India has assured industry executives it will honour the UK trade pact and resolve a dispute over Scotch whisky tariffs.
India assured industry executives on Monday that it would honour its trade pact with Britain and resolve a dispute over Scotch whisky tariffs, easing concerns for companies such as Diageo and Pernod Ricard, according to six people with direct knowledge of the matter.
In the first major dispute linked to the India-UK trade pact, implemented in July, New Delhi in recent weeks launched investigations into major liquor companies and told them bulk Scotch imports were not eligible for the tariff cut to 75 per cent from 150 per cent agreed under the deal.
At a closed-door meeting, commerce ministry officials told executives that New Delhi would honour the pact in letter and spirit. One government source said bulk Scotch imports were part of the concessions under the deal. A second source said Commerce Secretary Rajesh Agrawal told attendees that necessary steps were being taken so that the duty concession on bulk Scotch whisky is not impaired.
The disagreement centres on customs classifications. The industry argues that all Scotch imports, whether bottled or bulk, should qualify for the reduced tariff. Scotch exports to India stood at $335 million in 2024.
Source: Reuters
