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Indian distillers invest as Scotch duty halves: Modi Illva Rs 150-200 crore, IndoBevs Rs 200 crore
Our read
Domestic distillers are spending ahead of the duty cut, and Indian single malt will most likely keep growing in the near term.
For operators
With duty on UK whisky halving from 150% to 75% and heading to 40% from year 10, Scotch shelf prices should come down, so plan range and pricing now against Indian single malts, which grew 22% to 500,000 nine-litre cases.
Watch
Formal entry-into-force date and the customs notification of the 75% tariff line
Ask next
What else has Modi Illva done in the last three months?The report,
Indian distillers are expanding capacity as the India-UK CETA cuts Scotch duty from 150% to 75% initially, falling to 40% from year 10. Modi Illva is investing Rs 150-200 crore in a new malt distillery, and IndoBevs about Rs 200 crore in Muzzaffarnagar.
- Duty on UK whisky before the CETA150%
- Duty on UK whisky, initial cut75%
- Duty on UK whisky from 10th year40%
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Reported figures
From the report. Source details below
| Scotch exports to India in 2025: | 220 million 70cl bottles |
|---|---|
| Scotch export volume growth to India in 2025: | 15% |
| Indian single malt sales in 2025: | 500,000 nine-litre cases |
| Indian single malt sales growth in 2025: | 22% |
What to watch next
- Scotch brand owners' India price-list changes or new launches after the cut
- Further Indian distillery capex announcements beyond Modi Illva and IndoBevs
- Next annual Indian single malt case volumes against the +22% growth in the latest data
- State excise policy changes on imported spirits pricing and label approvals
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Other Indian malt makers are likely to announce their own distillery expansions or cask-ageing capacity, following Modi Illva (Rs 150-200 crore) and IndoBevs (about Rs 200 crore).
- Scotch exporters are likely to bring forward price repositioning and new-SKU launches in India once the 75% duty takes effect, aiming at the premium shelf that Indian single malt has been winning.
- Indian distillers may lean harder on provenance, age statements and export ambitions to defend premium pricing against cheaper Scotch.
- State excise departments are likely to decide how much of the duty cut reaches consumers, through state-level pricing, label registration and retail margins.
- Retailers and bar chains may widen Scotch ranges and promotions as landed costs fall, while keeping Indian malts as the value-premium alternative.
The source
First seen