CIABC Welcomes India-UK Trade Deal

The Confederation of Indian Alcoholic Beverage Companies (CIABC) welcomed the India-UK trade agreement that came into effect on 15 July 2026. The India-UK Comprehensive Economic and Trade Agreement (CETA) is a Free Trade Agreement (FTA) between India and the United Kingdom and covers trade in goods, services, investment, and regulatory cooperation.

India-UK Trade Agreement

The India-UK CETA aims to raise bilateral trade from USD 60 billion to USD 100 billion over time. The agreement gives nearly 99% of India’s exports zero-duty access to the UK market. CIABC Director General Anant S Iyer stated on 16 July 2026 that the agreement creates opportunities for the alcoholic beverage industry in India and the United Kingdom. The deal also covers technical know-how, best practices, and investment flows between the two countries.

Scotch Whisky Duty Changes

The agreement reduced import duty on Scotch whisky from 150% to 75% with effect from 15 July 2026. The duty is scheduled to fall further to 40% over 10 years. The Scotch Whisky Association has estimated that exports of Scotch to India may rise by £1 billion, or US$1.34 billion, over the next five years. India is one of the largest markets for Scotch whisky in Asia.

Indian Alcoholic Beverage Industry

CIABC said lower import duties on Scotch whisky can help Indian alcobev manufacturers manage input costs. The industry has faced higher dry goods costs, logistics expenses, and rupee devaluation. CIABC also asked Indian states to withdraw tax and regulatory concessions for bottled-in-origin imported spirits. Bottled-in-origin spirits are alcoholic beverages bottled in the country of origin before export, while Indian-Made Foreign Liquor (IMFL) is manufactured and bottled in India under foreign or domestic brands.

Important Facts for Exams

• The Confederation of Indian Alcoholic Beverage Companies is an industry body representing alcoholic beverage companies in India.
• Scotch whisky is a protected geographical indication product associated with Scotland.
• Free Trade Agreements usually reduce tariffs and can include rules on services, investment, and standards.
• Indian-Made Foreign Liquor is a major category in India’s alcoholic beverage market.

The India-UK Comprehensive Economic and Trade Agreement came into effect on 15 July 2026. Nearly 99% of India’s exports receive zero-duty access to the UK under the agreement.