Import of bulk Scotch-whisky from Britain in India increased by 1000%: After trade deal, import duty reduced from 150% to 75%, goods worth ₹ 117 crore were imported in August.

After the implementation of the Free Trade Agreement (FTA) between India and Britain, the import of bulk Scotch whiskey in the country has reached a record level. In August 2026, bulk Scotch whiskey imports increased by nearly 1,000% on year-on-year basis to $12.39 million i.e. Rs 117 crore.

Import duty reduced from 150% to 75%

Due to reduction in import duty, companies have started ordering larger shipments. The India-UK trade agreement came into effect from 15 July 2026.

Under this, the import duty on eligible Scotch whiskey was reduced from 150% to 75%. This sharp increase in bulk shipment has been seen only after this tariff cut.

Import of containers larger than 2 liters increased by 679%

Import of Scotch whiskey in containers with capacity more than 2 liters increased by about 679% to 2.5 million i.e. 25 lakh litres, as against 3.20 lakh liters in the same period a year ago. This makes it clear that this growth is not just due to prices but due to increase in imports.

Import of small bottles reduced by 30%

In contrast to bulk shipments, there was a decline in imports of Scotch whiskey in containers (bottles) of 2 liters or less capacity. In August, imports of this category declined by 30% year-on-year to $3.08 million i.e. Rs 29 crore, which was $4.39 million i.e. Rs 41 crore last year.

Its import volume has also declined by 30% from 5,71,449 units to 402,507 units. This shows that the initial impact of the tariff cut has been more on bulk shipments than on small bottles.

Growth of 349% in the first 5 months of FY 2027

In the first 5 months of the financial year 2026-27, the import of bulk Scotch whiskey has increased by about 349% compared to the same period last year.

Import of gin and rum also increased

Import of not only Scotch but other spirits from UK has also increased. Import of gin in containers of 2 liters or less increased by 150% in August to $0.84 million i.e. Rs 8 crore. Its import volume increased by 185% to 2,16,438 units. In the same category, import of rum has also increased by more than 147%.

Total alcoholic beverage imports increased by 7.2% in September

India’s total alcoholic beverage imports in September 2026 increased by 7.2% year-on-year to $40.43 million i.e. Rs 382 crore. During this period, the total import volume has increased by 335.3%. However, commodity-wise data for Scotch whisky, gin and rum has not been released for the month of September.

Controversy regarding classification of bulk scotch

Amid the surge in bulk Scotch imports, a controversy has arisen over the classification of these shipments under the Harmonized System of Nomenclature (HSN). This has raised the question whether bulk imports should benefit from concessional rates under the trade pact or not.

Commerce Ministry’s assurance: Concession will continue

On November 2, the Commerce Ministry assured liquor manufacturers that steps were being taken to resolve disputes over classification of bulk Scotch whiskey imports and maintain the benefits of the trade agreement.

Commerce Secretary Rajesh Aggarwal held a meeting with representatives of domestic and multinational liquor companies. He said that the ministry will work closely with the Finance Ministry to resolve this issue so that the business of the companies continues without any hindrance.

Duty will reduce by 40% in 10 years

The main bone of contention is whether bulk Scotch imported for blending and bottling in India should be eligible for concessional tariff or not. Under the trade agreement, the import duty on Scotch whiskey has been reduced to 75% with plans to bring it down to 40% over the next 10 years.

What is the HSN Code and Bulk Scotch controversy?

Harmonized System of Nomenclature (HSN): It is an international code of 6 to 8 digits, which is used by customs and tax departments around the world to identify products and determine the tariffs applicable to them.

Reason for dispute: The trade deal reduced the tariff on Scotch from 150% to 75%. But confusion arose at Customs over whether the exemption would apply only to packaged bottles sold directly or also to bulk Scotch brought into India for bottling and blending. The Commerce Ministry has clarified that the domestic industry processing in India will also be provided this benefit.

Read this news also…

UK’s whiskey, cars and beauty products will be cheaper: Free trade agreement between India and UK comes into effect from today, know the prices of which things will change

UK cars, whiskey, clothes and footwear will be available cheaper in India from today. The Free Trade Agreement between India and UK has come into effect from today. That means now 99% of India’s goods will be exported to UK at zero tariff. Whereas 99% of UK goods will be imported at 3% average tariff. Read the full news…