India For Whisky Barrels, Not Bottles, In UK Free Trade Deal

India is not keen to include bottled whisky under the proposed free trade agreement (FTA) with the UK, but it may allow import of Scotch whisky in big barrels that can be bottled within the country, two government officials aware of the matter said.

This is being considered since some foreign liquor companies are under-invoicing bottled whisky while importing and then selling them in India, the officials said on condition of anonymity. Currently, India imposes tariffs as high as 150% to discourage imports of alcoholic beverages, including whisky.

"There have been issues with under-invoicing when it comes to bottled whisky, hence the decision that you can bring it in barrels and bottle in India," said one of the two officials cited above. Alcohol brought in barrels is used for blending and bottling, reducing the possibility of under-invoicing, they said.

The officials added that India's stand was separately conveyed to a UK minister early this month.

India and the UK have held 14 rounds of negotiations for the FTA, and both sides are keen to conclude the agreement. "The thinking is to announce the FTA between the two countries before the elections are announced since a lot of discussions have already happened," said the second official. India's general election is likely to be announced in March.