The Indian alcoholic beverage industry has expressed discontent with the terms of Free Trade Agreement (FTA) between India and the United Kingdom, fearing that reduced import duties on foreign liquor could hurt domestic producers. Under the deal, tariffs on UK-made whisky and gin will be slashed from 150% to 75% initially, eventually dropping to 40% over a ten-year period.
This phased reduction is expected to significantly benefit British brands, which already command a strong foothold in India's premium spirits market.
Anant Iyer, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), said that though FTA details are still awaited, from what information we have gathered it seems that the Government has not fully heeded to the pleas of the Indian alcoholic beverage industry.
“We have always been asking for a level-playing field for the Indian players. We only hope that the government has included in the FTA the MIP (minimum import price) which will prevent dumping / under invoicing and also the removal of non tariff barriers to ensure better international market access to Indian alcoholic beverages.”
“We fear that if the same template of duty reduction is followed for the trade deals with the EU, the US and other nations which produce spirits and wines, then the Indian Alcobev industry, including the wine sector, could get adversely impacted,” stated Iyer.
CAIBC has now urge the Government of India, as pointed out earlier also to advise various states such as Maharashtra, Kerala, Odisha, Rajasthan, Madhya Pradesh etc which give excise concessions to imported liquor, both spirits and wines, that they should now review these concessions and make them equal to that of IMFL / Indian wines.