India Set to Become World’s Largest Scotch Whisky Market
India is positioned to become the world’s largest Scotch whisky market in both volume and value within the next few years, according to Scotch Whisky Association Chief Executive Mark Kent CMG. This growth is driven by premiumisation trends, competitive market dynamics, and India’s strong economic expansion.
Key Takeaways
- India already leads in Scotch whisky import volume globally
- Free Trade Agreement with UK will reduce tariffs from 150% to 75% initially
- Partnership opportunities emerging between Indian and Scottish whisky industries
- 192 million bottles of Scotch exported to India in 2024
Indian Single Malt Recognition
Mark Kent acknowledged the rising quality of India’s single malt whisky category, noting that some Indian brands have won prestigious international awards. The Scotch Whisky Association is seeking partnerships with Indian producers not just for UK exports but for global market expansion together.
“This is a significant opportunity for both the Indian and Scottish industries. There is an opportunity for Indian companies to boost exports of Indian single malt to the UK and forge partnerships for global markets,” Kent told PTI.
Current Market Position
India has reclaimed its position as the world’s top Scotch whisky export market by volume, surpassing France with 192 million bottles exported. However, in value terms, the United States remains the leader at £971 million in 2024, while India ranks among the top five.
FTA Impact and Opportunities
Once the India-UK Free Trade Agreement becomes operational, consumers can expect a wider variety of quality Scotch whiskies, particularly from smaller Scottish producers. The agreement will also reduce tariffs on bulk whisky imports, which constitute 79% of Scotch exports to India.
“The fact that the tariff has come down on bulk whiskey means there will be cheaper and more competitive imports for Indian manufacturers to incorporate into IMFL. So overall, it’s a very good basis for a new era of partnership between our two industries,” Kent explained.
Implementation Timeline
The FTA, signed in London and awaiting ratification, will gradually reduce import duties on UK whisky and gin from 150% to 75% initially, eventually reaching 40% by the 10th year of the agreement.
Kent, who visited India as part of British Prime Minister Keir Starmer’s delegation in October, emphasized the need to translate the FTA framework into tangible business outcomes. While acknowledging that state-level regulations will influence final consumer pricing, he expressed optimism about creating win-win scenarios for both nations’ whisky industries.
