Scotch Whisky investment in a sweet spot

Scotch investment in India in 2025 shows potential for growth driven by a new trade agreement that reduced tariffs and a rising domestic luxury market. While the global auction market for Scotch has seen a downturn, factors like increased disposable income, premiumization, and the potential for further trade liberalization create a cautiously optimistic outlook for the long term. An investment fund specifically focused on Scotch has launched, indicating new avenues for collecting and investing.

Scotch investment growth in India is strong, driven by a growing middle class, increased demand from younger consumers, and a recent trade deal that will reduce import tariffs. India is now the world's largest importer of Scotch by volume, with sales doubling in the two years prior to 2023 and projected to grow by £1 billion over the next five years following the new tariff reductions. This growth is attracting major investment from companies like Diageo and has led to the launch of dedicated investment funds.

Significant future potential: Despite strong growth, Scotch still accounts for only about 2% of the total Indian whisky market, indicating substantial room for future growth.

Investing in whisky in India is possible through purchasing bottles or, more commonly, by buying and maturing casks. Opportunities are growing due to the rise of high-quality Indian single malts and the potential impact of the India-UK trade deal, which is set to reduce tariffs on Scotch whisky. Investors should research, consider cask vs. bottle options, understand the market, and look into direct programs with distilleries for cask ownership.

In a major development for UK-India economic relations, Britain and India have reached a long-anticipated free trade agreement that promises significant benefits for the UK’s spirits industry—especially Scotch whisky producers. Hailed as a “landmark” deal by Prime Minister Sir Keir Starmer, the agreement is expected to boost the British economy by £4.8 billion annually once fully implemented.

One of the most impactful provisions of the pact is the reduction of India’s 150% tariff on Scotch whisky and gin. Initially halved to 75%, the tariff will gradually drop to 40% over the next ten years, opening up the world’s largest whisky market to UK producers like never before.

The “once-in-a-generation deal,” projecting that the tariff cut could increase Scotch exports to India by £1 billion within five years and create 1,200 new jobs across the UK.

Chivas Brothers, part of the Pernod Ricard group, exports more than £2 billion of Scotch and gin annually. With India already among its largest export markets, the deal aligns with ongoing investments, including a €200 million distillery in Maharashtra and £100 million bottling facility in Dumbarton, Scotland.

The UK-India pact may prompt reactions from other trade players. Earlier this year, the US secured a deal to reduce India’s tariffs on Bourbon from 150% to 100%. Former President Trump has voiced concerns about discriminatory practices and may push for tariff parity with the UK.

The Scotch Whisky Association (SWA) has hailed the move as a “transformative opportunity” that could reshape global demand. With freer access and fewer financial barriers, distilleries across Scotland, from Speyside legends to Islay icons, are preparing to meet an expected surge in orders.