Scotch has also excited its Indian users, which has grown steadily since the British Raj days.

By the turn of the previous century, Scotch was a staple in British clubs and officers’ messes, but Indians preferred locally distilled brew.

To popularise it among Indians, William Grant, founder of the distillery that produces Glenfiddich, dispatched his son-in-law in 1909 to India.

Magandeep Singh, author of The Indian Spirit : The Untold Story of Drinking in India, told The Times that Indians with British connections started drinking whisky, attracted by its association with power and prestige. It soon became an “aspirational” drink, a sign of upward social mobility, he added.

When India attained independence in 1947, many British legacies were cast aside, but the allure of Scotch remained strong.

The drink was popularised in Bollywood films. Since 2000, the expanding middle class with more purchasing power became its major clientele.

Currently in India, cheaper blended whisky is the choice of many. They are often made from molasses and matured for only 12-18 months. They are not classified as whisky elsewhere.

This is another sticking point in the trade negotiations. British and European criteria require that whisky must be matured in a wooden cask for at least three years.

But Indian distillers argue that India's warmer climate leads to faster maturation and want such drinks to be marketed as whiskies in the UK and EU.

Rishi Sunak also pushed hard for a deal in meetings with Modi but failed.

More For You

Sri Lanka forms committee to address UK sanctions
Anura Kumara Dissanayake

Sri Lanka forms committee to address UK sanctions

THE Sri Lanka government on Wednesday (2) formed a committee to recommend measures regarding the UK's decision to impose sanctions on three former military commanders who led the campaign that crushed the Liberation Tigers of Tamil Eelam (LTTE) in 2009.

Health minister Nalinda Jayatissa told reporters that foreign minister Vijitha Herath, justice minister Harshana Nanayakkara and deputy minister of defence Aruna Jayasekara would comprise the committee that would consult experts for the purpose.

Keep ReadingShow less
Gujarat-blast-ANI

The blast caused the factory’s concrete roof to collapse, scattering debris and body parts across the area, officials confirmed. (Photo: ANI)

ANI

Death toll rises to 21 in Gujarat firework factory explosion

AN EXPLOSION at an illegal firecracker factory in Gujarat's Deesa town killed 21 people and injured several others on Tuesday, officials said.

The blast caused the factory’s concrete roof to collapse, scattering debris and body parts across the area, officials confirmed.

Keep ReadingShow less
Child benefit payments set to rise for UK families

Child benefit, normally paid every four weeks directly into bank accounts, has undergone significant changes in recent months (Photo: Getty Images)

Child benefit payments set to rise for UK families

MILLIONS of British families are set to receive a financial boost as child benefit payments increase from April 7, according to HM Revenue and Customs (HMRC).

From next week, parents will receive £26.05 per week for the eldest or only child, amounting to £1,354.60 annually - up from the current rate of £25.60. For each additional child, payments will rise to £17.25 weekly, totalling £897 per year - an increase from the present £16.95 rate. This represents a 1.7 per cent increase across all payment categories.

Keep ReadingShow less
Anant Ambani Walks 140 Km in Spiritual Tribute on 30th Birthday

Anant’s padyatra is a reflection of the larger cultural fabric of India

Getty

Anant Ambani embarks on a 140-kilometer spiritual journey on foot to celebrate 30th birthday

Anant Ambani, a director of Reliance Industries Limited and a prominent figure in Indian industry, has chosen a unique and spiritual way to mark his 30th birthday. As part of his celebrations, he is currently undertaking a padyatra—a traditional pilgrimage on foot—from Jamnagar to Dwarka, covering a distance of approximately 140 kilometres. The journey reflects his devotion to Lord Dwarkadhish, the presiding deity of the Dwarkadhish Temple in the city of Dwarka.

Anant began his journey from his family’s residence in Moti Khavdi, Jamnagar, and has been progressing steadily for the past five days. Walking an estimated 10-12 kilometres each night, he travels under the protection of Z+ security and local police, ensuring his safety during this significant journey. The padyatra is expected to take between seven to nine days in total, with plans to conclude at the Dwarkadhish Temple in time for his birthday on April 10.

Keep ReadingShow less
New TB action plan proposed as cases surge

Government urged experts to come forward to help draw up a new five-year TB action plan. (Photo: Getty Images)

New TB action plan proposed as cases surge

BRITAIN on Wednesday (2) urged health experts and sufferers of tuberculosis (TB) to come forward to help draw up a new five-year action plan as it deals with record rises in the disease.

In 2023, England recorded its largest annual increase (11 per cent) in cases since enhanced surveillance began in 2000.

Keep ReadingShow less