India Set to Conquer Global Scotch Market! Trade Deal Promises Cheaper Prices & Jobs Boost

India Poised to Lead Global Scotch Sales

• India is on track to become the world's largest market for Scotch whisky, according to the Scotch Whisky Association (SWA).
• This growth is driven by rising disposable incomes in India and the anticipated India-UK Comprehensive Economic and Trade Agreement (CETA).

The India-UK Trade Agreement (CETA) Promises Boost

• The CETA agreement, expected to be ratified by the UK Parliament and implemented around mid-next year, is set to reduce Scotch whisky prices in India by 9-10%.
• This price reduction is anticipated to significantly increase demand and make Scotch more accessible to Indian consumers.
• Mark Kent, chief executive of SWA, stated that the agreement will foster job creation and investment across the entire value chain in both the UK and India.

Job Creation and Investment Across the Value Chain

• New employment opportunities are expected to emerge not only in distilleries but also in barley farming.
• The agreement will support jobs in bottling, the hospitality sector, and tourism, benefiting both countries.

SWA's Firm Stance on 'Whisky' Definition

• The Scotch Whisky Association has reiterated its strict definition of whisky, stating that only spirits meeting UK domestic legislation standards can be called whisky.
• This position means spirits matured for less than three years, as may be produced in India, will not be recognized as whisky by SWA.

India's Market Size and Future Importance

• India is already the SWA's most significant export market globally, out of 180 countries served.
• The Indian whisky market is currently twice the size of the entire Scotch industry.
• With India's economic growth and rising disposable incomes, its importance for Scotch makers is expected to increase substantially.

Opportunities for Indian Businesses and Partnerships

• Reduced import duties under CETA could allow Indian companies to import bulk Scotch more affordably for use in Indian Made Foreign Liquor (IMFL), enhancing product quality.
• There is also interest from Indian companies in setting up distilleries in Scotland, indicating developing bilateral partnerships.

Impact

• Consumers are likely to benefit from lower prices and greater accessibility to Scotch whisky.
• Businesses in the Indian beverage sector, particularly those involved in importing or enhancing IMFL, may see growth opportunities.
• The hospitality and tourism sectors are poised for positive impact through increased employment.
• Impact Rating: 7

Difficult Terms Explained

• Disposable incomes: The amount of money households have available for spending and saving after taxes are paid.
• CETA: Comprehensive Economic and Trade Agreement, a proposed trade deal between India and the UK, aimed at reducing trade barriers.
• IMFL: Indian Made Foreign Liquor, referring to alcoholic beverages manufactured in India but mimicking foreign styles.
• Value chain: The full sequence of activities from raw material production to final product delivery and consumption.
• Domestic legislation: Laws and regulations made by the government of a specific country.