New Delhi, July 7 -- The India-UK Free Trade Agreement (FTA) is set to come into effect on 15 July. One of the biggest takeaways for Indian consumers is the gradual reduction in prices of imported Scotch whisky and gin.

Under the agreement, import tariffs on whisky and gin will be cut from the current 150% to 75% initially, then to 40% by the 10th year of the deal.

However, consumers should not expect prices to fall by the same percentage as the reduction in import duty.

According to Paul P John, Chairman, John Distilleries, import duty is only one part of the final retail price. Other costs, such as state excise duties, VAT, distributor and retailer margins, logistics, packaging and marketing, make up a much larger share of what consu...