India promises to resolve Scotch whisky tariff dispute under UK trade deal
The government told liquor companies it will uphold the trade pact to address concerns within the $65 billion industry.
The Indian government on Monday assured liquor companies that it will uphold the India-UK trade pact and resolve a disagreement regarding Scotch whisky tariffs, according to Business Standard.
This assurance follows recent investigations by New Delhi into major companies. The government had previously informed firms that bulk Scotch imports were ineligible for the tariff reduction from 150 per cent to 75 per cent agreed in the deal, Reuters reported.
The dispute has caused concern for the $65 billion industry and companies such as Diageo and Pernod. This marks the first significant disagreement related to the India-UK trade pact that was implemented in July.
During a closed-door meeting with industry representatives on Monday, one source stated that a resolution is potentially being approached. The source added that bulk Scotch whisky imports are included in the concessions under the trade agreement.
The commerce ministry of India did not immediately respond to queries from Reuters regarding the matter.