Overview: Lower import duties and rising demand for premium spirits could propel India past the United States as the world’s largest Scotch whisky market by export value. According to the Scotch Whisky Association, exports to India reached £286 million in 2025, ranking third by value behind the U.S. and France. The Macallan, represented by Edrington India, sees significant opportunity as tariff reductions encourage consumers to trade up toward higher-end bottles.
The Full Story
Ian Duddy of the Scotch Whisky Association noted that exports totaled about 220 million bottles and have grown by 8% to 9% annually despite high import duties. The India-UK free trade agreement, effective July 15, cuts import duties from 150% to 75%, with a further reduction to 40% over the next decade. These lower duties could make imported Scotch more affordable and encourage consumers to buy higher-end bottles, though state taxes and distribution costs will influence final retail prices.
Scotch consumption in India increased 5.3% to 9 million cases in 2025, with Scotch gaining ground faster than the category overall. Paul Ross, chief executive of Edrington India, expects imported Scotch retail prices to fall by 7% to 10% as the lower duties reach consumers. Demand for 25- and 30-year-old expressions of The Macallan has exceeded expectations, with premium bottles increasingly appearing in consumers’ home bars.
What This Means
The tariff cuts between India and the U.K. have been important for the industry, though lower customs duties will not translate directly into equivalent retail price cuts because state excise duties, distribution costs and retailer margins also affect prices. About 80% of Scotch whisky exports to India are shipped in bulk, with the remainder sold in bottles. The trade agreement could encourage companies to invest in local bottling, warehousing and distribution as sales expand. Industry executives see rising incomes and consumers’ willingness to spend more on premium bottles as key drivers of future Scotch sales.
Consumer Takeaway
As import duties fall, the industry expects demand for both bulk Scotch and bottled whisky to rise. Whether India overtakes the U.S. in export value will depend on how quickly premium demand grows and how much of the tariff savings reaches consumers. State-by-state tax systems remain a challenge, with Haryana potentially reflecting duty cuts first, followed by Delhi.
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