Daijiworld Media Network - New Delhi

New Delhi, May 13: There is good news for alcohol enthusiasts in India. Popular British alcoholic beverages, including beer and Scotch whisky, will now be available at significantly lower prices due to a major reduction in import duties.

Following the conclusion of the Free Trade Agreement (FTA) between India and the United Kingdom on May 6, the Indian government has slashed the import duty on British beer by 75 percent. Previously, British beer attracted a hefty 150 percent tax in India. Under the new FTA terms, this has now been reduced to 75 percent — a move that is expected to directly benefit consumers.

Along with beer, the import duty on British Scotch whisky has also been reduced, making it considerably more affordable in the Indian market. The duty on Scotch whisky will be brought down from 150 percent to 75 percent immediately, and further reduced to 40 percent by the 10th year of the agreement.

The FTA does not just benefit alcoholic beverage consumers. It also provides tariff reductions on various other British goods, including automobiles and high-end products. At the same time, the United Kingdom has agreed to reduce import duties on products coming from India such as garments and leather goods.

However, the agreement does not extend duty concessions to all product categories. Notably, wine from the UK has been excluded from import duty relief, as it falls under the sensitive goods category. Similarly, India has not agreed to reduce import duties on key agricultural items like dairy products, apples, cheese, oats, and edible oils of animal and plant origin. Officials clarified that these are considered sensitive agricultural goods and have been kept out of the trade concession list.

The India-UK Free Trade Agreement marks a significant shift in bilateral trade, promising benefits for select industries and consumers while safeguarding sensitive sectors in both countries.