Scotch prices have fallen in India for the first time after the India-UK Free Trade Agreement took effect. Diageo and Pernod Ricard passed lower import costs to consumers across major states. Consequently, prices dropped by 10-15%. Maharashtra, Rajasthan, Goa and Uttar Pradesh already show reductions for Johnnie Walker Black Label and J&B. Industry executives expect other states to follow. Pernod Ricard has also sought lower prices for Chivas, Ballantine’s and The Glenlivet. The trade agreement took effect on July 15. Since then, the two largest Scotch makers have announced their first major consumer cuts. These changes will show how much tariff savings reach whisky buyers across India.
Companies seek approvals from state excise authorities
Sandeep Arora, founder of Spiritual Luxury Living, discussed the FTA impact in an ET report. He said existing prices of “bottled-in-origin” brands would feel the agreement’s effect. Therefore, competition could change for Indian single malts and other whiskies. Arora added that price gaps, new launches and availability would shape India’s market. Before authorities approved revised rates, companies submitted reduction proposals to state excise departments. They also provided proof that the whisky came from the UK. People familiar with the matter said some states had approved these proposals.
Johnnie Walker Black Label and J&B become cheaper
Industry sources said a 750 ml Johnnie Walker Black Label now costs about ₹3,800. Earlier, the bottle cost ₹4,250. Meanwhile, J&B now sells for nearly ₹1,700, compared with ₹2,300 previously.
British whisky tariffs fall from 150% to 75%
Under the India-UK agreement, tariffs on British whisky fell from 150% to 75%. Therefore, the tariff rate effectively halved. The agreement will reduce this level further to 40% over the next 10 years. However, retail prices will not fall by the same proportion. Import duty forms only one part of final pricing. State excise duty, taxes, distribution costs and margins also influence consumer rates.
Diageo earlier estimated an average national reduction of around 7-9% for its bottled-in-origin Scotch portfolio. Larger cuts in some states reflect local pricing structures and commercial decisions, not only tariff changes. Moreover, these shifts could increase competition across India’s premium whisky market. Indian single malts in this segment include Amrut, Paul John and Rampur.
Indian whisky makers wait for a clearer market picture
Rakshit Jagdale, head of Amrut Distilleries, also commented in the ET report. He said the company had considered price changes to compete with these brands. However, Amrut will wait until after the festive season for a clearer market picture. Initial reductions are reaching some of India’s largest whisky markets. Maharashtra and Uttar Pradesh rank among major whisky-consuming states. Meanwhile, Maharashtra and Haryana remain important Scotch markets.
Pernod Ricard CEO Alexandre Ricard discussed the agreement in August. He said the company would make its brands “more relevant and affordable for consumers.” Additionally, the company plans new Scotch products from Britain and faster innovation.
