India to become world’s largest scotch whisky market after UK trade deal – SWA 

INDIA – India is poised to overtake all other countries as the largest market for Scotch whisky, driven by rising incomes and lower import duties under the forthcoming India-UK Comprehensive Economic and Trade Agreement (CETA), according to the Scotch Whisky Association (SWA). 

Mark Kent, chief executive of the SWA, representing Diageo, Pernod Ricard, William Grant & Sons, Whyte & Mackay and Suntory Global Spirits, said the pact, expected to take effect mid-2026 after UK parliamentary ratification will significantly reduce prices and stimulate demand. 

“India is already the biggest whisky-drinking nation in the world and the most important export market for Scotch. With this agreement, India will become the largest Scotch whisky market globally,” Kent stated. 

The SWA forecasts a 9–10% drop in retail prices for bottled Scotch in India once duties fall. Lower tariffs will also benefit Indian producers of Indian-made foreign liquor (IMFL) by making bulk Scotch imports cheaper, enabling them to incorporate higher proportions of genuine Scotch and raise product quality. 

Kent emphasised that economic gains will extend far beyond distilleries. Increased Scotch sales will drive barley demand on UK and Indian farms, expand bottling operations, and boost hospitality and whisky tourism in Scotland while creating jobs across both countries’ supply chains. 

The agreement is also expected to encourage newer Scotch brands to enter India and prompt Indian companies to invest in Scottish distilleries, fostering deeper bilateral partnerships. 

Despite the optimism, the SWA maintains its firm stance against recognising spirits matured for less than three years as whisky, in line with UK legislation. “If it doesn’t meet our domestic parameters, it can’t be called whisky,” Kent reiterated when asked about longstanding requests from Indian distillers. 

Currently, Scotch exports reach 180 markets worldwide, but India’s sheer volume, with its domestic whisky industry already twice the size of Scotland’s, makes the market uniquely strategic.  

The trade deal is seen as a catalyst to unlock further growth for premium and super-premium Scotch categories while strengthening commercial ties across the entire whisky value chain in both nations. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.