Diageo plans to cut Scotch prices in India

Diageo Plc is set to reduce Scotch whisky prices in India by a high single-digit percentage, following the signing of the India-UK Free Trade Agreement (FTA), which will lower import duties on alcoholic beverages. The company shared that the benefits of reduced tariffs will be passed on directly to Indian consumers once the FTA is fully implemented, according to media reports.

According to Diageo, the FTA is expected to come into effect in fiscal year 2027 and will significantly boost accessibility and affordability of premium Scotch whisky in India, the world’s largest whisky-consuming market. The country is already Diageo’s largest market by volume and second-largest by value.

Diageo’s Chief Financial Officer Nik Jhangiani stated that the company is closely monitoring the legislative process of the trade agreement. “This (FTA) will take some time to embed into legislation. I think the belief right now is it will come in fiscal year 2027, but we will keep watching that, so the benefits will start flowing through,” he was quoted as saying in the media.

The move is expected to give Diageo a stronger competitive edge in India’s premium spirits segment and offer consumers more affordable access to imported Scotch brands.