Latest news with #Ballantine's
Indian Express
4 days ago
- Business
- Indian Express
Daily Briefing: Highlights of the UK-India trade deal
Good morning, Prime Minister Narendra Modi, who is visiting London, has signed the landmark free trade agreement with his British counterpart, Keir Starmer. The Comprehensive Economic and Trade Agreement (CETA) comes against growing volatility triggered by US President Donald Trump's tariffs. The CETA promises to enhance bilateral trade, provide Indians with greater access to British products, ranging from cosmetics to cars, and allow for tariff-free access to 99% of Indian imports to the UK. Here's a look at some significant gains for India and the UK: 👉 The UK will eliminate import duties of up to 20% on job-creating sectors such as textiles, footwear, gems and jewellery. 👉 Indian food sectors, including seafood, dairy, and meat, will enjoy zero duties. Tariffs on tea and coffee have also been scrapped. 👉 In a first, India has allowed UK firms to participate in government tenders, giving them Class Two status under 'Make In India' rules, which require 20-50% domestic value addition. 👉 India has also halved the import tariffs on Scotch whisky, from 150% to 75%. Premium brands like Chivas Regal, Ballantine's, Glenlivet, Glenfiddich, and Johnnie Walker are set to become more affordable. This gives Scotch distillers access to the world's largest whisky market by volume; however, the Indian alcoholic beverage industry has raised concerns over potential dumping. Also read: The history behind Scotch whisky 👉 You may see more British luxury vehicles on the roads as the CETA slashes duties on internal combustion engine cars to 30-50%. However, the benefit will be quota-based and apply to a limited number of vehicles. The duties will be further reduced gradually over the years. Zero-emission cars will also see reduced tariffs, depending on their cost, benefiting automakers like Jaguar Land Rover, a manufacturer of SUVs. 👉 Lastly, the UK and India have also agreed to ease the exchange of services. They will now require temporary employees to pay social security contributions only in their home countries, which would mean greater take-home salaries. Where the chips fall: The abrupt resignation of Jagdeep Dhankhar as Vice-President hints at growing differences between the ruling BJP and the man it once welcomed as 'kisan putra' after his election in 2022. His acceptance of the Opposition's impeachment motion against Justice Yashwant Varma, much to the government's chagrin, may not have been the sole reason for his exit, but was probably the last straw, writes contributing editor Neerja Chowdhury. The fallout from Dhankhar's exit is still unfolding, but Chowdhury opines that the next Vice President is unlikely to be someone outspoken. 🎧 For more on Dhankhar's resignation, tune in to the latest '3 Things' podcast episode, where we discuss the developments with our political reporter, Liz Mathew. Fall and fall: On Thursday, the Enforcement Directorate (ED) searched over 35 locations in Mumbai linked to industrialist Anil Ambani, as part of a money laundering probe into an alleged Rs 3,000 crore bank loan fraud. The latest setback to the Reliance Anil Dhirubhai Ambani Group comes at a time when it was looking to recover from a years-long turbulent journey marked by debt defaults, financial losses, and insolvency proceedings in the wake of the Ambani brothers' split. Data loss: The April security breach at the Indian Council of Agricultural Research (ICAR), the country's apex organisation in the sector, resulted in the loss of 'crucial data' related to recruitment and research projects. Here's what an ICAR committee report states. Rules of the game: The National Sports Governance Bill, introduced by Sports Minister Mansukh Mandaviya in the Lok Sabha on Wednesday, proposes two significant changes to how sports are governed in the country. It will establish a National Sports Board with broad powers to oversee the functioning of federations, as well as a National Sports Tribunal to resolve disputes. My colleague, Mihir Vasavda, spoke with eminent sports lawyer Nandan Kamath about the key aspects of the Bill and why it was necessary. Smokescreen? The Maharashtra House cleared a Special Public Security Bill earlier this month to curb 'Left Wing Extremism (LWE)'. Columnist Suhas Palshikar points out the gaps in the legislature's language, which could leave social activists vulnerable and criminalise dissent. Read. ♟️ The Women's Chess World Cup has reached an interesting stage, with the final battle set between two Indian candidates. The battle is also intriguing because on one side is a young, ambitious 19-year-old who just defeated a former world champion, and on the other is the first Indian woman to become a grandmaster. At 38, Koneru Humpy is twice the age of Divya Deshmukh, who just completed the first of three norms required to become a grandmaster — and India's fourth woman grandmaster. That's all for today, folks! Happy weekend-ing! Sonal Gupta
