Daijiworld Media Network – New Delhi

New Delhi, Dec 4: India is set to become the world’s largest market for Scotch whisky, driven by growing disposable incomes and the expected reduction in import duty once the India-UK Comprehensive Economic and Trade Agreement (CETA) takes effect next year. The Scotch Whisky Association (SWA), which represents major global distillers including Diageo, Pernod Ricard, William Grant & Sons, Whyte & Mackay and Suntory Global Spirits, says the deal will pave the way for stronger business ties between the two countries.

SWA Chief Executive Mark Kent said the trade agreement, likely to be operational by mid-2026 after UK Parliamentary ratification, will not only make Scotch more affordable in India but will also generate employment and new investments across both nations. He noted that the impact will be felt across the value chain — from barley farms to bottling units, hospitality, tourism and skilled workforce development — benefiting people in the UK as well as India.

Kent highlighted India’s significance to Scotch makers, stating that it is already their largest market globally. He said the country’s booming economy and increasing purchasing power offer a tremendous growth opportunity, particularly as the Indian whisky industry is already twice the size of the Scotch industry.

The SWA expects Scotch prices in India to drop by 9-10% once the trade pact is in place, boosting demand and enabling Indian liquor manufacturers who import Scotch in bulk for blended beverages to improve quality by increasing Scotch content.

However, Kent reiterated the association’s firm stance on whisky maturity norms, refusing to recognise spirits aged less than three years as whisky under UK regulations. He said that any product failing to meet this standard cannot be labelled whisky in their markets.

Kent also pointed out that the upcoming trade environment will encourage newer Scotch brands to enter India and open the door for Indian companies to invest in distilleries in Scotland, marking a new phase of growth and collaboration within the industry.