After investigating Diageo and Pernod, New Delhi assured the industry that bulk whisky will get the 75% tariff set in its deal with the United Kingdom
The government of India has assured drinks industry representatives that bulk Scotch imports will also qualify for the reduced 75% tariff set out in its trade agreement with the United Kingdom. Commerce ministry officials gave the assurance at a closed-door meeting with industry executives, according to Reuters, as reported by The Drinks Business on November 3 and by The Spirits Business on November 4.
The case follows the dispute Bebidário reported in October: Indian tax officials were investigating Diageo and Pernod Ricard and argued that only whisky bottled at origin qualified for the cut. For bulk whisky, they wanted a new classification, subject to the old 150% tariff.
The India-UK agreement came into force on July 15 and lowered the tariff on Scotch from 150% to 75%, with a further reduction to 40% planned over ten years, according to The Spirits Business. Bulk accounts for around 80% of the volume of Scotch entering the country. It is diluted and blended with local spirits in IMFL (Indian-made foreign liquor) brands, a segment dominated by Pernod Ricard and Diageo. Pernod's Royal Stag and Diageo India's McDowell's each sold more than 30 million nine-liter cases in 2025.
Indian producers such as Radico Khaitan and Allied Blenders and Distillers also asked for the lower tariff on bulk imports, according to The Drinks Business. The Confederation of Indian Alcoholic Beverage Companies argued that a heavier burden on IMFL would favor imported bottled whiskies, whose retail prices fell by up to 15% after the tariff cut.
There is no date for the change to take effect, and it is not known whether it will apply retroactively to imports made since July 15. Neither the companies nor the ministry have commented publicly on the outcome of the meeting, according to The Drinks Business.
Scotch exports to India totaled £286 million in 2025, according to The Spirits Business. The Scotch Whisky Association estimates the agreement could add US$ 1.34 billion to those sales over five years, according to The Drinks Business.
Bebidário's catalog includes blends from both companies involved, such as Diageo's Johnnie Walker Red Label, and Pernod Ricard's Chivas Regal 12 Year Old and Ballantine's Finest.
Sources: The Drinks Business (November 3, 2026), The Spirits Business (November 4, 2026).