Indian Express
4 days ago
- Business
- Indian Express
India-UK CETA: Scotch imports to get cheaper now with tariffs halved to 75%
After the India-UK Comprehensive Economic and Trade Agreement (CETA) signed today, scotch whisky imports from the UK are set to get cheaper for Indian consumers, with tariffs slashed from 150 per cent to 75 per cent. The landmark agreement does not impose minimum import price (MIP) rules on scotch imports, which had been a key demand of India's domestic industry. British scotch brands including Chivas Regal, Ballantine's, Glenlivet, Glenfiddich, and Johnnie Walker could benefit from the tariff reduction. Under the agreement, India will immediately cut tariffs by half to 75 per cent, and then to 40 per cent over ten years, once the deal is ratified domestically by the two countries. Scotch distillers in the UK have welcomed the reduction in tariffs, which will give them greater access to the world's biggest whisky market by volume. Whisky was the UK's fifth-largest export product to India in 2024-25, valued at roughly $260 million. 'The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade,' said Jean-Etienne Gourgues, Chairman and CEO of Chivas Brothers, the firm behind popular whisky brands such as Chivas Regal and Ballantine's. India's domestic alcoholic beverage industry, however, has flagged potential dumping concerns with the reduction in tariffs. 'Though lowering of import duty on Scotch will help the domestic industry—as Scotch used to produce blended products will also get cheaper—we hope that the government will ensure that Scotch whisky and other spirits (BIO-bottled in origin) are not dumped at low import prices or routed through any other country at cheaper rates, which would hurt the YOY growth of premium and luxury Indian brands,' said Anant S Iyer, director-general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), hours before the full text of the agreement was made public. To counter dumping, Iyer said the industry had recommended to the government to introduce MIP rules for scotch. However, the agreement does not impose any such requirements on scotch imports. 'With the import duty being cut drastically, it is high time that a number of state governments end all concessions—such as lower brand registration fees, reduced excise duties, etc.—currently extended to BIO brands,' Iyer said. 'This has created a situation where importing Alcobev products is becoming cheaper than producing it in India. With lower import duties, it will now become even more economical for MNC's to import their products. State governments should end all discrimination against India-made alcoholic beverages,' he added in a media note. Iyer also flagged lack of market access for Indian-made foreign liquor in the UK and EU due to non-tariff barriers related to maturation and ingredients. 'Though Indian whiskies, rum, gins, wines, etc., have been winning accolades globally, the lack of removal of non-tariff barriers and absence of reciprocal market access will make this export target hard to achieve,' he said. While tariffs on Indian exports of beverages, spirits, and vinegar have been eliminated entirely, non-tariff barriers are likely to remain. Opening up the Indian market to foreign liquor has been a contentious issue in trade talks, including those ongoing with the US and the EU. Earlier in February, when the government had slashed duty on bourbon whisky – a key US export – from 150 per cent to 50 per cent, the domestic industry urged states to withdraw all excise concessions given to imported liquor, arguing that the customs duty cuts would harm Indian products in both the spirits and wine categories. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
Indian Express
4 days ago
- Business
- Indian Express
India-UK CETA: Scotch whisky imports to get cheaper now with tariffs halved to 75%
After the India-UK Comprehensive Economic and Trade Agreement (CETA) signed today, scotch whisky imports from the UK are set to get cheaper for Indian consumers, with tariffs slashed from 150 per cent to 75 per cent. The landmark agreement does not impose minimum import price (MIP) rules on scotch imports, which had been a key demand of India's domestic industry. Under the agreement, India will immediately reduce tariffs by half to 75 per cent, and then to 40 per cent over ten years, once the deal is ratified domestically by the two countries. Scotch distillers in the UK have welcomed the reduction in tariffs, which will give them greater access to the world's biggest whisky market by volume. Whisky was the UK's fifth-largest export product to India in 2024-25, valued at roughly $260 million. 