India: Scotch whisky prices drop up to 26% in India after UK FTA

Scotch whisky drinkers in India are beginning to see lower prices, with major brands including Johnnie Walker Black Label and J&B becoming cheaper by up to 26% in some states following the India-UK Free Trade Agreement (FTA), Acendants reported on October 2.

Diageo and Pernod Ricard, two of the largest Scotch whisky producers operating in India, have started adjusting prices after the trade agreement reduced import duties on British whisky. The first round of price cuts has already taken effect in Maharashtra, Rajasthan, Goa and Uttar Pradesh, with more states expected to follow.

The reductions range between 10% and 15% for several products, although individual brands have seen different levels of price changes depending on the state.

The revised prices have already made a noticeable difference to the cost of some popular imported Scotch brands.

Diageo’s 750-ml Johnnie Walker Black Label is now selling for approximately Rs 3,800, down from its earlier price of Rs 4,250. This represents a reduction of around 10.6%.

J&B has recorded a bigger price change, falling to approximately Rs 1,700 from Rs 2,300 previously. That translates into a reduction of nearly 26%.

These changes mark the first major consumer price adjustments by the two leading Scotch producers since the India-UK trade agreement came into force on July 15.

Pernod Ricard has also approached state governments for approval to reduce prices across brands such as Chivas, Ballantine’s and The Glenlivet.

The price reductions follow a major change in India’s import duty structure for British whisky.

Under the India-UK FTA, the import tariff on British whisky has been reduced from 150% to 75%. The duty is scheduled to fall further to 40% over the next 10 years.

However, the reduction in import duty does not translate into an equivalent drop in the retail price. The final cost of imported whisky also includes state excise duties, other taxes, distribution expenses and commercial margins.

Companies also need to follow state-level approval procedures before introducing revised prices. These include submitting pricing proposals to excise authorities and providing documents confirming that the whisky originates in the UK.

Some states have already cleared the proposed changes, allowing consumers to access the lower prices.

The arrival of cheaper imported Scotch could bring changes to India’s premium whisky market, particularly for domestic single malt producers.

Brands such as Amrut, Paul John and Rampur could face increased competition as the price difference between imported Scotch and Indian single malts becomes narrower.

Sandeep Arora, founder of Spiritual Luxury Living, said the UK trade agreement could influence the pricing of bottled-in-origin brands and change competitive dynamics for other whiskies, including Indian single malts.

He also pointed to price differences, the arrival of new whisky brands and product availability as important factors that could shape the Indian market.

Rakshit Jagdale, company chief at Amrut Distilleries, said the company had considered repricing its products to compete with imported brands. However, it plans to wait until after the festive season to get a clearer understanding of market conditions.

Although the import duty reduction applies under the trade agreement, consumers will not necessarily see identical price cuts across India.

Diageo had earlier estimated that prices across its bottled-in-origin Scotch portfolio could decline by around 7-9% on a nationally weighted average basis.

The larger reductions seen in certain states reflect differences in local pricing structures and individual commercial decisions. They should not be interpreted as a direct or uniform outcome of the 50% reduction in import duty.

Maharashtra and Uttar Pradesh are among India’s biggest whisky-consuming states, making them important markets for the initial rollout of revised prices.

Pernod Ricard CEO Alexandre Ricard had also indicated in August that the company intended to use the trade agreement to make its brands more affordable and relevant to Indian consumers. He also outlined plans to introduce new Scotch offerings and accelerate innovation from Britain.

With the first round of price reductions now reaching consumers, the impact of the India-UK FTA is beginning to extend beyond import duties. The coming months will offer a clearer picture of how much of the tariff savings companies are willing to pass on and how Indian premium whisky brands respond to the changing price gap.

02 October, 2026