India is Scotch whiskey’s savior.
India has become one of the top importers of Scotch whiskey with an annual import of about 41 million bottles a year, reported Reuters.
According to the figures of the Scotch Whisky Association (SWA), India’s Scotch whiskey import has increased to $55.9 million, showing a jump of 28 percent in value.
“The growth of exports to India stood out, with value up 28 percent to £43 million,” the SWA said.
The amount of Scotch whiskey exports has increased for the first time in three years, mainly due to the booming demand from India. According to SWA, Scotch whiskey exports have moved up by 3.1 percent in the first six months of 2016.
High demand from India has helped global sales to reach 533 million bottles. But total Scotch exports have declined by 1 percent in value terms. But, still, the performance in the first half of 2016 is better than last year where about 3 percent decline was recorded.
Global demand for Scotch appears to be strengthening thanks to “an emphasis on craftsmanship and provenance, backed by investment”, SWA head David Frost said in a statement.
Scotch distilleries are trying to capitalize the booming demand in India. According to industry data specialist IWSR, spirit market is likely to expand by 3 percent despite the 150 percent tariff barrier in India.
“The full potential of the Indian market would only be delivered through liberalization of the exorbitant 150 per cent basic customs duty. We urge the UK government to prioritize discussions with India as it develops its post-Brexit priorities,” SWA said.
The association is looking forward to making a new agreement with India following the exit of Britain from the European Union. SWA is concerned about the likely impact of Brexit on the industry.
“It is clear, however, that the uncertainties of the Brexit vote will create challenges for exporters and we continue to encourage early clarity on the likely shape of the UK’s future trading relationship with the EU and other countries,” said David Frost.
The association has urged the UK government to take immediate action to help the industry explore Indian market to its full potential.