'The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade,' said Jean-Etienne Gourgues, chairman and CEO of Chivas Brothers, the firm behind popular whisky brands such as Chivas Regal and Ballantine's. India's domestic alcoholic beverage industry, however, has flagged potential dumping concerns with the reduction in tariffs. 'Though lowering of import duty on Scotch will help the domestic industry—as Scotch used to produce blended products will also get cheaper—we hope that the government will ensure that Scotch whisky and other spirits (BIO-bottled in origin) are not dumped at low import prices or routed through any other country at cheaper rates, which would hurt the YOY growth of premium and luxury Indian brands,' said Anant S Iyer, director-general of the Confederation of Indian Alcoholic Beverage Companies (CIABC), hours before the full text of the agreement was made public. To counter dumping, Iyer said the industry had recommended to the government to introduce MIP rules for scotch. However, the agreement does not impose any such requirements on scotch imports. 'With the import duty being cut drastically, it is high time that a number of state governments end all concessions—such as lower brand registration fees, reduced excise duties, etc.—currently extended to BIO brands,' Iyer said. 'This has created a situation where importing Alcobev products is becoming cheaper than producing it in India. With lower import duties, it will now become even more economical for MNC's to import their products. State governments should end all discrimination against India-made alcoholic beverages,' he added in a media note. Iyer also flagged lack of market access for Indian-made foreign liquor in the UK and EU due to non-tariff barriers related to maturation and ingredients. 'Though Indian whiskies, rum, gins, wines, etc., have been winning accolades globally, the lack of removal of non-tariff barriers and absence of reciprocal market access will make this export target hard to achieve,' he said. While tariffs on Indian exports of beverages, spirits, and vinegar have been eliminated entirely, non-tariff barriers are likely to remain. Opening up the Indian market to foreign liquor has been a contentious issue in trade talks, including those ongoing with the US and the EU. Earlier in February, when the government had slashed duty on bourbon whisky – a key US export – from 150 per cent to 50 per cent, the domestic industry urged states to withdraw all excise concessions given to imported liquor, arguing that the customs duty cuts would harm Indian products in both the spirits and wine categories. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
The Herald Scotland
4 days ago
- Business
- The Herald Scotland
Scotch whisky toasts major breakthrough in troubled era
UK Prime Minister Sir Keir and his Indian counterpart Narendra Modi today signed a free trade agreement (FTA) that both parties declared will bring major economic benefits to their respective countries. The deal is expected to pave the wave for significant investment by Indian companies to expand their operations in the UK and for British companies to boost exports to India (and vice versa) through the liberalisation of tariffs. The latter has been especially welcomed by the Scotch whisky industry, which has long highlighted the potential of India – the biggest whisky market in the world – as a lucrative overseas sales destination for the water of life. Read more: India has agreed to slash tariffs on Scotch whisky in half, with the import tax reduced immediately from 150% to 75% and then gradually cut to 40% over the next 10 years. Jean-Etienne Gourgues, chairman and chief executive of Chivas Brothers said: 'Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry. India is the world's biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine's. 'The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade. Let's hope that both governments will move quickly to ratification so business can get to work implementing the deal.' More generally, India's average tariff on UK products will drop from 15% to 3%, which the Government says will make it easier for British companies making everything from soft drinks and cosmetics to cars and medical devices to sell into India. UK exports to India are forecast to increase by 60% in the long run, equivalent to an additional £15.7 billion of UK exports to India when applied to projections of future trade in 2040. Bi-lateral trade is expected to rise by 39%, equivalent to £25.5bn a year, when compared to 2040 projected levels of trade in the absence of an agreement. However, behind the celebratory tone of the announcement lurks a slightly sobering factor: the boost to UK GDP from the deal with India will amount to 0.1% by 2040. This pales somewhat into insignificance compared with the 4% hit to UK GDP estimated to have arisen from Brexit.
