Mid-premium Indian Brands To Face Pressure From Cheaper Scotch

Over the past two decades, Indian whisky— especially single malts—has built a formidable presence in global markets, standing shoulder to shoulder with some of the world’s most celebrated brands. Now, however, the landscape is shifting. The India–UK trade agreement has reduced import duties on Scotch whiskies and gins, a similar pact with Australia is already in effect, and negotiations with the EU are on the horizon. These developments mark the beginning of a new chapter for the industry. How Indian consumers adapt to this evolving scenario will play a decisive role in shaping its future. Against this backdrop, RAKSHIT N Jagdale, Managing Director of Amrut Distilleries Pvt. Ltd., shares his perspective on what lies ahead.

Now a question that looms is that how the Scotch import duties cut from 150 percent to 75 percent will impact the sales of domestic whiskies. For some in the alcoholic beverage industry, this is an issue of concern.

Rakshit, the visionary spearheading the rise of the acclaimed Indian whisky brand Amrut, weighed in on India’s decision to slash import duties on Scotch and gin. “The sharp duty cut creates an uneven playing field for domestic producers. While it will certainly benefit Scotch sales, it risks dampening the momentum of India’s homegrown whisky industry, which has been steadily building global recognition and consumer loyalty,” he cautioned.

Since liquor pricing in India is largely dictated by states’ excise policies such as the recent duty hikes on IMFL in Maharashtra and Karnataka which have already reduced the difference between Indian and imported brands, the reduction in customs duty is likely to further narrow the price gap, making Scotch and gin from the UK more accessible.

Rakshit observes that the duty reduction will invite a flood of midpremium Scotch brands. “We do view this development more as a threat than an opportunity. The sharp duty cut gives mid-premium Scotch brands significant pricing leverage, which will inevitably squeeze Indian whiskies in the ₹1,800–2,000 range. Instead of upgrading consumer choices, it risks shifting demand away from domestic labels and putting undue pressure on margins and market share in a segment that has historically driven strong growth for Indian players,” points out Rakshit.

Cheaper Bulk Imports

Indian whisky makers often use imported Scotch in their blends. With the recent duty cut, this may translate into cost efficiencies for blended whiskies, leading to potential price reduction in domestic offerings as well. Rakshit agrees, saying, “Yes, the duty reduction is certainly a welcome move for importing bulk blended malt Scotch (BMS). It will allow us to source BMS at more competitive costs, creating greater efficiencies in our blended whisky portfolio.”

While immediate price cuts may not always be feasible given other cost S factors, this change does provide an opportunity to enhance value for consumers. This could be achieved either through improved quality of blends or by passing on some benefits over time.

Call for MIP

Trade groups have proposed safeguards like a minimum import price (MIP) on bottled Scotch imports to protect domestic producers. But can such regulatory interventions be sustainable in the long run? “Regulations like a MIP are indeed important as they help ensure a level playing field and protect domestic producers, while maintaining market stability over the long term,” Rakshit opines.

In this scenario, the strategy of Amrut Distilleries will be to highlight the unique craftsmanship, heritage and flavour profiles of their Indian whiskies, creating compelling storytelling around each brand. The company also plans to invest in targeted consumer experiences, tastings and loyalty programmes to deepen brand connection and showcase the value of choosing Indian offerings over imported alternatives.