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Trade group says India’s Scotch whisky probe undermines UK-India trade deal benefits

India’s exclusion of bulk Scotch whisky imports from a 75% preferential tariff violates terms agreed under the UK-India trade agreement, the Indian Spirits and Wine Association said in a letter to the commerce minister seen by Reuters. The group, which represents producers including Diageo and Pernod Ricard, warned the classification issue could hollow out the market-access gains from the deal. India’s Directorate of Revenue Intelligence searched Pernod Ricard and Diageo offices earlier in October over alleged misclassification of imports to obtain preferential rates.

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AI take

The dispute turns on tariff classification rather than headline rates, which makes it a test of whether the UK-India deal's fine print is enforceable in practice. It matters most to bulk importers and the global spirits majors operating in India, whose local units now face both a trade-policy argument and an enforcement probe over the same issue. Whether the commerce ministry treats the association's letter as a technical clarification or a broader renegotiation signal is the open question, and whether other sectors with similar classification-sensitive tariff lines see the precedent as a warning.

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