Import of bulk Scotch to increase, FTA to also benefit IMFL industry: Scotch Whisky Association

New Delhi, Nov 7 (PTI) Import of bulk Scotch will increase in India after signing of Free Trade Agreement with the UK, which will be used by IMFL makers and bottling in India, according to Scotch Whisky Association Chief Executive Mark Kent CMG.

The FTA between India and the UK, which is awaiting ratification, will also see a variety of quality Scotch whisky coming into the country, especially from some of the smaller producers from Scotland, Mark Kent told PTI in an interview.

"You will see more bulk whiskey coming into India as a result of the free trade agreement, both for bottling in India, and for incorporating into IMFL (India-Made Foreign Liquor)," he said.

This is normal, because as the Indian market is growing year-on-year, the increasing demand will see greater quantities being imported, Mark Kent said.

He is quite encouraged by the trend of premiumisation happening in India, the world's largest whisky market and is "optimistic" for the prospects of Scotch whisky here.

India is the world's number one Scotch whisky export market by volume, with 192 million bottles exported in 2024. However, in terms of value it is among the top five.

As per the FTA signed in London between the two governments, India is reducing duty on UK whisky and gin from 150 per cent to 75 per cent and further to 40 per cent in the 10th year of the deal.

On the FTA, Mark Kent said it marks a "new era in partnership between our industries between our countries".

"We are looking forward now to building on that framework, which has been set by the two governments to work on the industry collaboration," he said.

This will help in bringing down the price as customs tariff has come down on bulk whiskey, which is 79 per cent of all whiskey that Scotland exports to India.

This "means that 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," he said.

On the competition faced by Scotch whisky in the Indian premium side of spirits by Bourbon and Japanese Whisky, which are gaining traction, Mark Kent said, "We welcome that".

According to Mark Kent, Scotch is a "long acquaintance of Indian consumers".

Earlier this year, India also reduced import duty on Bourbon to 100 per cent from 150 per cent.

"We are a small part of the Indian market, so somewhere around 2.5-3 per cent of the market at the premium end, we welcome that. There is a greater choice for consumers, whether that be more Scotch whiskey coming in or other types of whiskey," he said. PTI KRH TRB