Whisky import duty halved overnight in deal with a major whisky nation

Friday, 17 July 2026 at 08:24

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Import duties on whisky are a recurring topic, and usually not in a good way. This time, there’s welcome news: starting this month, Scotch whisky can be exported to India at a much better rate. The sky‑high import duty on Scotch heading to India has been cut in half with immediate effect. That dramatically changes the outlook for whisky brands partnering with India.

Whisky import duty now in effect

Until now, India levied a staggering 150 percent import duty on Scotch whisky. That rate has been lowered to 75 percent. Suddenly, shipping whisky from Scotland to India looks far more attractive. For Scotch producers, that’s a major win.

This shift could also make Scotch more appealing to Indian importers, retailers, bars, and whisky enthusiasts. Producers hope to see many more bottles of Scotch sold in India over the coming years. The new agreement alone could contribute around £190 million to Scotland’s economy. Beyond the numbers, it’s expected to boost jobs, investment, and whisky production.

A 75 percent tariff is still high, but it’s a world apart from where it was. And it won’t stop there: over the next 10 years the rate is set to drop further to 40 percent.

India is a whisky powerhouse

By volume, India is the largest market for Scotch whisky in the world. In 2025, roughly 286 million pounds worth of Scotch made its way to the country, amounting to the equivalent of around 220 million 700‑milliliter bottles.

With duties now significantly lower, exports can scale up further. That’s especially promising for producers of blended Scotch and single malt looking to claim a larger slice of India’s fast‑growing market.

Pernod Ricard is bullish

Pernod Ricard has also welcomed the development. The drinks group’s portfolio includes well‑known whisky brands like The Glenlivet, Aberlour, Chivas Regal, Ballantine’s, and 100 Pipers, making this a major opportunity.

Nodjame Fouad, CEO of the Aged Spirits and Champagne division at Pernod Ricard, sees significant upside for the entire sector.

'Opening up the Indian market represents a tremendous opportunity for the United Kingdom as the world’s largest exporter of spirits. It also provides a timely boost for the Scotch whisky industry. These agreements support Scotland’s export ambitions, strengthen the sector in a key international market, and highlight how much our industry contributes to jobs, investment, and economic growth in Scotland and across the UK.'

Fouad also thanked the UK and Indian governments for reaching the agreement. Pernod Ricard plans to fully capitalize on the new possibilities.

Indian single malt stands to gain, too

Interestingly, several Indian whisky producers are also optimistic. The influx of international whisky brands can spark consumer curiosity about single malt—ultimately benefiting local labels as well.

India is meanwhile working on stricter quality standards and its own certification mark for authentic Indian single malt. That will make the market not only bigger, but also more professional.

Lower duties could mark the start of an exciting new chapter for both Scotch and Indian whisky.