Whiskey, Scotch to Get Cheaper by ₹300/Bottle After India-UK FTA
India’s landmark free trade agreement with the UK has sent shockwaves through the liquor industry, with imports of whisky and gin set to become significantly cheaper. Under the new agreement, import duties on these spirits will be slashed from 150% to 75%, with plans to further reduce them to 40% over the next decade. While this news is being hailed as a major breakthrough for the industry, experts are cautioning that the actual price drop for consumers may be more modest than expected.
According to the agreement, the reduction in import duties is expected to lead to a decrease in prices for Indian consumers. However, industry insiders are warning that the impact of this reduction may be limited by high state-level taxes that remain unchanged. These taxes, which can range from 100% to 300% depending on the state, are a major contributor to the cost of liquor in India and are unlikely to be reduced anytime soon.
As a result, experts predict that the actual price drop for consumers may be limited to around ₹300 per bottle. This is a far cry from the 50% reduction in import duties that has been touted as a major benefit of the agreement. Nevertheless, even a modest price drop is expected to be welcomed by consumers and could give a boost to the Indian liquor industry.
The reduction in import duties is expected to have a significant impact on the Indian whisky industry, which has been struggling to compete with cheaper imports from the UK. Indian whisky makers have been calling for relief from the high import duties, which have made it difficult for them to compete with international brands. The new agreement is expected to provide a much-needed lifeline to the industry, allowing Indian whisky makers to compete more effectively with imported brands.
The agreement is also expected to benefit the Indian gin industry, which has seen a surge in popularity in recent years. Indian gin makers have been enjoying a reputation for producing high-quality spirits that are in high demand both domestically and internationally. The reduction in import duties is expected to make it easier for Indian gin makers to import ingredients and equipment, helping to drive innovation and growth in the industry.
The India-UK free trade agreement has been hailed as a major breakthrough for the liquor industry, and the reduction in import duties is expected to be a major boon for consumers. While the actual price drop may be more modest than expected, the agreement is still expected to have a significant impact on the industry. As the agreement takes effect, consumers can expect to see prices for whisky and gin come down, making it easier to enjoy their favorite spirits.
In conclusion, the India-UK free trade agreement has sent shockwaves through the liquor industry, with the reduction in import duties on whisky and gin set to make them cheaper for Indian consumers. While the actual price drop may be more modest than expected due to high state-level taxes, the agreement is still expected to have a significant impact on the industry. As the agreement takes effect, consumers can expect to see prices for whisky and gin come down, making it easier to enjoy their favorite spirits.
Source: https://trak.in/stories/whiskey-scotch-from-uk-will-be-cheaper-as-import-duty-reduced-by-50/
