New Delhi: The Confederation of Indian Alcoholic Beverage Companies (CIABC) has raised concerns over the recently concluded Free Trade Agreement (FTA) between India and the UK, stating that while the deal is expected to boost bilateral trade and investments across sectors, it could adversely impact the Indian alcoholic beverage (Alcobev) industry if domestic interests are not safeguarded.
CIABC Director General Anant S Iyer said that alcoholic beverages were a key topic during FTA negotiations. “Though the full details of the FTA are awaited, we hope the government has ensured a level playing field for the Indian Alcobev industry, which is growing robustly and contributing significantly to state revenues,” he noted.
Iyer pointed out that sharp reductions in import duties could make it cheaper for multinational companies to import alcoholic products rather than produce them in India.
He urged state governments to withdraw special concessions—like lower brand registration fees and reduced excise duties—granted to bottled-in-origin (BIO) brands, arguing these policies undermine domestic producers and contradict the ‘Vocal for Local’ initiative.
Highlighting trade barriers faced by Indian-made products in the UK and EU—such as restrictions on ingredients and maturation—Iyer expressed disappointment that these non-tariff barriers were not firmly addressed in the FTA. He cautioned that without reciprocal market access, India’s goal of reaching $1 billion in Alcobev exports by 2030 would be hard to achieve.
While acknowledging that reduced Scotch import duties could help domestic blending operations, he warned against underpriced imports or routing through third countries. Mr Iyer recommended the imposition of a Minimum Import Price (MIP) and deployment of technology, such as billing price monitoring and GI tagging at ports, to prevent dumping and protect the growth of premium Indian brands.