Thirst for premium: India to emerge as world's No 1 Scotch market

New Delhi: India is set to emerge as the world’s biggest Scotch whisky market in both value and volume within the next few years, driven by premiumisation, competition, and economic growth, according to Scotch Whisky Association Chief Executive Mark Kent CMG.

Kent praised the rise of India’s single malt whisky industry, noting that the association is seeking partnerships with Indian producers not just for exports to the UK but also for joint expansion into global markets. He added that Scotch producers and Indian malt makers share the same commitment to quality and collaboration.

Calling it a major opportunity for both the Indian and Scottish industries, Kent said Indian firms can enhance single malt exports to the UK and form strategic global alliances. India already leads in Scotch imports by volume across 180 markets, while ranking among the top five in value terms.

“If you consider the rapid growth of the Indian market and the increasingly competitive environment for Scotch imports, it’s realistic to expect India to soon become the largest market both in volume and value,” Kent said, expressing optimism about India’s growing appreciation and knowledge of whisky.

According to Scotch Whisky Association data, India reclaimed its top spot from France as the world’s largest Scotch export destination by volume in 2024, accounting for 192 million bottles, while the US remained the top market by value at £971 million.

Kent said the India-UK Free Trade Agreement (FTA), once operational, will bring a wider range of Scotch whiskies to India, including those from smaller Scottish producers. It will also increase bulk Scotch imports, supporting Indian manufacturers of IMFL products. He noted that reduced tariffs on bulk whisky—79 per cent of exports to India—will make imports cheaper and foster stronger bilateral investment.

Under the FTA signed in London, India will progressively lower duty on UK whisky and gin from 150 per cent to 75 per cent, and further to 40 per cent over ten years. Kent, who joined British Prime Minister Keir Starmer’s delegation to India in October, said he aims to ensure the agreement delivers tangible business outcomes for both sides.

He added that while the FTA is expected to make Scotch more affordable, retail prices will also depend on individual states’ tax regulations and company pricing strategies. Kent emphasised the need for an optimal regulatory and tax framework that encourages investment, trade, and higher state excise revenue, adding that the association is ready to work with Indian authorities to achieve these goals.

With inputs from PTI