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Commerce ministry officials told industry executives that bulk Scotch imports qualify for the 75 percent import duty under the India-UK trade agreement.
The trade deal came into effect in July 2026, and the dispute arose after tax officials questioned whether bulk shipments were eligible for the tariff cut.
The reporting says the issue has drawn concerns from the UK and Scottish governments, which raised objections over the matter.
One report says Commerce Secretary Rajesh Agrawal stated that steps are being taken to preserve the duty concession, while another says the move is meant to ease the first major dispute under the trade deal.
More context
Scotch exports to India were valued at $335 million in 2024, and around 80 percent of Scotch whisky shipped to India arrives in bulk.