In the recently finalized India-UK Free Trade Agreement (FTA), India has opted to exclude UK wines from immediate duty reductions, while offering limited concessions on beer imports.
This decision underscores India’s cautious approach to protecting its domestic alcoholic beverage industry amid evolving trade dynamics.
Despite the UK’s push for broader market access, India has maintained existing import duties on UK wines, citing the need to safeguard its burgeoning domestic wine industry.
The agreement outlines a gradual reduction of import duties on Scotch whisky, decreasing from the current 150% to 75% over a decade. This move aims to balance UK export interests with the protection of Indian spirits producers.
India has agreed to modest concessions on beer imports, though specific details remain under negotiation. The intent is to provide UK brewers with some market access without significantly impacting local beer manufacturers.
The Confederation of Indian Alcoholic Beverage Companies (CIABC) has expressed cautious approval of the phased approach. CIABC Director General Anant S. Iyer emphasized the importance of protecting Indian manufacturers from potential market disruptions and advocated for better access for Indian products in the UK.
Similarly, the International Spirits and Wines Association of India (ISWAI) highlighted that while reduced tariffs on Scotch whisky could benefit consumers through increased choices, it’s crucial to ensure that domestic industries are not adversely affected.
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