‘India set to become world’s largest Scotch whisky market’

• India set to become the largest global Scotch whisky market by value and volume.
• Scotch Whisky Association exploring partnerships with Indian single malt producers.
• UK-India FTA to reduce whisky import tariffs from 150% to 40% over a decade.
• India already the top Scotch whisky market by volume, with 192 million bottles exported in 2024.

India is on track to become the world’s largest market for Scotch whisky in both value and volume over the next few years, driven by economic growth, rising competition, and the trend of premiumisation, according to Mark Kent CMG, Chief Executive of the Scotch Whisky Association (SWA).

Kent, who was part of British Prime Minister Keir Starmer’s business delegation to India in October, said the association is also exploring partnerships with Indian single malt producers to collaborate not only for the UK market but also for exports to other global destinations.

“There is an opportunity for Indian companies to boost exports of Indian single malt to the UK and forge partnerships for global markets. So, it really is a moment of opportunity to be seized by both sides,” Kent told PTI.

He added that he plans to meet members of the Indian Malt Whisky Association, noting that both industries share a focus on quality and sustainable growth. “We have a shared view on the importance of quality in manufacturing and working together,” he said.

India regains top spot in Scotch whisky exports by volume

According to SWA data, India has regained its position from France as the world’s number one Scotch whisky export market by volume, with 192 million bottles shipped in 2024. The United States remains the largest market by value at £971 million.

#DidYouKnow: India is the world’s largest whisky market?

Alongside ISWAI and UKIBC, this week the SWA has met with Indian Government officials, Indian industry and British High Commission officials across Delhi and Hyderabad to continue building relationships and supporting… pic.twitter.com/NKPaFxHdOk

— Scotch Whisky Association (@ScotchWhiskySWA) November 7, 2025

Kent said India is already the biggest market for Scotch in volume terms among 180 destinations, and ranks among the top five by value. “If you add to that the growth we are seeing in the Indian market and a more competitive environment for Scotch imports, I think it’s very feasible that India will soon be the biggest for both volume and value,” he said.

He added that India’s strong consumer awareness of Scotch and whisky makes it a promising long-term partner. “That’s why we want to be working in conjunction with you to become global players on both sides,” Kent said.

FTA to open new opportunities for Scotch and Indian whisky makers

The proposed UK-India Free Trade Agreement (FTA) is expected to give a further boost to the industry by reducing import tariffs. The deal, signed in London and awaiting ratification, will see India cut duties on UK whisky and gin from 150 per cent to 75 per cent initially, and further to 40 per cent over the next ten years.

Kent said the FTA will allow a wider range of Scotch whiskies, including from smaller Scottish producers, to enter the Indian market. “It is also a good result for the Indian industry, as we will see more investment in both India and Scotland,” he said.

He pointed out that the tariff reduction on bulk whisky — which makes up 79 per cent of Scotch exports to India — will make imports cheaper and more competitive for Indian manufacturers blending Scotch into IMFL (Indian Made Foreign Liquor).

“Overall, it’s a very good basis for a new era of partnership between our two industries,” Kent added.

Industry optimism amid pricing and regulatory challenges

Kent expressed confidence that the FTA will make Scotch whisky more accessible and boost sales, though he noted that pricing will still depend on state-level taxes and regulations.

“You will see a reduction in the cost to consumers, but it will depend on individual states and companies,” he said.

He also said the SWA is willing to work with Indian authorities and trade bodies to create a regulatory framework that benefits both sides. “The trick is finding the right regulatory and tax framework that enables market pricing, which in turn will bring more investment, more trade, and more excise revenue to the individual states,” he said.

Kent said the association is committed to building long-term industry partnerships and ensuring that the benefits of the trade agreement translate into tangible outcomes. “Our challenge now is to turn what is a very good framework, as set out by the FTA, into business reality and business outcomes,” he added.

(With inputs from news agencies)