The recently finalized India-UK Free Trade Agreement (FTA) has sent ripples across India’s spirits and hospitality sectors. A pivotal aspect of the deal is the reduction of import duties on Scotch whisky and gin, which will gradually decrease to 40% over the next decade. While this may initially impact domestic liquor brands, it offers long-term growth prospects for India’s evolving hospitality industry.
Shares of Indian liquor companies saw a dip of up to 5% on Wednesday, signaling immediate concerns about competitive pressures. However, for hospitality, the agreement is a double-edged sword. On one hand, reduced duties could lead to a surge in premium imported spirits, elevating beverage offerings in luxury hotels, bars, and restaurants. On the other, local brands may need to innovate and reposition to maintain their foothold in a competitive market.
Industry experts see this as an opportunity for Indian hospitality to reimagine its beverage menus and align with global trends. With a growing preference for premium experiences among travelers, hoteliers could leverage the influx of world-class spirits to enhance guest satisfaction and attract international clientele.
