CIABC welcomes CETA, urges States to ensure fair competition
The Confederation of Indian Alcoholic Beverage Companies (CIABC) has welcomed the announcement that the India-UK Comprehensive Economic and Trade Agreement (CETA) will come into force from July 15, 2026. The agreement marks an important milestone in India-UK economic relations and is expected to strengthen bilateral trade, investment and market access across sectors.
Alcoholic beverages have been an important part of the India-UK trade discussions. CIABC appreciates that the tariff reduction on imported spirits will be phased over a period of 10 years, allowing the domestic industry time to adjust. Lower import duty on Scotch whisky will also help Indian producers using Scotch as an input for bottled-in-India products.
However, with customs duty on imported spirits now set to reduce under CETA, it becomes essential to address the State-level policy distortions that currently favour Bottled-in-Origin imported products over comparable Indian-made products in several markets.
In a number of States, like Delhi, Haryana, Maharashtra, Madhya Pradesh, Odisha, Assam and Kerala BIO products already benefit from lower duties, lower brand registration fees, lower VAT/sales tax, corporation margins or greater market-access flexibility. Once customs duty reduction takes effect, these State-level concessions could create a double advantage for imported products: first through reduced import duty and second through favourable local excise treatment.
CIABC believes that State Governments should now review and withdraw preferential treatment extended to BIO products wherever such treatment creates a structural disadvantage for Indian-made products.
The objective is not to restrict consumer choice, but to ensure competitive neutrality between domestically produced IMFL, bottled-in-India products and BIO imports operating in the same premium segments. Within this premium and above category, BIO products account 25% of the segment and growing, making policy neutrality in this space critical for the future of Indian premium brands.
Any policy structure that makes imported products structurally more attractive than Indian-made products weakens the domestic value chain and runs contrary to the spirit of Make in India, Vocal for Local and Atmanirbhar Bharat. CIABC therefore urges State Governments to move towards parity-based excise design in the premium and above segments where Indian brands are now gaining recognition in India and globally.
