Scotland Raises Concerns Over India’s Scotch Whisky Tariff Rules

Scotland’s First Minister John Swinney raised concerns over India’s treatment of bulk Scotch whisky imports during his visit to the country from October 20 to 27. The Scottish government confirmed that discussions with Indian ministers included the implementation of the UK-India free trade agreement, particularly the tariff rules affecting bulk Scotch whisky exports.

Under the trade agreement, which came into effect in July 2026, India agreed to reduce import duties on certain Scotch whisky products from 150% to 75% immediately, with a further reduction to 40% over the next 10 years. However, Indian investigators have reportedly indicated that the lower tariff does not apply to bulk Scotch whisky concentrates, creating a dispute over the agreement’s interpretation.

Indian tax authorities are investigating whether Pernod Ricard and Diageo incorrectly classified certain bulk Scotch whisky imports to benefit from reduced tariffs. The issue has become the first major trade dispute since the agreement took effect. While trade policy remains under the British government’s authority, Swinney has pledged to work towards ensuring Scottish exporters receive the full benefits of the trade deal.

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