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Business Standard
4 days ago
- Business
- Business Standard
India-UK FTA to cut spirit duties, but price drop may be limited: Experts
The India-UK free trade agreement will reduce duties on imported spirits, making premium international options more accessible to Indian consumers, according to industry players, but experts cautioned that the benefits may be limited as the maximum price reduction could be only up to ₹300 per bottle. As per the FTA signed in London between the two governments, India is reducing duty on UK whisky and gin from 150 per cent to 75 per cent and further to 40 per cent in the tenth year of the deal. "Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150 per cent to 75 per cent and then dropped even further to 40 per cent over the next ten years - giving the UK an advantage over international competitors in reaching the Indian market," as per an official statement of the UK government. Reacting to the development, the International Spirits and Wines Association of India (ISWAI), which represents premium alcoholic beverage companies in India (mostly MNCs), hailed it as a historic moment for the alcobev sector and paves the way for a more balanced and equitable trade environment. "The deal will significantly benefit Indian consumers, as premium international spirits will become more accessible, thereby accelerating the ongoing trend of premiumisation. It will also stimulate growth across ancillary sectors, such as hospitality, tourism, and retail, while potentially increasing the revenue for Indian states," ISWAI CEO Sanjit Padhi said. Diageo India MD and CEO Praveen Someshwar said: "We laud the Indian and British governments for formalising this historic treaty, which will boost bilateral trade and positively impact the accessibility of premium Scotch whisky in India, reigniting growth and increased choice for Indian consumers". Chivas Brothers Chairman and CEO Jean-Etienne Gourgues termed the India-UK FTA as "a sign of hope in challenging times for the spirits industry". "India is the world's biggest whisky market by volume, and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine's," Gourgues noted. Industry experts, however, opined that while companies could benefit end-consumers, there would be very few benefits in terms of price reduction. "Consumer prices for imported Scotch (whiskey) are not likely to change much. Most of the taxes on alcohol sit in states, and even if all customs duty reduction is passed on, the impact on consumer prices of imported Scotch whiskies will be in the range of ₹100-300 per bottle," liquor industry expert Vinod Giri said. Since price segments in whisky are currently too wide, this much reduction is not going to win any new consumers, and hence companies are likely to instead pocket the savings, he added. Moreover, with the FTA in place, there is a likelihood that over the next few years, the bottled-in-India (BII) Scotch whiskies category, where Scotch is imported in bulk for bottling here using local packaging material, would be replaced by direct imports. Brands, including Black Dog, 100 Pipers, Passport, Vat 69 and Black & White, are imported in India and then bottled here to save tax. "With falling customs duty, the entire rationale of packaging locally to save duty goes away, and it would make more commercial sense for companies to produce in Scotland at lower cost and export to India rather than go through the hassle of setting up and running a bottling plant in India. Consumers may see a marginal drop in prices but not enough to affect most Indian whiskies," he said. Confederation of Indian Alcoholic Beverage Companies (CIABC), an industry body of IMFL manufacturers, said the lowering of import duty on Scotch will help the domestic industry, as it will help to reduce the cost of blended products, but expressed concern that over possible 'dumping of Scotch whiskey brands', which have been bottled in India before the FTA. "We hope that the government will ensure that Scotch whisky and other spirits (BIO - bottled in origin) are not dumped at low import prices or routed through any other country at cheaper rates, which would hurt the YOY growth of premium and luxury Indian brands," CIABC Director General Anant S Iyer said. He also suggested "imposition of a minimum import price (MIP) on BIO products" by the government to safeguard the domestic industry.
