The whisky deal helps almost everyone in India, except one group

Sunday, 26 July 2026 at 09:01

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The cut to India’s import duty on Scotch was widely reported as good news, but not everyone sees it that way. It’s a win for Scottish distilleries and for Indian blenders who buy Scotch in bulk. But for one group, it’s far less welcome: India’s single malt whisky makers.

The rise of Indian single malt has been one of the most striking shifts in the whisky world over the past decade. Brands like Amrut, Paul John, and Indri have won international awards and built a loyal following of whisky fans around the globe.

Look at India’s single malt sales and the scale of that success comes into focus. Of the roughly 675,000 cases of single malt sold in India in 2023, about 345,000 were made domestically, according to figures published by the Times of India. In the world’s largest whisky market, more than half of all single malt is now produced locally.

Why a lower import duty hits single malt hardest

That’s exactly the segment now potentially under pressure as India lowers import duties on Scotch. As of 15 July 2026, the duty has been halved to 75 percent, and over the next ten years it will fall further to 40 percent. Each year, the price gap between a bottle of Scotch and a bottle of Indian single malt will narrow. Not ideal for Indian whisky, though that’s not even the worst of it.

Indian blenders, meanwhile, stand to benefit significantly. They buy Scotch in bulk as an input and will see their procurement costs drop thanks to the new tariff. Indian single malt producers don’t buy anything from Scotland: they do everything themselves, from malting barley to bottling. For them, the deal brings no savings, only cheaper competition on the same shelf.

The stock market picked up on that instantly. Shares of several Indian drinks companies fell by as much as five percent on the day the deal was announced. Paul P. John, chairman of John Distilleries, warned that a sudden influx of cheaper Scotch could dent domestic sales.

Is Indian whisky in trouble?

Whether Indian whisky will truly be squeezed by this move remains to be seen. The real impact will only become clear in a few years, when the first shipments of cheaper Scotch hit the shelves and the duty falls further. Then we’ll know whether Indian single malt can stand tall on its own.

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FAQ

Why is the lower import duty bad for Indian single malt?
Producers of Indian single malt don’t import Scotch and therefore don’t benefit from the lower duty, while their imported competitors get cheaper.
How much single malt in India is Indian?
In 2023, more than half of all single malt sold was domestically made: about 345,000 out of 675,000 cases.
What is the IMWA seal?
A certification mark for authentic Indian single malt, with standards for raw materials, distillation, maturation, and provenance.