How is the Indian alcohol market changing according to the report?

The Indian alcohol market is shifting from a volume-led to a value-driven "premiumisation" model, with projections of reaching Rs 5.8 lakh crore by 2030.

What is the impact of the India-UK Free Trade Agreement (FTA) on spirits in India?

The FTA will reduce import duties on UK whisky and gin from 150% to 75%, making luxury spirits more accessible and leading to estimated price drops of Rs 200-300 per bottle.

Which companies are benefiting from the premiumization trend in India?

United Spirits (USL) is identified as a primary beneficiary, holding a dominant market share in the premium and alcobev segment, with Indian single malt brands like Indri and Rampur also gaining significant traction.

Home / Business and Economy / India's Spirits Surge: Premiumization & FTA Boom

India's Spirits Surge: Premiumization & FTA Boom

4 Feb

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Summary

Indian malts are winning global accolades, outperforming Scots.
India-UK FTA will halve whisky and gin import duties.
Younger generations are driving a 'drink better' culture.

India's Spirits Surge: Premiumization & FTA Boom

The Indian Alcoholic Beverage (AlcoBev) industry is undergoing a significant structural shift, moving from a volume-driven market to one focused on value and premiumization. Projections estimate the sector will reach Rs 5.8 lakh crore by 2030.

The India-UK Free Trade Agreement (FTA), expected to be ratified in early 2026, is a key catalyst. It will reduce import duties on UK whisky and gin from 150% to 75%, making luxury spirits more affordable.

This regulatory change is expected to lead to immediate price drops for popular Scotch labels, estimated at Rs 200-300 per 750ml bottle. The deal also aims to accelerate the shift towards 'Bottled-in-Origin' imports and encourages reciprocal market access for Indian distillers.