India’s government is set to meet liquor companies on Monday following growing concerns over a federal investigation into bulk Scotch whisky imports from the United Kingdom. The dispute has raised questions about the implementation of the India-UK trade pact and its potential impact on the country’s alcohol industry.

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Under the trade agreement, implemented in July 2026, India agreed to reduce tariffs on certain UK whisky imports from 150% to 75%. However, the government has reportedly informed major companies that bulk Scotch imports do not qualify for the reduced tariff, triggering objections from international and domestic industry groups.

The International Spirits & Wines Association of India, which represents companies including Diageo and Pernod Ricard, has warned that excluding bulk Scotch whisky from the tariff reduction could weaken the benefits of the trade agreement. Domestic manufacturers have also raised concerns about the potential consequences for local production.

The Confederation of Indian Alcoholic Beverage Companies (CIABC) has joined the opposition, citing the possible impact on domestic manufacturing in a confidential letter dated October 27, according to the supplied report.

Bulk imports are particularly important to the Indian whisky market. Around 80% of Scotch whisky imported from Britain by volume reportedly arrives in bulk and is used in the production of popular brands. Industry participants had expected lower import duties to support business activity and improve the economics of whisky production and sales.

The dispute comes as India’s alcohol industry, valued at approximately $65 billion in the report, seeks to balance international trade commitments with the interests of domestic manufacturers. The outcome of Monday’s discussions could help clarify how the government intends to apply the tariff provisions to bulk Scotch imports.

The key issue is whether bulk whisky shipments will receive the same tariff benefits as other qualifying imports under the agreement. Until the government clarifies its position, uncertainty could persist for companies that rely on imported Scotch as an input for products manufactured and sold in India.