Goa, Nov. 2 -- A fresh trade dispute between India and the United Kingdom over import duties on bulk Scotch whisky has raised concerns within the Indian liquor industry, with popular blended whisky brands potentially facing higher production costs. The disagreement centres on whether bulk Scotch imported into India for blending and bottling locally qualifies for reduced customs duties under the India-UK Free Trade Agreement (FTA), which came into effect on July 15, 2026.

Under the trade agreement, India agreed to reduce import duties on certain Scotch whisky imports from 150 per cent to 75 per cent immediately, with a further reduction to 40 per cent over the next 10 years. However, the Indian government maintains that the reduced tariff...