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The duty cut under the India-UK FTA is expected to lower retail prices of imported Scotch whisky

ICICIdirect Research 30 Sep 2026 DISCLAIMER

News: As per media reports, the duty cut under the India-UK FTA is expected to lower retail prices of imported Scotch whisky by 10–15%, with brands such as Johnnie Walker Black Label and J&B already witnessing price reductions across select states. The pact has reduced import duty on British whisky to 75% from 150%, with a further reduction to 40% over the next 10 years. The price reduction is primarily expected in the Bottled-in-Origin (BIO) Scotch segment, where whisky is bottled in Scotland and imported into India, while a significant portion of Scotch imports also comes in bulk for blending and bottling in India.

View: We believe the impact on the mass and mid-premium IMFL segments will remain limited, given the significant price differential with imported Scotch (almost 3x in some brands). The impact is likely to be largely confined to the luxury/super-premium segment, where the presence of companies under our coverage, such as Radico Khaitan and Allied Blenders & Distillers, is growing but remains limited. Further, lower Scotch prices should reduce input costs for IMFL manufacturers using imported Scotch for blending, providing scope for margin accretion over the coming years.

Impact: Negative

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