Som Distilleries & Breweries led the declines, falling as much as 5.3% to Rs 125.50 on the BSE. Shares of Radico Khaitan dropped 4.3% to Rs 2,425.05, while Piccadily Agro Industries slid 4% to Rs 521.
The market reaction followed Tuesday’s announcement of the India–UK FTA, under which India will slash import duties on Scotch whisky and gin from the current 150% to 75%, with a further reduction to 40% by the tenth year of the agreement.
Currently, import duties account for around 15% of the retail price of Scotch whisky in India. The tariff cut is expected to significantly improve the competitiveness of imported brands, particularly affecting companies like United Spirits, whose luxury and premium portfolio — exposed to imported Scotch — contributed 32% to its net sales in FY24.
Strategic trade pact finalised
The deal, which took nearly three years to negotiate, was signed on May 6 and is seen as one of the most comprehensive trade agreements ever entered into by India. It covers a broad range of tariff lines, services, and market access provisions. Nearly 99% of Indian exports to the UK will benefit from zero duty, while the UK will see tariff reductions on 90% of its product lines.
The agreement is projected to increase bilateral trade by GBP 25.5 billion by 2040 and is viewed as a major milestone in India’s global trade ambitions.
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