Scotch exports to India totalled $335 million in 2024, and the Scotch Whisky Association has forecast the trade deal could boost that figure by $1.34 billion over five years | Photo: Shutterstock
Indian customs is holding dozens of containers of bulk Scotch imported by Pernod Ricard and Diageo as investigators press for a 150% tariff, even though the companies rely on a New Delhi assurance of lower duties under the India-UK trade pact, according to four people with knowledge of the matter and a confidential government memo.
In the first major dispute linked to the trade deal, which took effect in July, customs investigators have ordered the higher tariff on the shipments arguing that bulk Scotch concentrates used to make whisky brands are not eligible for the pact's reduced 75% duty.
The investigators say the lower rate applies only to finished products such as bottled, ready-to-drink Scotch.
Following industry lobbying, India's commerce ministry assured senior executives on November 2 that it would honour the pact and resolve the dispute as soon as possible, leading liquor companies to believe the lower tariff would be applied.