Bulk Scotch whisky imports from Britain-India rise by 1000%:Trade deal halves import duty to 75%; August imports reach ₹117 crore

After the free trade agreement (FTA) between India and the United Kingdom came into force, the country’s imports of bulk Scotch whisky reached a record high. In August 2026, bulk Scotch whisky imports rose by around 1,000% year on year to $12.39 million, or ₹117 crore. Import duty cut from 150% to 75% Companies have begun ordering larger shipments following the reduction in import duty. The India-UK trade agreement came into effect on 15 July 2026. Under the agreement, the import duty on eligible Scotch whisky was reduced from 150% to 75%. This sharp increase in bulk shipments came after the tariff cut. Imports in containers larger than 2 litres rose 679% Scotch whisky imports in containers with a capacity of more than 2 litres rose by around 679% to 2.5 million litres, or 25 lakh litres, compared with 3.20 lakh litres during the same period a year earlier. This makes it clear that the growth was driven not only by prices but also by an increase in imports. Imports in small bottles fall 30% Unlike bulk shipments, imports of Scotch whisky in containers (bottles) with a capacity of 2 litres or less declined. Imports in this category fell 30% year on year in August to $3.08 million, or ₹29 crore, from $4.39 million, or ₹41 crore, last year. Import volumes also fell 30%, from 5,71,449 units to 4,02,507 units. This indicates that the initial impact of the tariff cut has been greater on bulk shipments than on small bottles. Growth of 349% in the first five months of financial year 2027 In the first five months of financial year 2026-27, imports of bulk Scotch whisky rose by around 349% compared with the same period last year. Imports of gin and rum also rose Imports of spirits other than Scotch from the UK also increased. In August, imports of gin in containers of two litres or less rose by 150% to $0.84 million, or ₹8 crore. Import volume increased by 185% to 2,16,438 units. Imports of rum in the same category also rose by more than 147%. Total alcoholic beverage imports rose 7.2% in September India’s total alcoholic beverage imports rose 7.2% year on year to $40.43 million, or ₹382 crore, in September 2026. Total import volume rose by 335.3% during the period. However, commodity-wise data for Scotch whisky, gin and rum for September have not been released. Dispute over classification of bulk Scotch Amid a surge in bulk Scotch imports, a dispute has arisen over the classification of these shipments under the Harmonised System of Nomenclature (HSN). This has raised the question of whether bulk imports should receive concessional rates under the trade pact. Commerce Ministry assures: Concession to continue On 2 November, the Commerce Ministry assured liquor manufacturers that steps were being taken to resolve disputes related to the classification of bulk Scotch whisky imports and ensure that the benefits of the trade agreement continue. Commerce Secretary Rajesh Agrawal held a meeting with representatives of domestic and multinational liquor companies. He said the ministry would work with the Finance Ministry to resolve the issue so that the companies’ businesses could continue without disruption. Duty to fall by up to 40% over 10 years The main issue is whether bulk Scotch imported for blending and bottling in India should be considered eligible for the concessional tariff. Under the trade agreement, the import duty on Scotch whisky has been reduced to 75%, with plans to bring it down to 40% over the next 10 years. What is the HSN code and the bulk Scotch dispute?