Indian liquor companies are seeking an end to what they perceive as discrimination against their brands in the UK market. Despite the recent India-UK Comprehensive Economic and Trade Agreement (CETA), which reduced tariffs on Scotch whisky imports to India, Indian manufacturers claim that their products face unfair non-tariff barriers in the UK.

The Confederation of Indian Alcoholic Beverage Companies (CIABC) is petitioning the Indian government to take up the matter with the UK, ensuring that Indian brands can compete fairly. CIABC Director General Anant S Iyer stated that the UK and the European Union impose unfair import restrictions on Indian-Made Foreign Liquor (IMFL) products due to regulations concerning maturation and ingredients. He expressed disappointment that the Indian government did not stand firm on these non-tariff barriers during trade negotiations.

A key point of contention is the UK's classification of whisky. UK norms stipulate that a product must be matured for at least three years to be labeled as whisky. While this standard applies to UK-produced brands, Indian companies argue that it does not account for the climate differences. In India's warmer climate, maturation occurs at a faster rate. Requiring a three-year maturation period would lead to significant evaporation losses (approximately one-third of the spirit) and negatively impact product quality.

Because of these regulations, Indian companies are often compelled to classify their products as "Indian spirits," which they believe prevents them from accessing the broader whisky market in the UK and Europe. The CIABC wants to label their products as "Indian Whisky" or "Indian Rum/Brandy" and allow consumers to decide.

The Indian government has set an ambitious goal of achieving $1 billion in exports from the alcoholic beverage industry by 2030. However, the CIABC believes that this target will be difficult to meet without ensuring proper market access in the UK. They emphasize that while Indian whiskies, rums, gins, and wines are gaining recognition globally, non-tariff barriers and a lack of reciprocal market access will hinder export growth.

To further protect the domestic industry, the CIABC has suggested a minimum import price (MIP) on Bottled-in-Origin (BIO) products from Scotland to prevent Scotch whiskies from being imported at lower rates. They are concerned that the reduced import duties on Scotch whisky could lead to dumping, hurting the growth of premium Indian brands. The CIABC has urged the government to monitor imports closely and take action against any anti-dumping practices. They also want state governments to end all concessions currently extended to BIO brands, as the lowering of import duties is making it more economical to import alcoholic beverages than to produce them in India.