India’s Growing Thirst for Scotch — Becomes 3rd Largest Importer

At 41 million bottles in 2015, India saw a 41 percent increase in sales volumes.

India has emerged as one of the world’s fastest-growing import markets for Scotch whisky. (Photo Courtesy: Ashwin Rajagopalan)

India has emerged as one of the world’s fastest growing import markets for Scotch whisky with the value of exports surging 28 percent to 43 million pounds, a British trade body said on Friday while seeking urgent help from the UK government to bring down India’s “exorbitant” 150 percent customs duty on liquor.

The Scotch Whisky Association (SWA) revealed that the amount of Scotch whisky sold overseas increased for the first time since 2013, largely thanks to India registering a massive jump in shipment value.

India has established itself as the third-biggest export market for Scotch at 41 million bottles, marking a 41 percent increase in sales volumes, after France (90.9 million bottles) and the US (53.1 million bottles).

“The growth of exports to India stood out, with value up 28 percent to 43 million pounds,” the SWA said. The industry body also called for urgent action from the UK government to help realise the full potential of the Indian market.

The full potential of the Indian market would only be delivered through liberalisation of the exorbitant 150 percent basic customs duty. We urge the UK government to prioritise discussions with India as it develops its post-Brexit priorities.

Diageo, a leading UK-headquartered distilling company, recently took over Indian liquor baron Vijay Mallya’s United Spirits distribution network in India, which is being linked to the sale of 12 million more bottles than last year.

Most of that was in bulk, for bottling in India, or blending with Indian whiskies.

However, India also registered a marked rise, by more than half, in the amount of single malt whisky shipped to India, adding up to more than 7,00,000 bottles. Scotch, a patent of Scotland, overall had the equivalent of 533 million bottles shipped from the UK in the first six months of 2016, marking a 3.1 percent increase.

SWA attributes this to an “industry-wide emphasis on craftsmanship and provenance, backed by investment”.